EAST TEXAS DRILLING REPORT
DEVELOPMENTAL

Cherokee County

The Chilton, Gene Well No.1 will be drilled by Dallas Production, Inc. in a Wildcat Field. The well will be located five miles north from Jacksonville in the Quevedo, T Survey, A-44. This well will bottom at 10,200-feet and may also be drilled in the Percy Wheeler (Travis Peak) Field.

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Parten Operating Inc. will drill the Moody Glass Well No.1 in a Wildcat Field. The well will be located three miles south from Jacksonville in the Ford, J Survey, A- 269. Total depth will be 5,200-feet.

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In a lease 15.2 miles west from Rusk in the Southern Pine (Travis Peak) Field, the Temple Eastex G.U. #1 Well No.5 will be drilled by Cordillera Texas, L.P. This well will bottom at 12,000-feet in the Mc Gregor, J Survey, A-34.

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Henderson County

Kraker & Martin Energy, L.L.C. will drill the No.1 Wall Well No.1 in the Ashley Mizer (Travis Peak) Field. This well will be located eight miles southeast from Brownsburough Survey, A-66 with a depth of 11,000-feet. This well may also be drilled in a Wildcat Field.

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Panola County

Longbranch Energy, LP will drill the Longbranch Disposal Well No.1 in the Carthage Field. The well will be located one mile east from Galloway in the Israel N. Burt Survey, A-90. This well will bottom at 5,500-feet.

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Chesapeake Operating, Inc. will drill the Reed, A. J. Estate Well No.4 in the Carthage, South (Cotton Valley) Field. The well will be located 9.3 miles southwest from Beckville in the Morris, W Survey, A-470. This well will bottom at 14,000-feet and may also be drilled in a Wildcat Field.

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In a lease 9.2 miles northwest from Carthage, in the Beckville, West (Cotton Valley) Field, the Searcy Gas Unit Well No.12 will be drilled by Anadarko E&P Company LP. The well will bottom at 12,000-feet in the Merriman, E T Survey, A-489.

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The Jones, A GU Well No.4 will be drilled 7.8 miles west from Beckville in the Beckville (Cotton Valley) Field. The well will be drilled to bottom at 11,500-feet by Goodrich Petroleum Co. This well will lie in the Turner, E E Survey, A- 678.

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Anadarko E & P Company LP will drill the Searcy Gas Unit Well No.17 in the Beckville, West (Cotton Valley) Field. This well will bottom at 12,000-feet in the Scott, T M Survey, A-594. Location will be 8.5 miles northwest from Carthage.

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In a lease 2.7 miles northeast from Carthage, in the Carthage (Cotton Valley) Field, the Youngblood Roe Unit Well No.23 will be drilled by Devon Energy Production Company, L.P. This well will bottom at 13,000-feet in the Scantlebury, W Survey, A-598.

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Rusk County

The Minden (Cotton Valley Consolidated) Field will see the Kangerga 2 Well No.3 drilled by El Paso E & P Company, L.P. The well will be located 2.7 miles southwest from Henderson in the Smith, J Survey, A-709 and will bottom at 11,500-feet. This well may also be drilled in a Wildcat Field.

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The Bolton Well No.1and the Birdwell Well No.2 will be drilled by Enduring Resources, LLC in the Brachfield, S.E. (Cotton Valley) Field. The Bolton Well No.1 will lie in a lease 2.7 miles southwest from Minden and will bottom at 11,300- feet in the Hughes, T M Survey, A- 423. This well may also be drilled in a Wildcat Field, the Minden (Cotton Valley Consolidated) Field or the Minden (Travis Peak Consolidated) Field. The Birdwell Well No.2 will be drilled 2.1 miles northwest from Minden and will bottom at 11,300-feet in the Del Rio, S Survey, A-34. This well may also be drilled in the Minden (Travis Peak Consolidated) Field or a Wildcat Field.

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Shale Tank Truck, L.P. will prepare to drill the Reynolds Well No.2D in the Minden (Rodessa) Field. This well will bottom at 7,000-feet five miles south from Henderson in the Howeth, T Survey, A-382.

