EAST TEXAS DRILLING REPORT
DEVELOPMENTAL

Angelina County

The Angelina Lumber Well No.1 will be drilled 4.94 miles east from Wells in the Raintree (Hosston) Field. The well will be drilled to a depth of 12,300-feet in the Durst, J Survey, A-201.

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Cherokee County

The Armstrong Well No.2 will be drilled by Chesapeake Operating, Inc. in the Percy Wheeler (Travis Peak) Field. The well will be located 10.5 miles northeast from Jacksonville in the Jewell, R R Survey, A-455. This well will bottom at 12,000- feet and may also be drilled in a Wildcat Field.

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Gregg County

The Griffin Ranch G.U. 4 Well No.7 and the Griffin Ranch G.U. 4 Well No.8 will be drilled 5.3 miles northeast from Kilgore by Geo-Vest of Texas, Inc. The No.7 will be drilled in the Danville, East (Cotton Valley) Field with a depth of 11,000-feet. This well will lie in the Bradley, E Survey, A-17 and may also be drilled in the Danville (Travis Peak Consolidated) Field or a Wildcat Field. The No.8 will be drilled in the Danville (Pettit - AOil) Field with a depth of 8,000- feet. This well will lie in the Bradley, E Survey, A-17 and may also be drilled in the Danville (Gloyd) Field or a Wildcat Field.

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Henderson County

The Kris Perryman (Rodessa) Field will see the Catfish Creek #2 Well No.1 drilled by West Mountain Operating Company, Inc. The well will bottom at 12,000-feet in the Newland, J A Survey, A-576. Location will be 12 miles southeast from Athens. This well may also be drilled in the Fairway, West (Pettit) Field or a Wildcat Field.

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Rising Star Petroleum, L.L.C. will drill the McDonald Well No.2 in the Turlington Field. This well will bottom at 10,000- feet and will be located 3.2 miles northeast from Crossroads. This well will lie in the Riley, C Survey, A-688 and may also be drilled in the Tri-Cities (Pettit) Field or the Tri-Cities (Rodessa) Field.

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Nacogdoches County

The HGT Well No.2H will be located 5.6 miles northeast from Wells in the Loco Bayou (James Lime) Field. Southwestern Energy Production Co. will drill the well to a depth of 9,800- feet in the Ussury, N Survey, A- 572. This well may also be drilled in a Wildcat Field.

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In a lease three miles northeast from Melrose, in a Wildcat Field, the Astros Gas Unit Well No.2H will be drilled by Fossil Resources, Inc. The well will bottom at 14,500-feet in the Flores, Hrs. V. Survey, A-30 and may also be drilled in the Martinsville, Southeast (James) Field.

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Samson Lone Star, LLC will drill the H.G.T. Middlebrook GU 1 Well No.7, the H.G.T. Middlebrook GU 1 Well No.8 and the Mollie Melinda GU 1 Well No.6 in the Douglass, West (Travis Peak) Field. The wells will bottom at 12,000-feet. The No.7 and the No.8 will be located 9.5 miles northwest from Nacogdoches in the De Los Santos Coy, M & Bros. Survey, A-21. The No.7 well may also be drilled in a Wildcat Field, the Little Ears (Pettit Lime) Field or the Nacogdoches, East (James Lime) Field. The No.8 well may also be drilled in a Wildcat Field, the Miyagi (Pettit) Field or the Nacogdoches, East (James Lime) Field. The No.6 well will be drilled 4.5 miles northwest from Nacogdoches in the Dankworth, W Survey, A- 180 and may also be drilled in the Miyagi (Pettit) Field, the Little Ears (Pettit Lime) Field or a Wildcat Field.

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The Trawick Gas Unit 10 Well No.13 will be located 4.48 miles southeast from Cushing in the Trawick (Travis Peak) Field. The well will be drilled to a depth of 9,800-feet by Exxon Mobil Corp. in the Bennett, Z Survey, A-9. This well may also be drilled in the Trawick (Rodessa) Field, the Trawick (Pettit) Field, the Trawick (James) Field or a Wildcat Field.

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In a lease 12.7 miles northwest from Nacogdoches in a Wildcat Field, the M.K. Marshall GU Well No.3 will be drilled by Indigo Minerals LLC. This well will bottom at 11,000-feet in the Sacco, M Survey, A-49 and may also be drilled in the Douglass, West (Travis Peak) Field or the Douglass, West (Pettit Middle) Field.

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EOG Resources, Inc. is preparing to drill the Adams "A-1" Gas Unit Well No.8 in the Appleby, North (Travis Peak) Field. The well will bottom at 10,200-feet in the Acosta, J J Survey, A-65. This well may also be drilled in the Appleby, North (Pettit) Field.

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Rusk County

In a lease 5.8 miles southwest from Henderson in the Henderson, East (Cotton Valley) Field, the Alexander Heirs Gas Unit Well No.11 and the Alexander Heirs Gas Unit Well No.12 will be drilled by Forest Oil Corp. These wells will bottom at 11,500-feet in the Pena, M V Survey, A-27.

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Maximus Operating, Ltd. will drill the Zardouz Well No.1 in a Wildat Field. The well will be located 1.4 miles south from Elderville in the Massie, J W Survey, A-525. This well will bottom at a total depth of 7,500-feet and may also be drilled in the Danville (Pettit) Field or the John C. Robbins (Pettit) Field.

