EAST TEXAS DRILLING REPORT

EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Cherokee County

The Temple-Eastex G.U. No.3 Well No.3H will be drilled by Cordillera Texas, L.P. in a Wildcat Field. This well will bottom at 11,200-feet 15.2 miles west from Rusk in the Baugh, J P Survey, A- 137.

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XTO Energy Inc. will drill the Doyle Creek Gas Unit No.2 Well No.2 in the Doyle Creek (Travis Peak) Field. This well will bottom at 13,500-feet in the Durst, J Suvey, A-15. Location of the well will be seven miles southeast from Alto and this well may also be drilled in the Doyle Creek (Pettit) Field.

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Gregg County

The Flanagan Well No.11 and the Flanagan Well No.12 will be drilled three miles east from Kilgore in the Danville (Travis Peak-Cotton Valley Consolidated) Field by Samson Lone Star, LLC. The wells will bottom at 13,000-feet in the Grisham, J J Survey, A-84. Both wells may also be drilled in a Wildcat Field.

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Harrison County

Winchester Production Company, Ltd. will drill the North Jonesville "A" Well No.17 in the Waskom (Cotton Valley) Field. The well will be located 1.5 miles northwest from Jonesville in the Alford, L P Survey, A-52 and will bottom at 9,800-feet. This well may also be drilled in a Wildcat Field.

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In a lease seven miles northwest from Waskom, in the Waskom (Cotton Valley) Field, the Southwestern Medical Foundation Well No.10 will be drilled by Samson Lone Star, LLC. This well will bottom at 13,000-feet in the Chisum, J Survey, A-3 and may also be drilled in a Wildcat Field.

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The Mercer Well No.2 will be drilled 11 miles southeast from Marshall in the Carthage, North (Cotton Valley) Field. This well will be drilled to a depth of 11,800- feet by GMX Resources Inc. in the Smith, W Survey, A-21. This well may also be drilled in the Bethany (Travis Peak Consolidated) Field, a Wildcat Field or the Bethany (Pettit 6170) Field.

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Henderson County

In a lease five miles southeast fropm Malakoff in a Wildcat Field, the Simmons Well No.2 will be drilled by Ellis Exploration, Inc. This well will bottom at 10,000- feet in the Riley, C Survey, A-688 and may also be drilled in the Turlington Field, the Tri-Cities (Pettit) Field, the Tri-Cities, North (Rodessa) Field, the Tri-Cities (Travis Peak Lower) Field or the Tri- Cities, Northeast (Bacon) Field.

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Houston County

The W.A. Adams Gas Unit Well No.2 will be drilled 11.1 miles southwest from Lovelady in a Wildcat Field. Navidad Resources, LLC will drill the well to a depth of 11,650-feet in the Johnson, H A Survey, A-47. This well may also be drilled in the Fort Trinidad, West (Glen Rose B) Field, the Fort Trinidad (Glen Rose - E-) Field, the Fort Trinidad (Edwards) Field, the Fort Trinidad, East (Georgetown) Field, the Fort Trinidad (Dexter) Field, the Fort Trinidad (Glen Rose - D-) Field or the Fort Trinidatd (Glen Rose, Upper) Field.

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Johnson County

The Parnell Well No.10H, the Mountain Valley Well No.1H and the Howington Well No.3H will be drilled in the Newark, East (Barnett Shale) Field to a depth of 9,000-feet by Chesapeake Operating, Inc. The Parnell Well No.10H will be drilled four miles northwest from Cleburne in the BBB&C RR Co. Survey, A-107. The Mountain Valley Well No.1H will be drilled 10.5 miles north from Cleburne in the Catlett, H G Survey, A-184. The Howington Well No.3H will be drilled 13.5 miles northwest from Cleburne in the H&TC RR Co./Hughes, S Survey, A-1240.

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Chesapeake Operating, Inc. will drill the Cullison Well No.3H, the Panchasarp A Well No.1H in the Newark, East (Barnett Shale) Field to a depth of 9,000-feet. The No.3H well will be located 5.8 miles northeast from Cleburne in the Carter, W Survey, A-149. The No.1H will be located 10.9 miles north from Cleburne in the Catlett, H G Survey, A-178.

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The Harrison, Pauline Well No.1H will be drilled 8.78 miles northeast from Cleburne in the Newark, East (Barnett Shale) Field. This well will be drilled by Devon Energy Production Company, L.P. to a depth of 9,000-feet in the Quick, J C Survey, A-714.