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There will be two additional wells drilled by El Paso E & P Company, L.P. The Holt, Jack Well No.3 will be located 2.9 miles southeast from Henderson in the Pollett, E Survey, A-622. This well will bottom at 11,200-feet in the Minden (Travis Peak Consolidated) Field and may also be drilled in the Minden (Cotton Valley Consolidated) Field or a Wildcat Field. The Viper 1 Well No.6 will be located five miles southeast from Henderson in the Jackson, T J Survey, A-15. This well will bottom at 12,100-feet in the Minden (Cotton Valley Consolidated) Field and may also be drilled in the Minden (Travis Peak Consolidated) Field.

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The Brachfield, Southeast (Cotton Valley) Field will see the Childers Well No.1, the Tufco Gas Unit 1 Well No.6 and the Sparkman Taylor Gas Unit Well No.1 drilled by Enduring Resources, LLC. The Childers Well No.1 will be located 4.8 miles northwest from Long Branch in the Long F M Surv A-498. The Tufco Gas Unit 1 Well No.6 will be located 1.1 miles northwest from Minden in the Del Rio, S Survey, A-34. The Sparkman Taylor Gas Unit Well No.1 will be located 1.5 miles southwest from Minden in the Logan, O Survey, A-509. The Childers Well No.1 and the Tufco Gas Unit 1 Well No.6 may also be drilled in a Wildcat Field, the Minden (Cotton Valley Conoslidated) Field or the Minden (Travis Peak Consolidated) Field. The Sparkman-Taylor Gas Unit Well No.1 may also be drilled in a Wildcat Field or the Minden (Travis Peak Consolidated) Field.

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In a lease 3.9 miles northwest from Garrison in the Appleby, North (Travis Peak) Field, the Reeves Gas Unit Well No.5 will be drilled by EOG Resources, Inc. The well will bottom at 10,000-feet in the Acosta, J J Survey, A-52. This well may also be drilled in the Appleby, North (Pettit) Field.

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Smith County

Southwestern Energy Production Co. is preparing to drill the Jesse Randolph Odom Gas Unit 1 Well No.17 in the Overton (Cotton Valley Sand) Field. The well will bottom at 12,700-feet in the George, W Survey, A-1099 0.8 miles southwest from Troup. This well may also be drilled in a Wildcat Field.

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Anderson County

The Cartmell Foundation Well No.4 is located 3.2 miles southwest of Palestine in the Long Lake Field. This well bottoms at 5,468-feet and flowed with 30.1 barrels of crude when gauged on a 8/64-inch choke. Falcon Resources, Inc. has completed the well.

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Panola County

The Long Branch Well No.5 D has been completed by Basa Resources, Inc. in the Brady-Panola Field with a depth of 6,000-feet. Location of this well is six miles southwest from Clayton. No test data recorded. Production is in the Blossom formation.

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When gauged on an adjustable choke, the Adams, T.C. NCT-1 G Well No.1T potentialed 2,000 cubic feet of natural gas. This well is located 5.4 miles from DeBerry in the Bethany, East Field. Total depth is 6,321-feet with production in the Pettit formation.

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Anadarko E & P Company LP has completed the Hancock, J.F. Unit Well No.12 and the CGU 14 Well No.19 in the Carthage Field. The No.12 well is located 5.1 miles southeast of Carthage with a depth of 9,623-feet. When gauged on an adjustable choke, the well potentialed 1.012 million cubic feet of gas. The No.19 well is located 2.6 miles northwest of Carthage with a depth of 9,756-feet. When gauged in an adjustable choke, the well potentialed 1.299 million cubic feet of gas. Production is in the Cotton Valley formation.

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The Williamson Well No.21 and the Mauritzen, J.C. Well No.8 have been completed by Devon Energy Production Company, L.P. in the Carthage Field. The No.21 is located 3.7 miles southwest from Carthage and bottoms at 9,548- feet. This well was gauged on an adjustable choke and potentialed 1.578 million cubic feet of natural gas. The No.8 is located 9.5 miles southwest from Carthage and bottoms at 9,750-feet. This well was gauged on an adjustable choke and potentialed 2.477 million cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on a 28/64-inch choke, the Holland Gas Unit No.1 Well No.1-T potentialed 972,000 cubic feet of natural gas. This well was drilled 1.7 miles southeast from Fair Play in the Carthage Field by Craton Energy Holdings III, LP. The well bottoms at 10,080-feet with production in the Cotton Valley formation.

