EAST TEXAS DRILLING REPORT

EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Angelina County

The E.M. Ryan Unit Well No.8 will be drilled 2.78 miles northeast from Wells in the Raintree (Hosston) Field. This well will be drilled to a depth of 12,300-feet by EnCana Oil & Gas (USA) Inc. This well will lie in the Durst, J Survey, A-201.

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In a lease 6.9 miles northwest from Lufkin, in the Loco Bayou (James Lime) Field, the Kirkland GU Well No.2H will be drilled by Goodrich Petroleum Co. This well will bottom at 11,000-feet in the Barr & Davenoport Survey, A-4.

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Goodrich Petroleum Co. will drill the Sneed, C.W. GU 1 Well No.2 in the Raintree (Hosston) Field. This well will bottom at 13,000-feet in the De La Garza, J Survey, A-15. Location will be 1.8 miles east from Wells.

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Cherokee County

XTO Energy Inc. will drill the Summers Gas Unit No.1 Well No.2 in the Alto (Pettot) Field. This well will be located 2.3 miles southwest from Alto in the Allison, W F Survey, A-58. This well will bottom at 12,800-feet and may also be drilled in the Alto (Travis Peak) Field.

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The Reklaw Gas Unit 3 Well No.16 will be drilled by Lime Rock Resources A, L.P. in the Reklaw (Travis Peak) Field. This well will be located 8.8 miles southeast from Rusk in the Stanford, T Survey, A- 758. The well will bottom at 11,500-feet.

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The Parker Gas Unit Well No.2 will be drilled by Cordillera Texas, L.P. in the Southern Pine (Travis Peak) Field. This well will be lcoatd 13.1 miles west from Rusk in the Gibbs, Z Survey, A-21. Total depth will be 12,000-feet.

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Gregg County

The Griffin Ranch G.U. 2 Well No.13 and the Griffin Ranch G.U. 2 Well No.14 will be drilled by Geo- Vest of Texas, Inc. The wells will bottom at 11,000-feet in the Edwards, H Survey, A-64. The No.13 will be located 4.9 miles northeast from Kilgore in the Danville (Travis Peak-Cotton Valley Consolidated) Field. This well may also be drilled in a Wildcat Field. The No.14 will be located 4.9 miles northeast from Kilgore in the Danville (Pettit-AOil) Field. This well may also be drilled in the Danville (Gloyd) Field or a Wildcat Field.

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Harrison County

The Callison Well No.13D will be drilled 11 miles southeast from Marshall in the Carthage, North (Cotton Valley) Field. The well will be drilled to bottom at 11,800-feet in the Smith, W Survey, A-21 by GMX Resources Inc.

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Winchester Production Company, Ltd. will drill the Jonesville Well No.28 in the Waskom (Cotton VAlley) Field. This well will be located one mile northeast from Jonesville in the Dickerson, S Survey, A-222. This well will bottom at 9,800-feet and may also be drilled in a Wildcat Field.

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There will be four new wells drilled by Chesapeake Operating, Ic. In the Newark, East (Barnett Shale0 Field. The Acorn Family Well No.1H and the Acorn Family Well No.2H will be located 16.8 miles northeast from Cleburne in the Harris, J W Survey, A-1072. The Panchasarp A Well No.2H and the Panchasarp A Well No.3H will be located 10.9 miles north from Cleburne in the Catlett, H G Survey, A-178. Total depth will be 9,000-feet.

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The Rosa R. Roscoe Gas Unit well No.5H will be drilled 9.4 miles southwest from Marshall in the Blocker (Cotton Valley) Field by BP America Production Co. This well will bottom at 13,000-feet in the Mann, W Survey, A-439.

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In a lease 6.5 miles southeast from Hallsville in a Wildcat Field, the Carolyn Bell Gas Unit 1 Well No.10 will be drilled by NEG Operating LLC. This well will bottom at 12,000-feet in the Watson, W Survey, A-748 and may also be drilled in the Oak Hill (Cotton Valley) Field.

