EAST TEXAS DRILLING REPORT
DEVELOPMENTAL

Cherokee County

The Overton (Cotton Valley Sand) Field will see the Afton Thrash Unit 1 Well No.14 by Southwestern Energy Production Co. This well will bottom at 12,600-feet in the Pool, W Survey, A-718 and will be located 2.5 miles northeast from Mixon. This well may also be drilled in the Troup (Travis Peak) Field or a Wildcat Field.

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XTO Energy Inc. is preparing to drill the Chronister Heirs Well No.11 in the Doyle Creek (Travis Peak) Field. The well will be located 7.4 mles northwest from Wells in the Durst, J Survey, A-15 and will bottom at 12,800-feet. This well may also be drilled in the Doyle Creek (Pettit) Field.

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Harrison County

The Crawford Gas Unit Well No.3, the Crawford Gas Unit Well No.4, the Crawford Gas Unit Well No.5 and the Crawford Gas Unit Well No.6 will be drilled by Penn Virginia Oil & Gas, L.P. in the Carthage, North (Cotton Valley) Field. The wells will bottom at 13,000-feet in the Wray, J S Survey, A-759. All four wells will be located 13.2 miles southeast from Marshall.

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Samson Lone Star, LLC will drill the Woodley GU 1 Well No.1 in the Waskom (Cotton Valley) Field to a depth of 13,000-feet. This well will be located four miles northwest from Elysian Field in the Smith, W Survey, A-21. This well may also be in a Wildcat Field.

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In a lease 18.7 miles northwest from Marshall in the Lansing, North (Cotton Valley) Field, the Pearce Well No.2H will be drilled by Tanos Exploration, LLC. This well will bottom at 10,651-feet in the Wyatt, A B Survey, A-796.

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Forest Oil Corp. will drill the Osborne Heirs Well No.3 in the Hardwood (Cotton Valley) Field. This well will be located 11 miles southeast from Marshall in the Gamblin, Hrs J Survey, A-281. Total depth will be 11,500-feet.

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The Blocker Heirs Well No.11D will be drilled by GMX Resources Inc. The well will be located eight miles southeast from Marshall in the Carthage, North (Cotton Valley) Field. This well will bottom at 11,800-feet in the Ussury, M S Survey, A-722.

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There will be three new wells drilled by Penn Virginia Oil & Gas, L.P. in the Carthage, North (Cotton Valley) Field. The Thompson Well No.2, the Thompson Well No.3 and the Thompson Well No.4 will be located 3.9 miles northeast from Crossroads in the Cellum, J Survey, A-145. The No.2 and the No.4 will bottom at 13,000-feet. The No.3 will bottom at 12,000-feet.

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GMX Resources Inc. will drill the Cadenhead Well No.14D and the Sanders Moore Well No.6D in the Carthage, North (Cotton Valley) Field. The wells will bottom at 11,800-feet. The No.14D well will be located ten miles southeast from Marshall in the Williams, W Survey, A-757. This well may also be drilled in a Wildcat Field, the Bethany (Travis Peak Consolidated) Field or the Bethany (Pettit 6170) Field. The No.6D well will be located 8.7 miles southeast from Marshall in the Ussury, M S Survey, A-722. This well may also be drilled in a Wildcat Field, the Bethany (Page Sand) Field or the Bethany (Travis Peak Consolidated) Field.

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In a lease 1.6 miles east from Hallsville, in the Oak Hill (Cotton Valley) Field, the Hallsville ISD Gas Unit Well No.4 will be drilled by NEG Operating LLC. This well will bottom at 12,000-feet in the Holbert, J Survey, A-305 and may also be drilled in a Wildcat Field.

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Devon Energy Production Company, L.P. is preparing to drill the Smith-Lindsey Unit Well No.2 and the Smith-Lindsey Unit Well No.3 H in the Waskom (Cotton Valley) Field. Both wells will bottom at 13,000-feet and will be located 6.2 miles southwest from Waskom in the Brookfield, W C Survey, A-2.