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Craton Energy Holdings III, LP has completed the Holland Gas Unit No.1 Well No.1-C in the Carthage Field. This well is located 1.7 miles southeast from Fair Play with a depth of 10,080-feet and potentialed 544,000 cubic feet of natural gas when gauged on a 48/64- inch choke. Production is in the Travis Peak formation.

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The Briggs Unit 1 Well No.9 is located 5.1 miles northeast of Beckville in the Carthage Field. The well was drilled to a depth of 9,970- feet by Lacy Operations, Ltd. This well potentialed 1.240 million cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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When gauged on a 18/64-inch choke, the Floyd Gas Unit Well No.23 potentialed 418,000 cubic feet of gas. This well is located four miles east of DeBerry in the Bethany, East Field XTO Energy Inc. has completed the well to a depth of 9,410-feet. Production is in the Cotton Valley formation.

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Chevron U.S.A. Inc. has completed the Bettie Crenshaw Well No.3 in the Carthage Field. The well is located 3.5 miles southeast from DeBerry with a depth of 7,700-feet. The well was gauged on a 14/64-inch choke and potentialed 516,000 cubic feet of natural gas. Production is in the Travis Peak 6400 formation.

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The Chadwick Unit Well No.13-L has been completed by Devon Energy Production Company, L.P. in the Carthage Field. The well is located 3.6 miles north of Carthge with a depth of 8,000-feet. When gauged on an adjustable choke, the well potentialed 471,000 cubic feet of natural gas. Production is in the Travis Peak formation.

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When gauged on a 32/64-inch choke, the Maude 2 Unit Well No.15 potentialed 1.507 million cubic feet of natural gas. This well is located 9.2 miles southeast from Carthage in the Carthage Field. ConocoPhillips Co. has completed the well to a depth of 9,555-feet. Production is in the Cotton Valley formation.

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Rusk County

The KCR Timberland Ltd. Well No.1 has been completed by Machin & Associates in the Pleasant Grove Field. This well is located 13.5 miles southwest from Henderson with a depth of 4,150-feet. When gauged on a 12/64-inch choke, the well flowed with 59 barrels of crude.

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Enduring Resources, LLC has completed the TXU Gas Unit Well No.3 in the Brachfield, Southeast Field. The well is located 1.4 miles northwest of Minden with a depth of 10,920-feet. When gauged on an adjustable choke, the well potentialed 909,000 cubic feet of gas. Production is in the Cotton Valley formation.

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In a lease 3.24 miles southwest from Long Branch in the Brachfield, Southeast Field, the Kennedy Gas Unit Well No.3 has been completed by Cabot Oil & Gas Corp. This well bottoms at 10,620-feet and potentialed 728,000 cubic feet of natural gas when gauged on a 38/64-inch choke. Production is in the Cotton Valley formation.

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The Forbus Estate Gas Unit Well No.11 and the Barbara Oil Unit No.1 Well No.1 have been completed by Samson Lone Star, LLC. The No.11 is located nine miles northeast from Henderson with a depth of 10,732-feet in the Oak Hill Field. This well potentialed 1.027 million cubic feet of gas when gauged on a 30/64-inch choke. Production is in the Cotton Valley formation. The No.1 is located 5.5 miles west from Mt. Enterprise with a depth of 8,865-feet in the Trawick, North Field. This well flowed with five barrels of crude when gauged on a 48/64- inch choke. Production is in the Transition formation.

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Coronado Energy E & P Company, L.L.C. has completed the Wesson GU Well No.6 in the Henderson, East Field. The well bottoms at 11,000-feet and is located three miles southwest from Henderson. When gauged on a 10/64- inch choke, the well potentialed 1.713 million cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on a 24/64-inch choke, the Arnold Estate Unit 1 Well No.3 potentialed 475,000 cubic feet of natural gas. This well was completed to a depth of 10,415- feet in the Oak Hill Field by Comstock Oil & Gas, LP. Location of the well is 4.5 miles north from Tatum. Production is in the Cotton Valley formation.