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The Carthage, North (Cotton Valley) Field will see the Baldwin Well No.12 drilled by GMX Resources, Inc. This well will be drilled ten miles southeast from Marshall with a depth of 11,800-feet in the Williams, W Survey, A-757. This well may also be drilled in the Bethany (Pettit 6170) Field, a Wildcat Field or the Bethany (Travis Peak Consolidated) Field.

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Devon Energy Production Company, L.P. will prepare to drill the Abney, C M. "B" Well No.19 in the Waskom (Cotton Valley) Field. This well will be located 1.1 miles southwest from Waskom in the Blair, J J Survey, A-100 and will bottom at 13,000-feet.

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The Pilot No.1 Gas Unit Well No.5 will be located 7.8 miles southeast from Jefferson in a Wildcat Field. The well will lie in the Watkins, R O Survey, A-752. This well will be drilled by NFR Energy, LLC to a depth of 10,200-feet. The well may also be drilled in the Woodlawn (Travis Peak) Field or the Woodlawn (Cotton Valley) Field.

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Panola County

The Banks, W.R. Well No.11 will be drilled 1.7 miles southwest from Carthage in the Carthage (Cotton Valley) Field. Chesapeake Operating, Inc. will drill the well to a depth of 14,000-feet in the Moorman, A Survey, A-427. This well may also be drilled in a Wildcat Field.

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In a lease 5.8 miles southwest from Carthage, in the Carthage (Cotton Valley) Field, the Hebert Well No.22 will be drilled by Devon Energy Production Company, L.P. This well will bottom at 12,000-feet in the Hanks, I Survey, A-271.

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Preston Exploration LLC will drill the S. Gary Well No.1 in the Carthage (Cotton Valley) Field. This well will be located 1.9 miles southwest from Gary in the Hanks, S Survey, A-333. This well will bottom at 11,000-feet and may also be drilled in the Carthage (Travis Peak) Field or a Wildcat Field.

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The Beckville (Cotton Valley) Field will see the Sealey, G. T. Well No.3 and the Kyle GU Well No.3 drilled by Goodrich Petroleum Co. The Sealey, T.G. Well No.3 will be located 13.6 miles southeast from Henderson in the Barbee, C Survey, A-71 and will bottom at 11,000- feet. The Kyle GU Well No.3 will be located 14.8 miles southeast from Henderson in the Alred, S Survey, A-27 and will bottom at 11,000- feet.

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The Cavin Unit Well No.16 will be drilled 15.6 miles northeast from Carthage in the Bethany, East (Cotton Valley) Field. Devon Energy Production Company, L.P. will drill this well to bottom at 13,000-feet in the Jordan, B C Survey, A-348.

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In a lease 3.2 miles northwest from Carthage, in the Carthage (Cotton Valley) Field, the CGU 5 Well No.16 will be drilled by Anadarko E & P Company LP. This well will bottom at 12,000-feet in the Moorman, A Survey, A-427.

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Rusk County

The Brachfield, Southeast (Cotton Valley) Field will see the Keeling Well No.1 drilled by Enduring Resources, LLC. This well will be located 2.6 miles southeast from Brachfield in the Reid, P Survey, A- 664. Total depth will be 11,300-feet and this well may also be drilled in the Minden (Travis Peak Consolidated) Field or a Wildcat Field.

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In a lease six miles northwest from Henderson, in the Henderson, East (Cotton Valley) Field, the Harmon Gas Unit No.1 Well No. and the Harmon Gas Unit No.1 Well No.12 will be drilled by Forest Oil Corp. The wells will bottom at 11,500-feet in the Ximenes, J Survey, A-47.

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Sojitz Energy Venture, Inc. will drill the White Well No.2 in the Brachfield, Southeast (Cotton Valley) Field. This well will be located 4.7 miles northeast from Minden in the Brown, J N Survey, A-78 and will bottom at 10,600-feet.