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Rusk County

The W.H. Siler Well No.1 will be drilled by Davis Oil & Gas, LLC in a Wildcat Field. The well will bottom at 12,200-feet in the Walker, M Survey, A-826. Location will be 8.7 miles west from Henderson.

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Forest Oil Corp. will drill the Alexander Heirs Gas Unit Well No.10H and the Harmon Gas Unit No.1 Well No.7 in the Henderson, East (Cotton Valley) Field. The No.10H well will be located 5.3 miles southwest from Henderson. The No.7 well will be located 5.8 miles northwest from Henderson. Total depth will be 11,500-feet in the Pena, M V Survey, A-27.

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The C.E. Guy Well No.1 and the W.O. Ashby Well No.1 will be drilled by SDG Operating Company, Inc. in a Wildcat Field. The wells will bottom at 8,800-feet. The C.E. Guy Well No.1 will lie in the Roth, J Survey, A-36 ten miles southwest from Henderson. The W.O. Ashby Well No.1 will lie in the Mc Donald, T Survey, A-21 ten miles southwest from Henderson. These wells may also be drilled in the Scoober Creek (Travis Peak) Field.

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In a lease 4.6 miles southeast from Henderson, in a Wildcat Field, the Viper 3 Well No.5 will be drilled by El Paso E & P Company, L.P. This well will bottom at 12,500-feet in the Jackson, T J Survey, A-15. This well may also be drilled in the Minden (Travis Peak Consolidated) Field or the Minden (Cotton Valley Consolidated) Field.

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The Barton, Susan Well No.2 will be drilled by EnerQuest Corp. in a Wildcat Field. The well will bottom at 9,500-feet 1.8 miles north from Garrison in the Hilton, H Survey, A-369. This well may also be drilled in the Garrison (Travis Peak) Field.

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The Henderson, East (Cotton Valley) Field will see the O E Flanag Well No.2 drilled by Princess Three Operating, LLC. The well will be located 0.05 miles east from Henderson in the Wright, T L Survey, A-820 and will bottom at 11,000-feet.

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National Onshore LP will drill the Powell Gas Unit No.1 Well No.17 to a depth of 12,000-feet in a Wildcat Field. The well will be drilled five miles southeast from Henderson in the Jones, J F Survey, A-461. This well may also be drilled in the Minden (Cotton Valley Consolidated) Field or the Minden (Travis Peak Consolidated) Field.

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Enduring Resources, LLC will drill two new wells in the Brachfield, Southeast (Cotton Valley) Field. The Jarrell Gas Unit Well No.1 will be drilled in a lease 3.1 miles northwest from Minden in the Birdwell, G Survey, A-108. The Hays Gas Unit Well No.1 will be drilled in a lease 2.3 miles northwest from Minden in the Yarbrough, R Survey, A- 884. The wells will bottom at 11,300-feet and may also be drilled in a Wildcat Field or the Minden (Travis Peak Consolidated) Field.

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Smith County

In a lease 2.5 miles northwest from Arp in the Overton (Cotton Valley Sand) Field, the Dyer Gas Unit Well No.3H will be drilled by Wagner & Brown, Ltd. This well will bottom at 12,200-feet in the Lockhart, W Survey, A-563.

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Van Zandt County

The Chandler Well No.3 will be drilled two miles west from Ben Wheeler in a Wildcat Field. The well will be drilled by Parten Operating Inc. to bottom at 8,200-feet in the Hollingsworth, B Survey, A-411.

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Angelina County

The J. W. Sessions Heirs Well No.16H has been completed by Southwestern Energy Production Co. This well is located 3.8 miles north northeast from Wells with a depth of 9,570-feet in the Loco Bayou Field. When gauged on an open choke, the well potentialed 6.700 million cubic feet of gas. Production is in the James Lime formation.