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There will be five additional wells drilled in the Newark, East (Barnett Shale) Field by Chesapeake Operating, Inc. The Trinity Forge Well No.1H and the Trinity Forge A Well No.2H will be located 19.9 miles northeast from Cleburne in the Hanks, T J Survey, A-1109 with a depth of 9,000-feet. The Richeson Well No.1H and the Richeson Well No.2H will be located 13 miles northwest from Cleburne in the HT&B RR Co./Coker, TJ Survey, A-1028 with a depth of 9,000- feet. The Howington Well No.2H will be located 13.5 miles northwest from Cleburne in the H&TC RR Co./Hughes, S Survey, A-1240 with a depth of 9,000-feet.

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Nacogdoches County

In a lease nine miles northwest from Nacogdoches in the Dougalss, West (Travis Peak) Field, the Black Stone Well No.8 will be drilled to a depth of 12,000-feet by Samson Lone Star, LLC. This well will lie in the De Los Santos Coy, M & Bros Survey, A-21 and may also be drilled in the Little Ears (Pettit Lime) Field, a Wildcat Field, the Nacogdoches, East (James Lime) Field or the Miyagi (Pettit) Field.

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Samson Lone Star, LLC will drill the J&A Durham GU 1 Well No.1 and the J&A Durham GU 1 Well No.2 to a depth of 12,000-feet in the Douglass, West (Travis Peak) Field. The wells will be located 9.5 miles northwest from Nacogdoches in the De Los Santos Coy, M & Bros. Survey, A-21. The wells may also be drilled in the Little Ears (Pettit Lime) Field, a Wildcat Field, the Miyagi (Pettit) Field or the Nacogdoches, East (James Lime) Field.

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The Durrett Gas Unit Well No.5 will be drilled four miles northwest from Mayo in a Wildcat Field. The well will bottom at 12,000-feet in the Rabia, S Survey, A-469. Chesapeake Operating, Inc. may also be drilling the well in the Naconiche Creek (Rodessa-Travis Peak Consolidated) Field or the Naconiche Creek (Cotton Valley) Field.

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In a lease 3.2 miles northwest from Mayo in the Naconiche Creek (Cotton Valley) Field, the Scroggins Gas Unit Well No.10 will be drilled to a depth of 12,000-feet by Chesapeake Operating, Inc. This well will lie in the Yancy, A Survey, A-625 and may also be drilled in the Naconiche Creek (Rodessa-Travis Peak Consolidated) Field or a Wildcat Field.

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Panola County

The Beckville (Cotton Valley) Field will see the Cunningham Well No.5 drilled by Craton Energy Holdings III, LP. This well will be located 3.6 miles west from Beckville in the Nelson, C H Survey, A-512. Total depth will be 11,000-feet.

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Texas American Resources Co. will drill the Glovier Hamilton Well No.4 in the Beckville (Cotton Valley) Field to a depth of 10,500-feet. This well will be located three miles northwest from Beckville in the Gooden, Wesley Survey, A-221.

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In a lease 2.9 miles southeast from Carthage, in the Carthage (Cotton Valley) Field, the Wilson Unit Well No.20 will be drilled by Devon Energy Production Company, L.P. This well will bottom at 13,000-feet in the Everly, A Survey, A-191.

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Devon Energy Production Company, L.P. will prepare to drill the Hudson, Nell Well No.19 in the Carthage (Cotton Valley) Field. This well will be located five miles southwest from Carthage in the Carthage (Cotton Valley) Field. This well will bottom at 14,000- feet in the Hanks, I Survey, A-271.

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In a lease 4.9 miles northeast from Carthage in the Carthage (Cotton Valley) Field, the Allison, Thomas Gas Unit Well No.14A will be drilled by Hunt Petroleum Corp. This well will bottom at 11,400- feet in the Hall, I Survey, A-311 and may also be drilled in the Carthage, North (Bossier Shale) Field or a Wildcat Field.

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There will be three new wells drilled by Anadarko E&P Company LP in the Carthage (Cotton Valley) Field to a depth of 12,000-feet. The Moore, Lloyd Gas Unit Well No.9 will be drilled 5.4 miles southeast from Carthage in the Anderson, W Survey, A-4. The CGU 18 Well No.16 will be drilled 4.3 miles northwest from Carthage in the Martin, R W Survey, A-467. The CGU 18 Well No.19 will be drilled four miles southwest from Carthage in the Smith, M Survey, A-607.

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Robertson County

In a lease 12 miles northeast from Franklin in the Bald Prairie (Travis Peak) Field, the John Blair Well No.1SW will be drilled by Coronado Energy E&P Company, LLC. This well will be drilled to a depth of 8,000-feet in the Owens, W Survey, A-297.