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There has been six additional wells completed in the Brachfield, Southeast Field by Cabot Oil & Gas Corp. The Cyphers Gas Unit Well No.3 is located 3.24 miles west from Long Branch with a depth of 11,680-feet. This well potentialed 767,000 cubic feet of natural gas when gauged on a 48/64- inch choke. The White Gas Unit Well No.5 is located 5.63 miles northeast from Minden with a depth of 11,482-feet. This well potentialed 733,000 cubic feet of natural gas when gauged on a 22/64- inch choke. The White Gas Unit Well No.4 is located 5.7 miles northeast from Minden with a depth of 10,747-feet. This well was gauged on a 34/64-inch choke and potentialed 1.697 million cubic feet of natural gas. The Kennedy Gas Unit Well No.4 is located 3.6 miles southwest from Long Branch with a depth of 11,364-feet. This well potentialed 1.462 million cubic feet of gas when gauged on a 32/64-inch choke. The Cyphers Gas Unit Well No.2 is located 3.05 miles northwest from Long Branch with a depth of 11,354-feet. When gauged on a 28/64-inch choke, the well potentialed 1.058 million cubic feet of natural gas. The White Gas Unit Well No.2 is located 5.73 miles northeast of Minden with a depth of 10,678-feet. This well potentialed 825,000 cubic feet of natural gas when gauged on a 36/64-inch choke. Production is in the Cotton Valley formation.

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Smith County

The Sallie M. Warren Heirs Gas Unit 1 Well No.08 has been completed by Southwestern Energy Production Co. in the Overton Field. This well is located 2.2miles northwest from Troup with a depth of 12,260-feet. This well potentialed 2.337 million cubic feet of gas when gauged on a 26/64-inch choke. Production is in the Cotton Valley Sand formation.

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There has been seven additional wells completed in the Newark, East Field by XTO Energy Inc. The TRBP Railhead Unit Well No.1H is located 5.5 miles north from Fort Worth with a depth of 8,760-feet. This well potentialed 3.394 million cubic feet of gas when gauged on a 32/64-inch choke. The TRBP Well No.1H is located 5.5 miles northeast from Fort Worth with a depth of 9,045-feet. The well was gauged on a 16/64-inch choke and potentialed 2.178 million cubic feet of gas. The Johnson Ranch Well No.D 1H is located 1.2 miles northwest from Benbrook with a depth of 11,023-feet. When gauged on a 38/64-inch choke, the well potentialed 1.235 million cubic feet of gas. The Johnson Ranch Well No.F 3H is located 1.3 miles northwest from Benbrook with a depth of 10,390-feet. This well was gauged on a 64/64-inch choke and potentialed 3.168 million cubic feet of gas. The Kimbrough XTO Unit Well No.1H is located 1.2 miles northeast from Azle with a depth of 10,142-feet. The well potentialed 1.615 million cubic feet of gas. The Panagopolous Unit Well No.2H is located 2.6 miles northeast from Burleson with a depth of 10,384- feet. The well potentialed 5.244 million cubic feet of gas when gauged on a 50/64-inch choke. The Duncan Well No.1H bottoms at 6,996-feet, no location was recoreded. This well was gauged on a 1-inch choke and potentialed 2.149 million cubic feet of gas. Production is in the Barnett Shale formation.

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Upshur County

The Gladewater GU 19 Well No.12 and the S.P. Victory Gas Unit Well No.9 have been completed by TXOK Texas Energy Resources, LP in the Glenwood Field. The No.12 well is located five miles northeast of Gladewater and bottoms at 11,043-feet. This well was gauged on a 18/64-inch choke and potentialed 172,000 cubic feet of natural gas. The No.9 well is located 0.5 miles north of Gladewater and bottoms at 11,044-feet. This well was gauged on a 20/64-inch choke and potentialed 524,000 cubic feet of gas. Production is in the Cotton Valley formation.