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When gauged on a 24/64-inch choke, the Angelina Lumber Company Well No.3 potentialed 130,000 cubic feet of natural gas. This well is located ten miles south to Lufkin in the Redland, Northeast Field. Palmer Petroleum, Inc. has completed the well to a depth of 11,575-feet. Production is in the Travis Peak formation.

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Freestone County

The Henderson-Lott No.1 Gas Unit Well No.10 and the Kirsch Gas Unit Well No.12 have been completed by XTO Energy in the Teague Field. The No.10 is located 5.10 miles southwest from Fairfield and bottoms at 12,857-feet. When gauged on a 14/64-inch choke, the well potentialed 1.384 million cubic feet of gas. The No.12 is located five miles northeast from Teague and bottoms at 12,147-feet. When gauged on a 18/64-inch choke, the well potentialed 2.214 million cubic feet of gas. Production is in the Cotton Valley-Bossier Consolidated formation.

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In a lease 6.6 miles west from Oakwood in the Dowdy Ranch Field, the Louetta Parker "A" Well No.5 has been completed by Anadarko Petroleum Corp. This well bottoms at 15,500-feet and potentialed 8.329 million cubic feet of gas when gauged on a 48/64-inch choke. Production is in the Cotton Valley formation.

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Valence Operating Co. has completed two new wells in the Nan-Su-Gail Field. The Williford "E" Well No.14 is located 4.6 miles north of Fairfield and bottoms at 12,634-feet. When gauged on a 48/64-inch choke, the well potentialed 1.406 million cubic feet of natural gas. The Metzgar Well No.5 is located 4.4 miles north of Fairfield and bottoms at 12,745-feet. When gauged on a 48/64-inch choke, the well potentialed 472,000 cubic feet of natural gas. Production is in the Cotton Valley Consolidated formation.

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The Horton Gas Unit Well No.1 has been completed in the Teague Field by XTO Energy Inc. The well is located 5.10 miles northwest of Teague with a depth of 11,854-feet. When gauged on a 24/64-inch choke, the well potentialed 100,000 cubic feet of gas. Production is in the Cotton Valley- Bossier Consolidated formation.

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Gregg County

In a lease 4.9 miles southwest from Longview, in the Willow Springs Field, the J.M. Dickson Well No.3 will be drilled by Neumin Production Co. This well bottoms at 11,000-feet and potentialed 730,000 cubic feet of gas when gauged ona 14/64-inch choke. Production is in the Cotton Valley formation.

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Harrison County

The Martin Heirs Well No.3 is located 3.9 miles southeast from Marshall in the Ware Field. Valence Operating Co. has completed the well to a depth of 11,786-feet. When gauged on a 30/64-inch choke, the well potentialed 650,000 cubic feet of natural gas. Production is in the Cotton Valley formation.

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River Stone Energy Operating, LLC has completed the Jones Well No.2-A in the Bethany Field. This well is located 5.2 miles southeast of Scottsville with a depth of 9,800- feet. When gauged on a 16/64-inch choke, the well potentialed 2.022 million cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on a 14/64-inch choke, the Huffman Smith Well No.1 potentialed 750,000 cubic feet of natural gas. The well was completed in the Bethany Field by River Stone Energy Operating, LLC to a depth of 9,800-feet. This well is located 5.94 miles to Scottsville. Production is in the Cotton Valley formation.

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The Woodlawn Field has seen the Durkee Gas Unit No.1 Well No.3 completed by Tony W. Clemons. This well is located 5.6 miles north of Marshall with a depth of 10,040-feet. This well potentialed 271,000 cubic feet of gas when gauged on a 12/64-inch choke. Production is in the Pettit- Page Field.

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The Oak Hill Field has seen the Tutt, W.R. Well No.4 completed by Valence Operating Co. This well bottoms at 12,345-feet and is located 4.75 miles northeast from Easton. This well was gauged on a 17/64- inch choke and potentialed 459,000 cubic feet of natural gas. Production is in the Cotton Valley formation.