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The Franklin SWD Well No.1 will be drilled 5.1 miles southwest from Franklin in the Bald Prairie (Travis Peak) Field. This well will be drilled to a depth of 6,900-feet by XTO Energy Inc. in the Mc Millan, E Survey, A-222.

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EnCana Oil & Gas (USA) Inc. will drill the McLean F Well No.2 and the Russell Unit Well No.3 in the John Amoruso (Bossier) Field. The No.2 will be drilled to a depth of 19,000-feet 10.9 miles northeast from Franklin in the Pereira, P/Grande, J & M Survey, A-32. The No.3 will be drilled to a depth of 17,500-feet 8.9 miles northeast from Franklin in the Pereira, P/Grande, J & M Survey, A-32.

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Rusk County

The Oak Hill GU 1Well No.4 will be drilled 20.5 miles east from Henderson in the Oak Hill (Cotton Valley) Field by Chinn Exploration Co. This well will bottom at 11,250-feet in the O'Bar, T Survey, A-26.

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Stroud Petroleum, Inc. will drill the Fletcher Well No.2 in a Wildcat Field. This well will bottom at 9,000-feet in the Sparks, L N Survey, A-701. Location will be 8.6 miles southwest from Henderson. This well may also be drilled in the County Lake (Rodessa) Field, the County Lake (Travis Peak) Field or the Henderson, South (Pettit 7445) Field.

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In a lease 21.1 miles northeast from Henderson, in the Oak Hill (Cotton Valley) Field, the Kennedy Gas Unit 2 Well No.15 will be drilled by Anadarko E&P Company LP. This well will bottom at 12,000-feet in the O'Bar, T Survey, A-26.

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The Kennedy Gas Unit 3 Well No.8 and the Kennedy, Major Estate Gas Unit Well No.27 will be drilled in the Oak Hill (Cotton Valley) Field by Anadarko E&P Company LP. The wells will bottom at 12,000-feet. The No.8 will be drilled 21.4 miles northeast from Henderson in the Williamson, R Survey, A-46. The No.27 will be drilled 20 miles northeast from Henderson in the Walling, J Survey, A-42.

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Forest Oil Corp. will drill the Harmon Gas Unit No.1 Well No.8 in the Henderson, East (Cotton Valley) Field to a depth of 11,500- feet. This well will be located six miles northwest from Henderson in the Pena, M V Survey, A-27.

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In a lease 3.2 miles northwest from Garrison, in a Wildcat Field, the Smith Family Trust Well No.7 will be drilled by Chesapeake Operating, Inc. The well will bottom at 12,000-feet in the Morrison, J C Survey, A-517. This well may also be drilled in the Naconiche Creek (Rodessa-Travis Peak Consolidated) Field or the Naconiche Creek (Cotton Valley) Field.

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National Onshore LP will drill the Wilkerson Gas Unit No.1 Well No.5 and the Spikes Gas Unit 1 Well No.10 in the Minden (Cotton Valley Consolidated) Field. The No.5 will be located 6.3 miles southeast from Henderson with a depth of 12,000-feet in the Weathers, A Survey, A-864. This well may also be drilled in a Wildcat Field. The No.10 will be located 4.9 miles east from Henderson with a depth of 12,000-feet in the Peck, S R Survey, A-620. This well may also be drilled in a Minden (Travis Peak Consolidated) Field.

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There will be three additional wells drilled by Enduring Resources, LLC in the Brachfield, Southeast (Cotton Valley) Field. The TXU Gas Unit Well No.2 will be drilled 1.7 miles northwest from Minden in the Del Rio, S Survey, A-34 with a depth of 11,300-feet. The Green Gas Unit 1 Well No.2 will be drilled 2.6 miles west from Minden in the Reel, J Survey, A-33 with a depth of 11,250-feet. The Wilder Gas Unit Well No.3 will be drilled 2.3 miles northwest from Minden in the Reel, H Survey, A-32 with a depth of 11,300-feet. These wells may also be drilled in a Wildcat Field or the Minden (Travis Peak Consolidated) Field.

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Angelina County

The Ryan, E. M. Unit Well No.4 and the Ryan, E. M. Unit Well No.5 have been completed by EnCana Oil & Gas (USA) Inc. in the Raintree Field. The No.4 is located 3.82 miles northeast from Wells with a depth of 11,746-feet. This well potentialed 3.136 million cubic feet of natural gas when gauged on a 48/64-inch choke. The No.5 is located 3.78 miles northeast from Wells with a depth of 11,803-feet. This well potentialed 2.366 million cubic feet of natural gas when gauged on a 14/64-inch choke. Production is in the Hosston formation.