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The Oak Hill (Cotton Valley) Field will see the Omie Robertson Gas Unit 1 Well No.5 drilled by Valence Operating Co. The well will bottom at 13,500-feet in the Massie, J W Survey, A-529 2.6 miles southeast from Elderville. This well may also be drilled in the Carthage, North (Bossier Shale) Field, the Oak Hill (Pettit) Field or the Oak Hill (Travis Peak) Field.

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In a lease 3.7 miles southeast from Kilgore in the Danville (Travis Peak Consolidated) Field, the Lee, W.C. Well No.4 will be drilled by Encore Operating, L.P. The well will bottom at 9,900- feet in the George, S C Survey,l A-311.

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EOG Resources, Inc. is preparing to drill the Wallace-Rodgers Gas Unit Well No.1 in the Appleby, North (Travis Peak) Field. The well will bottom at 10,200- feet in the Morrison, J C Survey, A-517 and may also be drilled in the Appleby, North (Pettit) Field.

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Shelby County

The Joaquin (Travis Peak) Field will see the Hunt Well No.4 drilled by Hunt Petroleum Corp. to a depth of 8,900-feet. This well will be located one mile east from Joaquin in the Sojourner, J R Survey A-980.

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In a lease 1.5 miles south from Joaquin in the Joaquin (Travis Peak) Field, the Taylor, W.M. Well No.7 will be drilled by Classic Operating Company LLC. This well will bottom at 10,000- feet in the Pennington, S Survey, A-555.

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Johnson County

The Newark, East Field has seen a new well completed by Devon Energy Production Company, L.P. This well is located 9.82 iles southeast from Cleburne and bottoms at a total depth of 8,006- feet. When gauged on a 26/64- inch choke, the well potentialed 1.672 million cubic feet of natural gas. Production is in the Barnett shale formation.

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The Robert O. Smith Well No.1H is located 15.2 miles northeast from Cleburne in the Newark, East Field with a depth of 9,345-feet. This well was completed by Chesapeake Operating, Inc. The well was gauged on a 0.5-inch choke and potentialed 4.550 million cubic feet of gas. Production is in the Barnett Shale formation.

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EOG Resources, Inc. has completed six new wells in the Newark, East Field. The Hughes Well No.2H and the Hughes Well No.3H are located five miles southeast from Burleson. The No.2H bottoms with a depth of 7,732-feet and was gauged on a 64/64-inch choke, potentialing 7.572 million cubic feet of natural gas. The No.3H bottoms with a depth of 7,825-feet and was gauged on a 64/64-inch choke, potentialing 5.740 million cubic feet of natural gas. The King Well No.12H is located 3.4 miles northwest from Bono with a depth of 6,387-feet. When gauged on a 64/64-inch choke, the well potentialed 1.361 million cubic feet of natural gas. The Wilson Well No.2H and the Wilson Well No.3H are located 3.2 miles southwest from Lillian. The No.2H bottoms with a depth of 7,832-feet and potentialed 5.860 million cubic feet of natural gas when gauged on a 64/64-inch choke. The No.3H bottoms with a depth of 7,656- feet and potentialed 6.397 million cubic feet of natural gas when gauged on a 64/64-inch choke. The Wilkes Well No.2H is located 1.8 miles northeast from Godley with a depth of 6,747-feet and potentialed 3.138 million cubic feet of natural gas when gauged on a 64/64-inch choke. Production is in the Barnett Shale formation.

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The Flora Walker Well No.2H has been completed to a depth of 7,814-feet in the Newark, East Field. Chesapeake Operating, Inc. has drilled the well 14.6 miles northeast from Cleburne. When gauged on a 1-inch choke, the well potentialed 6.155 million cubic feet of natural gas. Production is in the Barnett Shale formation.

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Nacogdoches County

The Cecil Sparks GU 1 Well No.5 is located 15.5 miles east from Nacogdoches in the Martinsville Field. This well was completed to a depth of 10,770- feet by Samson Lone Star, LLC. When gauged on a 20/64-inch choke, the well potentialed 2.577 million cubic feet of natural gas. Production is in the Travis Peak formation.

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The Trawick Field has seen the Trawick Gas Unit 29 Well No.101 completed by Cabot Oil & Gas Corp. The well is located 2.8 miles northeast from Cushing with a depth of 12,687-feet. This well potentialed 940,000 cubic feet of natural gas when gauged on a 8/64-inch choke. Production is in the Jurassic formation.

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Rusk County

The Brachfield, Southeast Field has seen the Harrell Gas Unit No.1 Well No.9 completed by EnerVest Operating, L.L.C. This well is located 2.59 miles northeast from Minden with a depth of 10,881-feet. The well was gauged on a 24/64-inch choke and potentialed 1.919 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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Shelby County

The Morrison Davis Well No.2-H is located 4.70 miles southeast of Shelbyville in the Huxley Field. Hunt Petroleum Corp. completed the well to a depth of 6,772-feet and potentialed 3.419 million cubic feet of gas when gauged on a 17/64-inch choke. Production is in the 6100 formation.

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When gauged on a 17/64- inch choke, the Morrison Davis Well No.2-H potentialed 3.419 million cubic feet of gas. The well is located 4.70 miles southeast of Shelbyville in the Huxley Field. Hunt Petroleum Corp. has completed the well to a depth of 6,772-feet with production in the 6100 formation.

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