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Panola County

The Box Gas Unit Well No.5 has been completed three miles west of Clayton in the Carthage Field. This well was drilled by Classic Operating Company LLC to bottom at 10,146-feet. This well was gauged on a 16/64-inch choke and potentialed 1.679 million cubic feet of gas. Production is in the Cotton Valley formation.

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In a lease three miles southeast from Carthage, in the Carthage Field, the Owens, Nellie Well No.14 has been completed by Chesapeake Operating, Inc. The well bottoms at 9,596-feet and potentialed 1.197 million cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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Rusk County

The Minor, A. Gas Unit Well No.9 and the Minor, A. Gas Unit Well No.10 have been completed by Energen Resources Corp. in the Oak Hill Field. The wells will be located four miles northwest from Tatum. When gauged on a 22/64-inch choke, the No.9 well potentialed 538,000 cubic feet of natural gas. Total depth is 10,730-feet. When gauged on a 18/64-inch choke, the No.10 well potentialed 2.351 million cubic feet of natural gas. Total depth is 10,743-feet. Production is in the Cotton Valley formation.

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In a lease 1.8 miles northwest of Minden, in the Minden Field, the Minden SWD Well No.3D has been completed by Minden Gathering Services, LLC. The well was drilled to bottom at 6,750-feet. No test data was recorded. Production is in the Travis Peak Consoliated formation.

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Cabot Oil & Gas Corp. has completed the White Gas Unit Well No.3, the Palmer Well No.1 and the Anderson, James G. Et Al Well No.1 in the Brachfield, Southeast Field. Location of the White Gas Unit Well No.3 is 5.87 miles northeast from Minden with a depth of 11,300-feet. This well potentialed 541,000 cubic feet of gas when gauged on a 34/64-inch choke. Location of the Palmer Well No.1 is 2.57 miles southeast from Minden with a depth of 10,840-feet. This well was gauged on a 22/64-inch choke and potentialed 235,000 cubic feet of gas. Location of the Anderson, James G. Et Al Well No.1 is 0.53 miles southeast from Minden with a depth of 11,320-feet. This well was guaged on a 16/64-inch choke and potentialed 1.335 million cubic feet of gas. Production is in the Cotton Valley formation.

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The Henderson, East Field has seen the HP Wesson GU Well No.12 completed by Coronado Energy E & P Company, L.L.C. This well is located 3.5 miles west from Henderson with a depth of 10,950- feet. This well was gauged on a 14/64-inch choke and potentialed 1.214 million cubic feet of gas. Production is in the Cotton Valley formation.

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El Paso E & P Company, L.P. has completed the Watkins Scholarship Trust Well No.2 1.6 miles east from Henderson in the Minden Field. This well bottoms at a depth of 10,950-feet and potentialed 1.407 million cubic feet of natural gas when gauged on a 26/64-inch choke. Production is in the Cotton Valley Consolidated formation.

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The Kennedy, Major Well No.16 is located 21.3 miles northeast of Henderson in the Oak Hill Field. Anadarko E & P Company LP has completed the well to a depth of 10,643-feet. This well was gauged on an adjustable choke and potentialed 1.087 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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Smith County

In a lease two miles southwest from Arp in the Overton Field, the Perry Gas Unit 1 Well No.11H has been completed by Southwestern Energy Production Co. This well bottoms at 11,844-feet and potentialed 7.928 million cubic feet of gas when gauged on a 48/64-inch choke. Production is in the Cotton Valley Sand formation.

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Upshur County

The Harkrider Well No.1 is located 5.9 miles southeast from Gilmer in the Glenwood Field. Southwestern Energy Production Co. completed the well to a total depth of 11,738-feet. When gauged on a 26/64-inch choke, the well potentialed 1.292 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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