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The Minor, A. Gas Unit Well No.15 will be drilled four miles northwest from Tatum in the Oak Hill (Cotton Valley) Field. Energen Resources Corp. will drill the well to bottom at 11,000-feet in the Lee, Survey, A-17. This well may also be drilled in a Wildcat Field.

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A Wildcat Field will see the Powell Well No.1 drilled 9.7 miles southeast from Henderson by AC Exploration, LLC. This well will bottom at 12,000-feet in the Crow, A R Survey, A-216. This well may also be drilled in the Minden (Travis Peak Consolidated) Field, the Minden (Cotton Valley Consolidated) Field, the Pinehill, Southeast (Pettit, Lower) Field or the Brachfield, Southeast (Cotton Valley) Field.

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National Onshore LP will drill a new well in a Wildcat Field to a depth of 12,000-feet. This well is designated the Powell Gas Unit No.1 Well No.16 and will lie in the Jones, J F Survey, A-461. 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 Robert Youngblood GU Well No.5 and the Robert Youngblood GU Well No.6 will be drilled in the Henderson, East (Cotton Valley) Field by Goodrich Petroleum Co. The No.5 will be located 4.3 miles south from Henderson in the Burk, S P Survey, A-136. The No.6 will be located 4.6 miles southeast from Henderson in the Piburn, J Survey, A-28. The wells will bottom at 11,500-feet and may also be drilled in the Minden (Travis Peak Consolidated) Field.

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Cherokee County

The Chronister Heirs Well No.13 is located 5.1 miles north of Wells in the Doyle Creek Field. This well was drilled to bottom at 12,300-feet by XTO Energy Inc. This well potentialed 822,000 cubic feet of natural gas when gauged on a 10/64-inch choke. Production is in the Travis Peak formation.

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When gauged on a 24/64-inch choke, the Armstrong Deep Well No.1 potentialed 1.020 million cubic feet of gas. This well is located 21.2 miles northwest from Rusk in the Overton Field. Wagner Oil Co. completed the well to a depth of 12,561-feet. Production is in the Cotton Valley Sand formation.

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Gregg County

The Della Melton Well No.2H is located 1.6 miles from Judson in the Willow Springs Field. Forest Oil Corp. completed the well to bottom at 10,808-feet. This well was gauged on an adjustable choke and potentialed 3.637 million cubic feet of gas. Production is in the Cotton Valley formation.

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Harrison County

The Elizabeth Well No.1 is located 17 miles east of Marshall in the Longwood Field. Matador Production Co. completed the well to a depth of 10,090-feet. This well was gauged on a 24/64-inch choke and potentialed 117,000 cubic feet of natural gas. Production is in the Travis Peak formation.

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Brammer Engineering Inc. has completed the Josie Taylor Becker Gas Unit Well No.3 in the Blocker Field. This well is located 7.8 miles southwest from Marshall and bottoms at 10,298-feet. This well was gauged on a 27/64-inch choke and potentialed 2.033 million cubic feet of gas. Production is in the Cotton Valley formation.

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Forest Oil Corp. has completed the Blalock CV Gas Unit Well No.4 and the TJT Minerals Well No.3. The No.4 is located 4.97 miles southwest from Marshall in the Woodlawn, Southwest Field and bottoms at 10,380-feet. This well was gauged on an adjustable choke and potentialed 842,000 cubic feet of gas. The No.3 is located 11 miles southeast from Jefferson in the Carthage, North Field and bottoms at 10,143-feet. This well was gauged on a 26/64-inch choke and potentialed 226,000 cubic feet of gas. Production is in the Cotton Valley formation.

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The Mobley Gas Unit Well No.10 is located 4.9 miles southwest from Marshall in the Blocker Field. The well was completed to a depth of 11,963-feet by Valence Operating Co. This well potentialed 983,000 cubic feet of gas when gauged on a 20/64-inch choke. Production is in the Cotton Valley formation.

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Henderson County

The C.L. Leopard Well No.4 potentialed 1.607 million cubic feet of gas when gauged on a 20/64-inch choke. This well is located 5.90 miles southwest of Athens, drilled to a depth of 11,638-feet. XTO Energy Inc. has completed the well in the Tri-Cities Field. Production is in the Cotton Valley formation.

