EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Cherokee County

XTO Energy Inc. is preparing to drill the Staton Gas Unit No.1 Well No.7 to a total depth of 12,700-feet in the Doyle Creen (Travis Peak) Field. The well will be located 7.1 miles northwest from Wells in the Durst,J Survey,A-15. This well may also be drilled in the Doyle

Creek (Pettit) Field.

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In a lease 7.3 miles southwest from Alto, in a Wildcat Field, the Summers Well No.1 will be drilled by Chesapeake Operating, Inc. This well will bottom at 14,000-feet in the Harris, Hrs. J Survey, A-403. The well may also be drilled in the Decker Switch (Pettit) Field or the Decker Switch (Travis Peak) Field.

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Chesapeake Operating, Inc. will drill the Sessions Well No.3 in the Doyle Creek (Travis Peak) Field. This well will be located 2.2 miles northwest from Wells with a depth of 15,000-feet in the Bowman, J Survey, A-88. This well may also be drilled in the Crossman (Woodbine 5960) Field, the Sessions, South (Woodbine A) Field, the Crossman (Woodbine 5900) Field, the Crossman (Woodbine 5980) Field or a Wildcat Field.

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Gregg County

Anadarko E&P Company LP will drill the Buford & Blow GU 3 Well No.10 in the Oak Hill (Cotton Valley) Field. This well will be located 11.1 miles southeast from Longview in the Walling, J Survey, A-239 with a depth of 12,000-feet.

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In a lease 2.5 miles east from Kilgore in the Danville (Travis-Peak Consolidated) Field, Samson Lone Star, LLC will drill an additional wel to a depth of 13,000-feet. The well will lie in the Wells, H Survey, A- 222. The well will be known as the Judge Daniels GU 1 Well No.25.

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Harrison County

In a lease four miles southwest from Nesbit in the Carthage, North (Bossier Shale) Field, the Sam B. Halls Gas Unit No.3 Well No.1H will be drilled by Forest Oil Corp. This well will lie in the Mc Kinney, D Survey, A-470 with a depth of 13,500-feet. The well may also be drilled in a Wildcat Field.

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The Rains Gas Unit No.1 Well No.2 will be drilled by NFR Energy, LLC six miles northwest from Crossroads in the Carthage, North (Bossier Shale) Field to a depth of 13,000-feet. The well will lie in the Rogers, B Survey, A-20. This well may also be drilled in the Hardwood (Cotton Valley) Field, or Wildcat Field.

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Forest Oil Corp. will prepare to drill the Charlie Bell Gas Unit 2 Well No.1 in the Carthage, North (Bossier Shale) Field. This well will be located four miles southeast from Marshall in the Campbell, J B Survey, A-148 with a depth of 13,500- feet.

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In a lease 9.6 miles southeast from Marshall, in the Carthage, North (Bossier Shale) Field, the Blocker Ware Well No.19H will be drilled by GMX Resources Inc. This well will bottom at 13,000-feet in the Williams, W Survey, A-757 and may also be drilled in the Carthage, North (Cotton Valley) Field.

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Panola County

Anadarko E&P Company LP will drill the Gary Gas Unit Well No.8 and the Holmes, Priestly Gas Unit Well No.20 in the Carthage (Cotton Valley) Field. The No.8 well will be located 0.9 miles southwest from Gary in the Shields, J Survey, A-588 with a depth of 12,000- feet. The No.20 well will be located six miles southeast from Carthage in the Childress, H C Survey, A-136 with a depth of 12,000-feet.

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Devon Energy Production Co, L.P. is preparing to drill the Carthage Gas Unit 112 Well No.13 and the Metcalf Gas Unit Well No.4 in the Carthage (Cotton Valley) Field. The No.13 will be drilled to a total depth of 12,500-feet 5.3 miles southwest From Carthage in the Francis, S Survey, A-197. The No.4 will be drilled to a total depth of 14,000-feet 10.2 miles northwest from Carthage in the Shields, W Survey, A-626.

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The J.G. S. (Rodess) Field will see the Complete Vacuum And Rental LLP drill the Harris SWD Well No.1 to a depth of 8,000-feet. The well will be located 11.5 miles southwest from Carthage in the Williams, J W Survey. A-744.

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In a lease 5.5 miles southeast from DeBerry, St.Mary Land Exploration Co. is preparing to drill an additional well to a depth of 11,000- feet in the Centennial, E. (Cotton Valley) Field. The well is designated the Hickey, F.S. Et Al Well No.13H. The well will lie in the Pearce, S Survey, A-525.

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The Pellham-Tompkins Gas Unit Well No.1 will be drilled by Dove Creek Energy, Inc. to a total depth of 10,500-feet. This well will be located five miles southwest from Beckville in the Carthae (Cotton Valley) Field. The well will lie in the Spencer, J Survey, A-589 and may also be drilled in a Wildcat Field.

