EAST TEXAS DRILLING REPORT

EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Cherokee County

The B M Smith Gas Unit Well No.3 will be drilled in the Percy Wheeler (Rodessa) Field. This well will be drilled to bottom at 9,800-feet by J-O'B Operating Co. This well will lie in the Blanton, J Surevey, A-93 and may also be drilled in the Percy Wheeler (Travis Peak) Field.

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In a lease 6.4 miles northwest from Wells in the Doyle Creek (Travis Peak) Field, the Copeland Well No.1 will be drilled by XTO Energy Inc. This well will bottom at 13,000-feet in the Garrett, S Survey, A-302 and may also be drilled in the Doyle Creek (Pettit) Field.

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Gregg County

In a lease four miles east from Kilgore in the Danville (Travis Peak-Cotton Valley Consolidated) Field, the Flanagan Well No.8 will be drilled by Samson Lone Star, LLC. This well will bottom at 13,000-feet in the Edwards, H Survey, A-64 and may also be drilled in a Wildcat Field.

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TXOK Texas Energy Resources, L.P. will drill the Harris, T.B. Well No.12 in the White Oak (Cotton Valley Sand) Field. This well will be located within city limits of White Oak in the Castleberry, W H Survey, A-38. Total depth will be 11,300-feet.

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Harrison County

NEG Operaing LLC will drill the Bonner Gas Unit Well No.3 in a Wildcat Field, the Mattie Dixon Gas Unit Well No.12 in the Oak Hill (Cotton Valley) Field, the Ava Porter Gas Unit Well No.2 in the Oak Hill (Cotton Valley) Field and the Carolyn Bell Gas Unit No.1 Well No.11 in the Oak Hill (Cotton Valley) Field. The No.3 will be located 4.2 miles southeast from Hallsville in the Blankenship, L B Survey, A-71. This well may also be drilled in the Oak Hill (Cotton Valley) Field. The No.12 will be located five miles south from Hallsville in the Real, A Survey, A-594. This well may also be drilled in a Wildcat Field. The No.2 will be located 2.49 miles southeast from Hallsville in the Stanfield,WW O Survey, A-634. This well may also be drilled in a Wildcat Field. The No.11 will be located 6.5 miles southeast from Hallsville in the Watson, W Survey, A-748. This well may also be drilled in a Wildcat Field. These wells will bottom at 12,000-feet.

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In a lease 2.4 miles southwest from Hallsville in the Oak Hill (Cotton Valley) Field, the Cannon Gas Unit Well No.1 will be drilled by Craton Energy Holdings III, LP. This well will bottom at 11,500-feet in the Hooper, R Survey, A-304.

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The Abney, Zach Unit Well No.3 H will be drilled 6.2 miles west from Waskom in the Waskom (Cotton Valley) Field by Devon Energy Production Company, L.P. This well will bottom at 13,000-feet in the Brookfield, W C Survey, A-2.

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Samson Lone Star, LLC will drill the Taylor Estate Well No.4H in the Waskom (Cotton Valley) Field. The well will be located 5.5 miles northwest from Waskom with a depth of 12,000-feet in the Britt, J M Survey, A-846. This well may also be drilled in a Wildcat Field.

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The Jones, Jerry Well No.10 and the Jone, Jerry Well No.11 will be drilled in the Carthage, North (Cotton Valley) Field by Penn Virginia Oil & Gas, L.P. The No.10 well will be located 13.2 miles northeast from Marshall. The No.11 will be located 13 miles northeast from Marshall. Both wells will lie in the Ward, W R D Survey, A-745 and will bottom with total depth will be 13,000-feet.

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Enervest Operating, L.L.C. will drill the Resch Gas Unit Well No.12 in a Wildcat Field. This well will be located 4.5 miles southwest from Hallsville in the Berry, M Survey, A-75. Total depth will be 11,500-feet and the well may also be drilled in the Oak Hill (Cotton Valley) Field.

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In a lease 11 miles southeast from Jefferson, in the Carthage, North (Cotton Valley) Field, the Stephens No.1 Unit Well No.2 will be drilled by Forest Oil Corp. This well will bottom at 11,500- feet in theWard,W R D Survey, A-745.