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Harrison County

The Heisman Well No.4 is located 7.6 miles southeast of Marshall in the Carthage, North Field. GMX Resources Inc. has completed the well to a depth of 10,139-feet. When gauged on a 32/64-inch choke, the well potentialed 1.025 million cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on a 22/64-inch choke, the Jennifer Stewart Gas Unit Well No.16 potentialed 1.133 million cubic feet of gas. This well is lcoated 3.7 miles southwest from Hallsville in the Oak Hill Field. This well was completed to a depth of 10,762-feet by EnerVest Operating, L.L.C. Production is in the Cotton Valley formation.

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In a lease 7.6 miles from Hallsville in the Oak Hill Field, the Rollie C. Sims Gas Unit Well No.8 has been completed by NEG Operating LLC. This well bottoms at 10,387-feet and potentialed 1.212 million cubic feet of natural gas when gauged on a 48/64-inch choke. Production is in the Cotton Valley formation.

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Chalker Energy Management II LLC has completed the Karnack - A- Well No.3 to a depth of 9,850- feet. Location is 2.6 miles southwest from Uncertain in the Carthage, North Field. When gauged on a 28/64-inch choke, the well potentialed 526,000 cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on a 26/64-inch choke, the R. C. Childress Well No.1 potentialed 337,000 cubic feet of gas. The well is located 4.1 miles southeast from Longview. NFR Energy LLC completed the well to a depth of 11,033-feet in the Oak Hill Field. Production is in the Cotton Valley formation.

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Henderson County

The Hinton Gas Unit Well No.5 is located 6.10 miles southwest from Athens in the Tri-Cities Field. XTO Energy Inc. has completed the well to a depth of 11,486-feet. When gauged on a 10/64-inch choke, the well potentialed 1.071 million cubic feet of gas.

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Johnson County

The Bransom Well No.1H is located 13 miles northeast of Cleburne in the Newark, East Field. This well was completed by Williams Production Gulf Coast, L.P. to a depth of 10,330-feet. This well was gauged on an open choke and potentialed 5.591 million cubic feet of natural gas. Production is in the Barnett Shale formation.

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EOG Resources, Inc. has seen the Stewart Well No.4H completed in the Newark, East Field to a depth of 7,501-feet. This well is located 1.07 miles southwest from Briaroaks. When gauged on a 64/64- inch choke, the well potentialed 4.893 million cubic feet of natural gas. Production is in the Barnett Shale formation.

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When gauged on a 1-inch choke, the Little Hoss Well No.X6H potentialed 2.863 million cubic feet of natural gas. This well was completed by Chesapeake Operating, Inc. to a depth of 6,676- feet in the Newark, East Field. This well is located 16.1 miles northwest from Cleburne with production in the Barnett Shale formation.

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Hollis R. Sullivan, Inc. has completed the Jimenez Well No.1H and the Smith Well No.1H in the Newark, East Field. The Jimenez Well No.1H is located 4.5 miles southeast of Burleson with a depth of 7,624-feet and potentialed 2.806 million cubic feet of gas when gauged on a 18/64-inch choke. The Smith Well No.1H is located 3.70 miles northwest of Lillian with a depth of 7,525-feet and potentialed 3.213 million cubic feet of gas when gauged on a 17/64-inch choke. Production is in the Barnett Shale formation.

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The Harper NEJ East Well No.C 2AH and the SAU Unit Well No.1H have been completed in the Newark, East Field by XTO Energy Inc. The No.C 2AH well is located 4.3 miles northwest from Venus with a depth of 8,143-feet and potentialed 2.599 million cubic feet of gas when gauged on a 64/64-inch choke. The No.1H well is located 5.1 miles northeast from Cleburne with a depth of 7,659-feet. No test data was recorded. Production is in the Barnett Shale formation.

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There has been three wells completed in the Newark, East Field by Hollis R. Sullivan, Inc. The Jimenez Well No.2H is located 4.5 miles southeast of Burleson with a depth of 7,559-feet. This well potentialed 2.907 million cubic feet of gas when gauged on a 16/64-inch choke. The Tubbs Well No.1H is located 5.5 miles northwest of Alvarado with a depth of 7,835-feet. This well potentialed 2.470 million cubic feet of gas when gauged on a 12/64-inch choke. The Smith B Well No.1H is located 3.7 miles northwest of Lillian with a depth of 7,609-feet. This well potentilaed 2.894 million cubic feet of gas when gauged on a 20/64-inch choke. Production is in the Barnett Shale formation.