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Rusk County

The Major Kennedy Estate Gas Unit Well No.25 will be drilled 19.6 miles northeast from Henderson in the Walling, J Survey, A-42. This well will be drilled to a depth of 12,000-feet by Anadarko E&P Company LP in the Oak Hill (Cotton Valley) Field.

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Goodrich Petroleum Co. will drill the Youngblood, Robert GU Well No.10 in the Henderson, East (Cotton Valley) Field. This well will be located 5.1 miles southeast from Henderson with a depth of 13,500- feet in the Piburn, J Survey, A-28. This well may also be drilled in the Minden (Travis Peak Consolidated) Field.

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The Ezim (Travis Peak) Field will see the Betty Kinney Well No.1 drilled to a depth of 13,000-feet by BRG Lone Star, Lt.d This well will be located seven miles east from Reklaw in the Stone, G Survey, A- 750. The well may also be drilled in a Wildcat Field, the Ezim (Pettit) Field or the Ezim (Rodessa) Field.

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In a lease 3.03 miles northwest from Minden in the Brachfield, Southeast (Cotton Valley) Field, the Birdwell Gas Unit Well No.1R will be drilled by Cabot Oil & Gas Corp. This well will bottom at 13,500-feet in the Reel, H Survey, A-32.

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Fidelity Exploration & Production Co. is preparing to drill the Harrell Gas Unit No.2 Well No.9 to a total depth of 12,000-feet in the Brachfield, Southeast (Cotton Valley) Field. The well will be located 2.07 miles east from Minden and will lie in the Moore, J Survey, A- 523.

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Smith County

Southwestern Energy Production Co. will drill the Wright Gas Unit 1 Well No.11H to a depth of 11,800-feet in the Overton (Cotton Valley Sand) Field. The well will be located 1.3 miles south from Arp in the Henriquez, M G Survey, A-11.

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Wood County

Exxon Mobil Corp. will drill the Hawkins Field Unit Well No.4557D in the Hawkins Field. This well will be drilled to a depth of 6,100-feet in the Mc Knight, A N Survey, A-399 0.44 miles southeast from Hawkins.

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COMPLETIONS

Cherokee County

When gauged on a 28/64-inch choke, Temple Eastex Gas Unit No.2 Well No.2 potentialed 151,000 cubic feet of natural gas in the Southern Price Field. The well bottomed at a depth of 11,401-feet and is located 14.6 miles southwest from Rusk drilled by Forest Oil Corp. Production of the well is in the Travis Peak formation.

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The Temple-Eastex Gas Unit No.3 Well No.4 has been completed by Forest Oil Corp. This well is located 15.1 miles west from Rusk with a depth of 10,955-feet in the Southern Pine Field. When gauged on a 48/64-inch choke, the well potentialed 374,000 cubic feet of gas. Production is in the Travis Peak formation.

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Wagner & Brown, Ltd. has completed the Northcutt GU Well No.4H in the Overton Field. This well bottoms at 15,040-feet one mile south of Troup. When gauged on a 1.75-inch choke, the well potentialed 5.445 million cubic feet of gas. Production is in the Cotton Valley formation.

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Gregg County

EXCO Operating Company, LP has completed the Griffin Ranch G.U. 3 Well No.13 to a depth of 11,000-feet in the Danville Field. This well is located 9.9 miles northeast from Kilgore. When gauged on a 24/64-inch choke, the well potentialed 1.122 million cubic feet of gas. Production is in the Travis Peak Consolidated formation.

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The Mackey Heirs Well No.9 is located 6.2 miles north from Longview with a depth of 10,884- feet. Dallas Production, Inc. has completed the well in the Willow Springs. When gauged on a 15/64- inch choke, the well potentialed 593,000 cubic feet of gas. Production is in the Travis Peak Transition formation.

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The Oak Hill Field has seen the Cherokee Water Company Well No.12 has been completed by SandRidge Explorationg and Production , LLC. This well bottoms at 10,840-feet 6.6 miles southeast from Lakeport. When gauged on a 22/64-inch choke, the well potentialed 2.969 million cubic feet of gas. Production is in the Cotton Valley formation.

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The A.J. Tuttle G.U. Well No.7-H is located four miles northwest from Longview in the Willow Springs Field. J-W Operating Co. has completed the well to a depth of 13,196-feet. When gauged on a 48/64-inch choke, the well potentialed 2.012 million cubic feet of gas. Production is in the Cotton Valley formation.

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Panola County

Tanos Exploration, LLC has completed the Bell Well No.2H to a total depth of 10,120-feet in the Beckville, North Field. The well is located 11.6 miles northwest from Carthage. When gauged on a 24/64- inch choke, the well potentialed 2.359 million cubic feet of gas. Production is in the Cotton Valley formation.