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The Bogue "A" Well No.4H will be drilled 1.1 miles east from Crossroads in the Waskom (Cotton Valley) Field. This well will bottom at 9,630-feet in the Wallace, L Survey, A-744 drilled by Comstock Oil & Gas, LP.

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Sandridge Exploration and Production, LLC will drill the Magrill in the Oak Hill (Cotton Valley) Field. This well will be located two miles northeast fromHallsville in the Holbert, J Survey, A-305. This well will bottom at 12,000-feet and may also be drilled in a Wildcat Field.

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Panola County

The Harris Well No.6 and the Edens Well No.19 will be drilled to a depth of 11,250-feet by Chinn Exploration Co. in the Carthage (Cotton Valley) Field. The No.6 well will be located 9.4 miles west from Carthage in the Wynn, J M Survey, A-730. The No.19 well will be located 9.3 miles west from Carthage in the Smith, E Survey, A-601.

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Anadarko E&P Company LP will drill the CGU 3 Well No.19 and the Boren Gas Unit 1 Well No.8H to a depth of 12,000-feet in the Carthage (Cotton Valley) Field. The No.19 well will be located 2.2 miles northwest from Carthage in the Moorman, A Survey, A-427. The No.8H well will be located 7.9 miles southeast from Carthage in the Caraway, J W Survey, A-978.

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In a lease 11 miles southwest from Carthage, in a Wildcat Field, the Smith Well No.2 will be drilled by M.E. Operating & Services, Inc. This well will bottom at 10,500-feet in the Coughran, J Survey, A-121. This well may also be drilled in the J.G.S. (Pettit, Lower) Field, the Carthage, South (Travis Peak) Field, the J.G.S. (Rodessa-C-) Field, the Carthage, Southwest (Pettit) Field, the J.G.S. (Travis Peak-A-S) Field, the Carthage, Southwest (Travis Peak) Field or the Carthage, South (Cotton Valley) Field.

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The MHS-Wells Well No.4 has been completed by Winchester Production Company, Ltd. in the Bethany Field. This well is located 1.5 miles west from Bethany and bottoms at 7,064-feet. When gauged on a 14/64-inch choke, the well potentialed 1.118 million cubic feet of natural gas. Production is in the Travis Peak Consolidated formation.

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Chevron U.S.A. Inc. will drill the Werner-Goodson Unit Well No.6 in the Carthage (Travis Peak) Field. This well will be located 19.6 miles east from Carthage in the Stevens, C R Survey, A-633. This well will bottom at 10,500-feet.

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Rusk County

In a lease 1.3 miles northwest from Minden, in the Brachfield, Southeast (Cotton Valley) Field, the Tufco Gas Unit 1 Well No.7 will be drilled by Enduring Resources, LLC. The well will bottom at 11,300-feet in the Reeves, D W Survey, A-690. This well may also be drilled in the Minden (Cotton Valley Consolidated) Field or a Wildcat Field.

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Anadarko E&P Company LP will drill the Maddox Estate Gas Unit Well No.6 in the Oak Hill (Cotton Valley) Field. The well will be located 2.5 miles northwest from Henderson in the Landers, L Survey, A-479. This well will bottom at 12,000-feet.

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The J.O. Poovey Well No.1 will be drilled by EnerVest Operating, L.L.C. in a Wildcat Field. The well will be located 3.4 miles northeast from Minden in the Dewitt Lyons Survey, A-506 and will bottom at 12,000-feet. This well may also be drilled in the Brachfield, Southeast (Cotton Valley) Field or the Minden (Travis Peak Consolidated) Field.

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The Oak Hill (Cotton Valley) Field will see the Cherokee Water Company Unit Well No.10 drilled by NEG Operating LLC. This well will be located 7.3 miles southeast from Lakeport in the Walling, J Survey, A-42. Total depth will be 12,000-feet.