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Hill County

When gauged ona 30/64-inch choke, the McPherson B Well No.1H potentialed 1.202 million cubic feet of natural gas. This well is located 2.3 miles northwest of Covington in the Newark, East Field. Star Texas Energy Services, Inc. completed the well to a depth of 7,719-feet. Production is in the Barnett Shale formation.

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EOG Resources, Inc. has completed the Mayfield Well No.1H in the Newark, East Field. This well is located 3.7 miles west from Itasca with a depth of 8,587-feet. When gauged on a 64/64-inch choke, the well potentialed 1.501 million cubic feet of natural gas. Production is in the Barnett Shale formation.

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Nacogdoches County

The Douglass, West Field has seen the Douglass GU 3 Well No.9 completed by Samson Lone Star, LLC. This well is located 11 miles northwest from Nacogdoches with a depth of 10,535-feet. This well was gauged on a 27/64-inch choke and potentialed 1.891 million cubic feet of gas. Production is in the Travis Peak formation.

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The Jackson "E-1" Gas Unit Well No.7 is located 3.7 miles southwest from Garrison in the Appleby, North Field. This well was completed to a depth of 10,175-feet by EOG Resources, Inc. No test data was recorded. Production is in the Pettit formation.

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When gauged on a 1.25-inch choke, the Jopling Gas Unit Well No.7 potentialed 814,000 cubic feet of natural gas. This well is located 2.1 miles southeast of Garrison in the Garrison Field. EnerQuest Corp. has completed the well to a depth of 9,150-feet. Production is in the Travis Peak formation.

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Panola County

The Vice Shivers Well No.2 is located six miles south of Tatum in the Beckville Field, no depth recorded. This well potentialed 58,000 cubic feet of gas when gauged on a 48/64-inch choke. This well was completed by Danmark Energy Services, Inc. Production is in the Pettit 6800 formation.

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Jack L. Phillips Co. has completed two new wells in the Carthage, South Field. The Claude Holder Gas Unit Well No.8 and Claude Holder Gas Unit Well No.7 are located 3.5 miles west from Clayton. The No.8 bottoms at 9,908-feet and potentialed 735,000 cubic feet of gas when gauged on a 16/64-inch choke. The No.7 bottoms at 9,910- feet and potentialed 345,000 cubic feet of gas when gauged on a 16/64- inch choke. Production is in the Cotton Valley formation.

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The Carthage Field has seen the Roquemore Gas Unit No.1 Well No.2-C and the Roquemore Gas Unit No.1 Well No.2-T completed by Craton energy Holdings III, LP. Both wells are located 1.2 miles southeast from Fairplay. The No.2- C potentialed 603,000 cubic feet of natural gas when gauged on a 42/64- inch choke. Production is in the Travis Peak formation. The No.2-T potentialed 1.317 million cubic feet of natural gas when gauged on a 18/964-inch choke. Total depth of both wells is 10,105-feet. Production is in the Cotton Valley formation.

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Anadarko E & P Company LP has completed three new wells in the Carthage Field. The CGU 20 Well No.18 is located 4.4 miles northwest of Carthage with a depth of 9,765- feet. This well potentialed 2.375 million cubic feet of natural gas when gauged on an adjustable choke. The CGU 17 Well No.18 is located 3.7 miles northwest of Carthage with a depth of 9,845-feet. This well potentialed 688,000 cubic feet of gas when gauged on an adjustable choke. The CGU 19 Well No.16 is located 4.6 miles northwest of Carthage with a depth of 9,740- feet. This well potentialed 1.429 million cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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The Curry, S. Gas Unit Well No.4 potentialed 822,000 cubic feet of gas and the Taylor Bros. Well No.1 potentialed 486,000 cubic feet of gas when both wells were gauged on an adjustable choke. The No.4 well is located 5.6 miles southwest from Tatum in the Beckville Field with a depth of 10,180-feet. The No.1 well is located 15 miles southeast of Hendreson with a depth of 10,132-feet. Goodrich Petroleum Co. is the operator. Production is in the Cotton Valley formation.