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The Carroll, A.E. Well No.2 is located seven miles southeast of Deadwood in the Belle Bower Field. Basa Resources, Inc. has completed the well to a depth of 9,964-feet. When gauged on a 48/64-inch choke, the well potentialed 125,000 cubic feet of gas. Production is in the Paluxy Upper formation.

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In a lease 1.9 miles southwest of Gary in the Carthage Field, the S. Gary Well No.1 has been completed by Preston Exploration. This well bottoms at 10,650-feet and potentialed 562,000 cubic feet of gas when gauged on a 20/64-inch choke. Production is in the Cotton Valley formation.

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Devon Energy Production Company, L.P. has completed the Thomas, Charles Well No.16, the Gales, Wiley Well No.3, the Thompson Unit Well No.9 and the Thompson Unit Well No.20. The No.16 is located 7.2 miles southwest from Carthage in the Carthage Field. Total depth is 9,714-feet. When gauged on an adjustable choke, the well potentialed 1.984 million cubic feet of gas. The No.3 is located 10.3 miles northeast of Carthage in the Carthage, North Field. Total depth is 9,953-feet. When gauged on an adjustable choke, the well potentialed 413,000 cubic feet of gas. Production is in Cotton Valley formation. The No.9 is located 2.9 miles northeast of Carthage in the Carthage Field. Total depth is 9,670-feet. When gauged on an adjustable choke, the well potentialed 220,000 cubic feet of gas. Production is in the Travis Peak-Blue formation. The No.20 is located 2.8 miles northeast of Carthage in the Carthage Field. Total depth is 9,725-feet. When gauged on an adjustable choke, the well potentialed 397,000 cubic feet of gas. Production is in the Cotton Valley formation.

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The F.S. Hickey et al Well No.11H is located 6.6 miles southeast from DeBerry in the Centennial, East Field. This well bottoms at 12,224-feet drilled by St. Mary Land & Exploration Co. When gauged on a 2-inch choke, the well potentialed 5.876 million cubic feet of gas. Production is in the Cotton Valley formation.

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Lacy Operations, Ltd. has completed the Burnett Unit 9 Well No.14 in the Briggs Field to a depth of 7,010-feet. When gauged on an adjustable choke, the well potentialed 2.561 million cubic feet of gas. Location is 8.30 miles north of Carthage. Production is in the Upper Travis Peak formation.

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When gauged on an adjustable choke, the Jeanette Harrell Well No.9H potentialed 5.260 million cubic feet of gas. This well was completed to a depth of 9,572-feet by Chevron U. S. A. Inc. Location is 9.3 miles west from Carthage. Production is in the Cotton Valley formation.

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Rusk County

When gauged on a 11/64-inch Choke, the Carter Hurst G.U. 1 Well No.2 potentialed 338,000-feet of gas in the Tatum, North Field. Location of the well is 2.6 miles north from Tatum and bottomed at a depth of 7,308-feet. H& T Exploration, Inc is in charge of the completion. Production is in the Travis Peak formation.

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The Williamson Unit Well No.11 is located 2.7 miles northwest from Tatum in the Oak Hill Field. Energen Resources Corp. has completed the well to a depth of 10,705- feet. This well potentialed 639,000 cubic feet of gas when gauged on a 48/64-inch choke. Production is in the Cotton Valley formation.

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Fidelity Exploration & Production Co. has completed the Harrell Gas Unit No.2 Well No.11 in the Brachfield, Southeast Field to a depth of 10,950-feet. This well is located 1.83 miles northeast from Minden and potentialed 677,000 cubic feet of gas when gauged on a 48/64-inch choke. Production is in the Cotton Valley formation.

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There have been two new wells completed by Goodrich Petroleum Co. The Youngblood, Robert GU Well No.9 is located 4.8 miles southeast of Henderson in the Henderson, East Field with a depth of 10,915-feet. This well was gauged on a 20/64-inch choke and potentialed 2.144 million cubic feet of gas. Production is in the Cotton Valley formation. The Youngblood, Robert GU Well No.8 is located 4.8 miles southeast of Henderson in a Wildcat Field with a depth of 11,646-feet. This well was gauged on a 18/64-inch choke and potentialed 676,000 cubic feet of gas.

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The West Phillips Gas Unit Well No.1-A is located 0.8 miles southwest from Long Beach in the Brachfield, Southeast Field. Total depth drilled by Cabot Oil & Gas Corp. is 11,224-feet. When gauged on a 22/64-inch choke, the well potentialed 343,000 cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on a 12/64-inch choke, the Carter Hurts G.U.1 Well No.3 potentialed 1.957 million cubic feet of gas. This well was completed 2.6 miles north from Tatum in the Tatum, North Field by H & T Exploration, Inc. Total depth is 7,402-feet. Production is in the Travis Peak formation.