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Smith County

The Winona (Paluxy A) Field will see the Lena Long Well No.1 drilled by Griffin Operating, Inc. The well will bottom at 8,100-feet in the Brown, M T Survey, A-155. This well will be located 3.2 miles northwest from Winona and may also be drilled in the Winona (Paluxy B) Field.

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Tarrant County

The Newark, East (Barnett Shale) Field will see Devon Energy Production Company, L.P. drill the Laprelle, Garnett Well No.14H to a depth of 9,000-feet in the Boyd, C Survey, A-225. This well will be located 0.9 miles southwest from Haslet with a depth of 9,000-feet.

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There will be eight new wells drilled to a depth of 9,000-feet in the Newark, East (Barnett Shale) Field by Chesapeake Operating, Inc. The Griffin Well No.1H will be located within city limits of Fort Worth in the Ramey, R R Survey, A-1341. The Claneco A Well No.1H will be located within city limits of Fort Worth in the Hamby, T K Survey, A-815. The Wilkinson Well No.B 2H and the Wilkinson Well No.B 4H will be located 10.9 miles northwest from Fort Worth in the Schoeverling, F W Survey, A-1398. The Lake Oaks Well No.3H will be located 10.4 miles northwest from Fort Worth in the Wilcox, J Survey, A- 1704. The DFW Well No.A 8HD will be located 22 miles northeast from Fort Worth in the Bruton, W Survey, A-112. The DFW Well No.A 7HZ and the DFW Well No.A 8HZ will be located 22 miles northeast from Fort Worth in the M&W Survey, A-1112.

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XTO Energy Inc. is preparing to drill the Indian Creek Well No.J 5H, the Indian Creek Well No.J 6H and the Indian Creek Well No.J 7H in the Newark, East (Barnett Shale) Field to a dpeht of 11,000-feet. The wells will be located 0.2 miles southeast from Newark in the T&p RR Co. Survey, A-1574.

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The Voelkel Well No.1H will be drilled 5.5 miles south from Kennedale in the Newark, East (Barnett Shale) Field. This well will be drilled byCarrizo Oil & Gas, Inc. to bottom at 9,000-feet. This well will lie in the Turner, P H Survey, A-1581.

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The Newark, East (Barnett Shale) Field will see the Gafford Unit Well No.D 1H, the TRWD H Unit Well No.8H and the Milne Carroll Unit Well No.A 2H drilled by XTO Energy Inc. The wells will bottom at 11,000-feet. The No.D 1H well will be located 4.9 miles southwest from Mansfield in the Gibbs, E Survey, A- 602. The 8H well will be located four miles northwest from Avondale in the Flores, D T Survey, A- 505. The No.A 2H well will be located 4.6 miles northwest from Mansfield in the Drury, J H Survey, A-447.

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Devon Energy Production Company, L.P. will drill the Tadlock, Margaret Well No.9H and the Laprelle Well No.15H in the Newark, East (Barnett Shale) Field. The No.9H will be located one mile south from Avondale in the Bates, J C Survey, A-226 and will bottom at 9,000-feet . The No.15H will be located two miles southwest from Haslet in the MEP&P RR Co. Survey, A-1129 and will bottom at 9,000-feet.

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In a lease 4.6 miles northeast from Fort Worth in the Newark, East (Barnett Shale) Field, the Mercantile D Well No.2H and the Mercantile D Well No.3H will be drilled by Burnett Oil Company, Inc. These wells will bottom at 9,000-feet in the Beard, A Survey, A-137.

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The Newark, East (Barnett Shale) Field will see the Ole Gieser Unit Well No.D 2H drilled to a depth of 11,000-feet by XTO Energy Inc. This well will be located 0.4 miles north from Mansfield in the Castevens, T B Survey, A-376.

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The White Settlement Unit Well No.4H, the Lah Well No.7H and the Trimble Well No.8H will be drilled in the Newark, East (Barentt Shale) Field by Chesapeake Operating, Inc. The wells will bottom at 9,000-feet. The No.4H will be located 0.9 miles southwest from White Settlement in the White, G Survey, A-1751. The No.7H will be located 10.9 miles northwest from Fort Worth in the Wilcox, J Survey, A-1704. The No.8H will be located within city limits of Fort Worth in the Redding, J F Survey, A-1302.