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When gauged on a 34/64-inch choke, the Bursey Well No.1H potentialed 1.585 million cubic feet of natural gas. This well is located 10.5 miles southwest from Cleburne in the Newark, East Field. XTO Energy Inc. has completed the well to a depth of 8,560-feet. Production is in the Barnett Shale formation.

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There have been five new wells completed in the Newark, East Field by Devon Energy Production Company, L.P. The LBR Family Partnership Well No.14 is located 8.33 miles southwest from Cleburne with a depth of 9,835-feet and potentialed 1.909 million cubic feet of gas when gauged on a 24/64- inch choke. The LBR Family Partnership Well No.15 is located 8.33 miles southwest from Cleburne with a depth of 9,812-feet and potentialed 1.519 million cubic feet of gas when gauged on a 24/64-inch choke. The West, Bob Well No.4 is located 8.75 miles northwest from Cleburne with a depth of 9,719-feet and potentialed 1.754 million cubic feet of gas when gauged on a 28/64- inch choke. The McPherson, Ronny Well No.3 is located 6.79 miles southwest from Cleburne with a depth of 8,225-feet and potentialed 1.084 million cubic feet of gas when gauged on a 28/64-inch choke. The West, Bob Well No.11 is located 8.98 miles southwest from Cleburne with a depth of 9,835-feet and potentialed 1.394 million cubic feet of gas when gauged on a 24/64-inch choke. Production is in the Barnett Shale formation.

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Nacogdoches County

When gauged on a 0.75-inch choke, the Trawick GU 17 Well No.10 potentialed 2.820 million cubic feet of natural gas. This well is located 2.98 miles east of Cushing in the Trawick Field. This well was drilled to bottom at 8,900-feet by Exxon Mobil Corp. Production is in the Travis Peak formation.

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The Naconiche Creek Field has seen the Fredonia Gas Unit Well No.2 completed by Chesapeake Operating, Inc. this well is located 2.5 miles northeast from Appleby and bottoms at 9,328-feet. When gauged on a 16/64-inch choke, the well potentialed 1.451 million cubic feet of natural gas. Production is in the Rodessa-Travis Peak Consolidated formation.

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Panola County

The Zelma Austin Well No.1 is located 11.5 miles southwest from Carthage in the Carthage Field. AC Exploration, LLC completed the well to a depth of 10,111-feet and was gauged on a 16/64-inch choke, potentialing 1.366 million cubic feet of gas. Production is in the Cotton Valley formation.

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Lacy Operations, Ltd. has completed the Richardson Unit 1 Well No.13 in the Carthage Field. Location is 6.2 miles north of Carthage with a depth of 9,747-feet. When gauged on an adjustable choke, the well potentialed 1.589 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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When gauged on an adjustable choke, the Brannon Well No.9 potentialed 1.331 million cubic feet of gas. This well is located 7.3 miles southwest from Carthage in the Carthage Field. Devon Energy Production Company, L.P. has completed the well to a depth of 9,715- feet with production in the Cotton Valley formation.

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Rusk County

The Brady Well No.3C and the Brady Well No.3T have been completed 10.2 miles southwest from Henderson in the Brachfield, Southeast Field. Both wells bottom at 10,600-feet drilled by Sojitz Energy Venture, Inc. The No.3C potentialed 390,000 cubic feet of gas when gauged on a 17/64-inch choke. Production is in the Travis Peak formation. The No.3T potentialed 1.212 million cubic feet of gas when gauged on a 14/64-inch choke. Production is in the Cotton Valley formation.

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Chesapeake Operating, Inc. has completed the Smith Family Trust Well No.11 in the Naconiche Creek Field. This well is located 3.7 miles northeast from Garrison with a depth of 8,850-feet. This well potentialed 1.642 million cubic feet of gas when gauged on a 20/64-inch choke. Production is in the Rodessa-Travis Peak Consolidated formation.

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When gauged on a 48/64-inch choke, the Pinkerton Gas Unit Well No.8 potentialed 1.989 million cubic feet of gas. This well was completed to a depth of 11,810-feet by Cabot Oil & Gas Corp. Location is 2.55 miles northeast from Minden in the Brachfield, Southeast Field. Production is in the Cotton Valley formation.

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The Jones Well No.1 is located 6.3 miles southeast from Henderson in the Minden Field. This well was drilled by PMO to a depth of 10,955-feet. When gauged on a 12/64-inch choke, the well potentialed 2.794 million cubic feet of gas. Production is in the Cotton Valley Consolidated formation.

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