EAST TEXAS DRILLING REPORT
DEVELOPMENTAL

Cherokee County

Cordillera Texas, L.P. will drill the Southern Pine GU #1 Well No.5 and the Southern Pine GU #3 Well No.2. The No.5 will be located 13.4 miles west from Rusk in the Southern Pine (Travis Peak) Field. The well will lie in the Fontain, J H Survey, A-287 with a total depth of be 12,000-feet. The No.2 will be located 15.6 miles west from Rusk in a Wildcat Field. The well will lie in the Thompson, M/Stevenson, J E Survey, A-1065 with a depth of 11,500-feet. This well may also be drilled in the Southern Pine (Travis Peak) Field.

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Gregg County

The Griffin Ranch G.U. 2 Well No.15 will be drilled by Geo-Vest of Texas, Inc. This well will be located 4.2 miles northeast from Kilgore in the Danville, East (Cotton Valley) Field. The well will bottom at 11,000-feet in the Edwards, H Survey, A-64 and may also be drilled in the Danville (Travis Peak Consolidated) Field or a Wildcat Field.

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There will be four new wells drilled by Geo-Vest of Texas, Inc. in the Edwards, H Survey, A-64. The Griffin Ranch G.U. 2 Well No.17 will be drilled 4.6 miles northeast from Kilgore in the Danville, East (Cotton Valley) Field. This well will bottom at 11,000-feet and may also be drilled in the Danville (Travis Peak Consolidated) Field or a Wildcat Field. The Griffin Ranch G.U.2 Well No.18 will be drilled 4.6 miles snortheast from Kilgore in the Danville (Pettit - A- Oil) Field. This well will bottom at 8,000-feet and may also be drilled in the Danville (Gloyd) Field, a Wildcat Field or the Danville (Young) Field. The Griffin Ranch G.U.2 Well No.19 will be drilled 4.8 miles northeast from Kilgore in the Danville, East (Cotton Valley) Field. This well will bottom at 11,000-feet and may also be drilled in the Danville (Travis Peak Consolidated) Field or a Wildcat Field. The Griffin Ranch G.U. 2 Well No.20 will be drilled 4.8 miles northeast from Kilgore in the Danville (Pettit - A- Oil) Field. This well will bottom at 8,000-feet and may also be drilled in the Danville (Gloyd) Field, the Danville (Young) Field or a Wildcat Field.

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In a lease 4.2 miles northeast from Kilgore, in the Danville (Pettit- A- Oil) Field, the Griffin Ranch G.U.2 Well No.16 will be drilled by Geo-Vest of Texas, Inc. The well will bottom at 8,000-feet in the Edwards, H Survey, A-64 and may also be drilled in the Danville (Gloyd) Field, a Wildcat Field or the Danville (Young) Field.

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The Judge Daniels Gas Unit 1 Well No.10 will be located 2.5 miles east from Kilgore in the Danville (Travis Peak-Cotton Valley Consolidated) Field. Samson Lone Star, LLC will drill the well to a depth of 13,000-feet in the Walker, P Survey, A-210. This well may also be drilled in a Wildcat Field.

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Panola County

The Hancock Unit Well No.16, the Southland Paper Co. Well No.21 and the Metcalf Gas Unit Well No.2 will be drilled by Devon Energy Production Company, L.P. in the Carthage (Cotton Valley) Field. The No.16 well will be located 8.6 miles southwest from Carthage with a depth of 11,000-feet in the Kelly, T Survey, A-372. The No.21 will be located 5.7 miles southwest from Carthage with a depth of 12,000-feet in the Hanks, I Survey, A-271. The No.2 well will be located 3.9 miles northeast from Carthage in the Morris, D Survey, A-463 and will bottom at 14,000-feet.

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Enduring Resources, LLC will drill the West Phillips Gas Unit Well No.1 in the Brachfield, Southeast (Cotton Valley) Field. This well will be located 0.8 miles southwest from Long Branch in the Mc Adams, J Survey, A-422 and this well may also be drilled in the Minden (Travis Peak Consolidated) Field or a Wildcat Field.

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Chesapeake Operating, Inc. will drill the Donald, F.H. Well No.12, the Fred Kyle Unit Well No.14 and the A.L. Davis Gas Unit Well No.16 in the Carthage (Cotton Valley) Field. The No.12 will be located 3.6 miles southeast from Carthage in the Payne, M Survey, A-526. The No.14 will be located 4.6 miles southeast from Carthage in the Ashton, M Survey, A-8. The No.16 will be located 3.3 miles south from Carthage in the Shields, L Survey, A-605. These wells will bottom at 12,000-feet. The No.14 may also be drilled in a Wildcat Field.

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The CGU 5 Well No.15 and the CGU 8 Well No.19H will be drilled in the Carthage (Cotton Valley) Field by Anadarko E&P Company LP. The wells will bottom at 12,000-feet. The No.15 will be located 3.5 miles southwest from Carthage in the Smith, M Survey, A-607. The No.19H will be located 3.8 miles southwest from Carthage in the Witherspoon, A M Survey, A-732.