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Cherokee County

When gauged on a 26/64- inch choke, the McKinney Well No.1 potentialed 150,000 cubic feet of gas. This well is located 4.6 miles northwest from New Summerfield. J-W Operating Co. has completed the well to a depth of 12,475-feet with production in the Cotton Valley formation.

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The Pettit Well No.1 is located 12.10 miles southeast from Rusk in the Reklaw Field. This well bottoms at 11,426-feet drilled by Neumin Production Co. When gauged on a 14/64- inch choke, the well potentialed 1.504 million cubic feet of gas. Production is in the Travis Peak formation.

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XTO Energy Inc. has completed the Chronister Heirs Well No.15 in the Doyle Creek Field. The well bottoms at 12,300-feet and is located 5.10 miles northwest of Wells. When gauged on a 18/64-inch choke, the well potentialed 1.295 million cubic feet of gas. Production is in the Travis Peak formation.

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Gregg County

The Buford & Blow G.U. 3 Well No.15 is located 11.2 miles southeast of Longview in the Oak Hill Field. Anadarko E & P Company LP has completed the well to a depth of 10,575-feet. This well was gauged on an adjustable choke and potentialed 1.516 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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Harrison County

The Jennifer Stewart Gas Unit Well No.14 is located 4.5 miles southwest from Hallsville in the Oak Hill Field. EnerVest Operating, L.L.C. has completed the well to a depth of 10,800-feet. When gauged on a 24/64-inch choke, the well potentialed 1.919 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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When gauged on an adjustable choke, the Delcia Young Gas Unit "B" Well No.5 potentialed 586,000 cubic feet of gas. BP America Production Co. has completed the well to a depth of 10,425-feet in the Blocker Field. Location is 6.7 miles southwest from Marshall.

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Leon County

The Bobby Ray Harris Well No.3 is located 4.66 miles northeast of Buffalo in the Red Oak Field. XTO Energy Inc. has completed the well to a depth of 6,750-feet. When gauged on a 48/64-inch choke, the well flowed with 15 barrels of crude. Production is in the Dexter formation.

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The Dot Cadenhead C Well No.2 has been completed three miles northeast of Buffalo in the Red Oak Field. XTO Energy Inc. has completed the well to depth of 6,750-feet. This well was gauged on a 48/64-inch choke and flowed with 16 barrels of crude. Production is in the Dexter formation.

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Nacogdoches County

The Naconiche Creek Field has seen the J B Strong GUWell No.4 and the Strong GU Well No.11 completed by Chesapeake Operating, Inc. The No.4 well is located 4.6 miles northeast from Appleby with a depth of 12,950- feet. This well was gauged on a 20/64-inch choke and potentialed 1.087 million cubic feet of gas. The No.11 well is located 3.4 miles northwest from Mayo with a depth of 9,215-feet. This well was gauged on a 18/64-inch choke and potentialed 1.251 million cubic feet of gas. Production is in the Rodessa-Travis Peak Consolidated formation.

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Exxon Mobil Corp. has completed the Trawick GU 21 Well No.6-C in the Trawick Field. This well is located 3.5 miles west of Cushing with a depth of 8,881- feet. When gauged on a 0.75-inch choke, the well potentialed 1.127 million cubic feet of gas. Production is in the Pettit formation.

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In a lease four miles south from Cushing in the Trawick Field, the Avery Renee GU 1 Well No.1 has been completed by Samson Lone Star, LLC. This well bottoms at 10,281-feet and potentialed 2.888 million cubic feet of natural gas when gauged on a 28/64-inch choke. Production is in the Travis Peak formation.