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When gauged on a 35/64-inch choke, the E.O. Rushing Well No.4 potentialed 2.742 million cubic feet of gas. This well is located 1.4 miles north of Joaquin in the Joaquin Field. Classic Operating completed the well to a depth of 8,220-feet. Production is in the Travis Peak formation.

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The Roquemore Gas Unit No.1 Well No.3 is located 1.4 miles southwest from Fairplay in the Carthage Field. This well was completed by Craton Energy Holdings III, LP to a depth of 10,125-feet. When gauged on a 18/64-inch choke, the well potentialed 1.964 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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BP America Production Co. has completed the Carthage Gas Unit 6A Well No.14 in the Carthage Field to a depth of 10,160-feet. This well is located two miles northeast from Beckville. This well potentialed 1.349 million cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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Rusk County

When gauged on a 20/64-inch choke, the Pruitt Well No.A-3 potentialed 2.391 million cubic feet of gas. This well is located 4.10 miles west from Henderson in the Henderson, East Field. NFR Energy LLC completed the well to a depth of 10,985-feet. Production is in the Cotton Valley formation.

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The Moyers "A" Well No.2 is located 7.3 miles west of Henderso in the Henderson, East Field. Chinn Exploration Co. has completed the well to a depth of 11,275-feet. The well was gauged on a 18/64-inch choke and potentialed 662,000 cubic feet of natural gas. Production is in the Cotton Valley formation.

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In a lease 3.4 miles west of Minden, in the Brachfield, Southeast Field, the Purdie Gas Unit 1 Well No.1 has been completed by Enduring Resources, LLC. The well bottoms at 11,100-feet and potentialed 462,000 cubic feet of natural gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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When gauged on a 26/64-inch choke, the Carleton Gas Unit Well No.2 potentialed 1.122 million cubic feet of gas. This well is located 2.79 miles southwest from Long Branch in the Minden. The well was completed to a depth of 10,555-feet by Cabot Oil & Gas Corp. Production is in the Cotton Valley Consolidated formation.

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Chesapeake Operating, Inc. has completed the Jane Ross Well No.1 in the Minden Field to a depth of 13,557-feet. This well is located 2.3 miles northeast from Mt. Enterprise. No test data was recorded. Production is in the Cotton Valley Consolidated formation.

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The Little Teresa Well No.2 potentialed 769,000 cubic feet of gas when gauged on a 1.50-inch choke. This well is located 1.5 miles north of Garrison in the Naconiche Creek Field. EnerQuest Corp. has completed the well to a depth of 9,269- feet. Production is in the Rodessa- Travis Peak Consolidated) Field.

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The Overton Field has seen the Emily Kangerga Well No.1 completed by Greystone Oil & Gas, LLP. This well is located 6.5 miles southwest from Overton with a depth of 11,500-feet. This well potentialed 215,000 cubic feet of gas when gauged on a 22/64-inch choke. Production is in the Cotton Valley formation.

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Stroud Petroleum, Inc. has completed the Fletcher Well No.1 in the Henderson, South Field. This well bottoms at 8,500-feet and is located 6.5 miles southwest of Henderson. When gauged on a 20/64- inch choke, the well potentialed 111,000 cubic feet of gas. Production is in the Pettit 7445 formation.

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In a lease five miles east of Overton in the Oak Hill Field, the Holt Gas Unit Well No.101 has been completed by Buffco Production, Inc. The well bottoms at 11,200-feet and potentialed 1.423 million cubic feet of gas when gauged on a 18/64-inch choke. Production is in the Cotton Valley formation.

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Smith County

The K&ME#1 Willingham Daniels Well No.1 is located 780 miles south of Tyler in a Wildcat Field. This well was completed by Kraker & Martin Energy, LLC to a depth of 10,717-feet. This well was gauged on a 20/64-inch choke and potentialed 481,000 cubic feet of natural gas.