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In a lease 9.3 miles southeast from Carthage in the Carthage (Cotton Valley) Field, the Pitts A Unit Well No.12 will be drilled by ConocoPhillips Co. This well will bottom at 10,100-feet in the Tippett, J Survey, A-666.

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XTO Energy Inc. will drill the Roquemore Gas Unit "D" Well No.25 in the Bethany (Travis Peak Consolidated) Field to a depth of 12,000-feet. This well will be located 3.3 miles northeast from De Berry in the Jordan, B C Survey, A-348. This well may also be drilled in the Bethany, East (Cotton Valley) Field.

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Chesapeake Operating, Inc. is preparing to drill the J. C. Brown Gas Unit Well No.17 and the Thomas & Wood Well No.15 in the Carthage (Cotton Valley) Field. The No.17 well will be located 4.3 miles southeast from Carthage in the Neely, W A Survey, A-514. The No.15 well will be located 2.6 miles southeast from Carthage in the Goodwin, G Survey, A-224. These wells will bottom at 14,000-feet and may also be drilled in a Wildcat Field.

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In a lease 1.25 miles north from Joaquin in the Joaquin (Wiener) Field, the Preston Hart Unit Well No.2 will be drilled by Classic Operating Company LLC. The well will bottom at 10,000-feet in the Smith, M Survey A-592. This well may also be drilled in the Carthage (Cotton Valley) Field or a Wildcat Field.

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Rusk County

GMT Exploration Company Texas, LLC will drill the Schwartz Well No.1 in the Naconiche Creek (Rodessa-Travis Peak Consolidated) Field. This well will be located 5.8 miles southeast from Garrison in the Kelley, R Survey, A-469 and will bottom at 11,000-feet.

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The Morgan Estate Gas Unit Well No.3 is being prepared for drilling in the Oak Hill (Cotton Valley) Field. NFR Energy, LLC will drill the well 11,500-feet in the Watkins, J Survey, A-807 2.16 miles south from New Hope.

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In a lease 5.9 miles southwest from Tatum, in a Wildcat Field, the C E Williamson Heirs Gas Unit Well No.11 will be drilled by Verado Energy, Inc. The well will bottom at 12,000-feet in the Watson, D Survey, A-863. This well may also be drilled in the Oak Hill (Cotton Valley) Field.

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The Oak Hill (Cotton Valley) Field will see the Oak Hill G.U. 1 Well No.1 drilled by Chinn Exploration Co. This well will bottom at 11,250-feet in the Thomas O'Bar Survey, A-26. Location will be 20.9 miles east from Henderson.

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National Onshore LP will drill the David Brown Gas Unit 1 Well No.10 in the Minden (Cotton Valley Consolidated) Field. This well will be located 6.2 miles southeast from Henderson in the Doubt, D Survey, A-234 with a depth of 12,000-feet. This well may also be drilled in the Minden (Travis Peak Consolidated) Field, the Miden (Cotton Valley Lime) Field or a Wildcat Field.

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The Williamson Unit Well No.9 will be located 2.7 miles northwest from Tatum in the Oak Hill (Cotton Valley) Field. The well will be drilled by Energen Resources Corp. to a depth of 11,00-feet in the O'Bar, T Survey A-26.

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Panola County

When gauged on an adjustable choke, the Beckworth Unit Well No.17 potentialed 404,000 cubic feet of natural gas. This well is located 8.8 miles northeast of Carthage. Devon Energy Production Company, L.P. completed the well to a depth of 9,895-feet in the Carthage Field. Production is in the Cotton Valley formation.

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Sendero Energy, Inc. has completed the Werner-Matthews Well No.5 in the Eas Centennial Field to a depth of 9,775-feet. This well is located 5.5 miles southeast of DeBerry. When gauged on a 24/64-inch choke, the well potentialed 344,000 cubic feet of gas. Production is in the Cotton Valley formation.

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Rusk County

The Harrell Gas Unit No.1 Well No.10 has been completed 2.24 miles northeast from Minden in the Brachfield, Southeast Field. EnerVest Operating, L.L.C. has completed the well to a depth of 10,796-feet. This well was gauged on a 48/64-inch choke and potentialed 1.979 million cubic feet of gas. Production is in the Cotton Valley formation.

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Smith County

The Overton Field has seen the Milton Anderson Gas Unit 1 Well No.17 completed by Southwestern Energy Production Co. to a depth of 11,810-feet. Locatioin is 3.5 miles southwest from Arp. When gauged on a 24/64-inch choke, the well potentialed 1.979 million cubic feet of natural gas. Production is in the Cotton Valley Sand formation.

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Upshur County

Southwestern Energy Production Company has completed the Stout Well No.1 in a Wildcat Field. Location is 13.6 miles northwest from Gilmer. Total depth is 11,900-feet. No test data recorded.

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