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The Lee "E-1" Gas Unit Well No.5 and the Jones "A-1" Gas Unit Well No.5 have been completed in the Appleby, North Field by EOG Resources, Inc. The Lee "E-1" Gas Unit Well No.5 is located 2.8 miles southwest from Garrison with a depth of 10,100- feet. This well was gauged on an adjustable choke and potentialed 1.041 million cubic feet of natural gas. The Jones "A-1" Gas Unit Well No.5 is located 3.9 miles west from Garrison with a depth of 9,980-feet. This well was gauged on an adjustable choke and potentialed 1.651 million cubic feet of natural gas. Production or the Lee "E-1" Gas Unit Well No.5 is in the Travis Peak formation. Production for the Jones "A- 1" Gas Unit Well No.5 is in the Travis Peak formation and the Pettit formation.

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Panola County

When gauged on a 12/64- inch choke, the C.C. Holiday "A" Unit Well No.3 potentialed 1.177 million cubic feet. Chevron U.S.A., Inc. has completed the well to a depth of 10,000-feet in the Carthage Field. Location is 18.3 miles east from Carthage. Production is in the Travis Peak formation.

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The Long Branch Well No.3- H has been completed by Basa Resources, Inc. in the Carthage, South Field. This well is located six miles from Clayton with a depth of 9,575-feet. When gauged on a 38/64-inch choke, the well potentialed 3.768 million cubic feet of gas. Production is in the Cotton Valley formation.

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St. Mary Land & Exploration Co. has completed the Boise Southern Well No.1 in the Carthge Field. This well is located 10.1 miles southeast from Carthage with a depth of 9,374- feet. When gauged on a 64/64- inch choke, the well potentialed 4.619 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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The Burton, Billie Jean Well No.19 and the Davis, A.L. Well No.24 have been completed in the Carthage Field by Devon Energy Production Company, L.P. The No.19 is located 5.4 miles southwest from Carthage with a depth of 9,635-feet and potentialed 2.609 million cubic feet of natural gas when gauged on an adjustable choke. The No.24 is located 4.5 miles southwest from Carthage with a depth of 9,663-feet and potentialed 2.696 million 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 14/64- inch choke, the MHS-Wells Well No.4 potentialed 1.118 million cubic feet of gas. This well was completed 1.5 miles west from Bethany in the Bethany Field by Winchester Production Company, Ltd. This well bottoms at 7,064- feet. Production is in the Travis Peak Consolidated formation.

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The Carthage Field has seen the CGU 10 Well No.19 completed by Anadarko E&P Company LP. The well is located 2.8 miles northwest from Carthage with a depth of 9,742-feet. This well was gauged on an adjustable choke and potentialed 1.591 million cubic feet of gas. Production is in the Cotton Valley formation.

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Rusk County

The Kangerga WellNo.9 and the Kangerga Well No.8 have been completed in the Minden Field by El Paso E&P Company, L.P. The No.9 is located 2.6 miles southwest from Henderson with a depth of 10,920-feet. This well was gauged on a 20/64-inch choke and potentialed 899,000 cubic feet of natural gas. The No.8 is located 2.8 miles southeast from Henderson with a depth of 10,948-feet. This well was gauged on a 20/64-inch choke and potentialed 1.311 million cubic feet of natural gas. Production is in the Cotton Valley Consolidated formation.

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When gauged on an adjustable choke, the Kennedy, Major Well No.13 potentialed 945,000 cubic feet of gas. This well is located 21 miles northeast of Henderson in the Oak Hill Field. Anadarko E&P Company LP has completed the well to a depth of 10,628-feet. Production is in the Cotton Valley formation.

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Enduring Resources, LLC has completed the Maxwell Gas Unit 1 Well No.1 in the Minden, West Field. this well is located 1.9 miles southwest of Minden with a depth of 11,006-feet. This well potentialed 1.657 million cubic feet of gas when gauged on an adjustable choke. Production is in the Rodessa Hill formation. This well is also completed to commingle in the Brachfield, Southeast (Cotton Valley) Field and the Minden (Travis Peak Consolidated) Field.

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Upshur County

In a lease five miles north from Longview in the Glenwood Field, the Ruby Estate Gas Unit Well No.11 has been completed by Exco Partners Operating Partnership LP. This well bottoms at 11,102-feet and potentialed 253,000 cubic feet of gas when gauged on a 20/64-inch choke. Production is in the Cotton Valley formation.