EAST TEXAS DRILLING REPORT

EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Angelina County

The Kurth Well No.2 will be drilled 4.7 miles southeast fropm Wells in the Raintree (Hosston) Field. This well will bottom at 12,300-feet in the Durst, J Survey, A-201 drilled by EnCana Oil & Gas (USA) Inc.

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Cherokee County

The Temple-Eastex G.U. No.2 Well No.4 will be drilled 14.2 miles west from Rusk in a Wildcat Field. This well will be drilled to a depth of 12,000-feet by Cordillera Texas, L.P. in the Burnham, S Survey, A-9. This well may also be drilled in the Southern Pine (Travis Peak) Field or the Southern Pine (Rodessa) Field.

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Harrison County

Anadarko E&P Company LP will drill the LeTourneau Gas Unit 6 Well No.16 in the Oak Hill (Cotton Valley) Field. This well will be located 17.6 miles southwest from Marshall in the Pearson, T K Survey, A-586. This well will bottom at 12,000-feet.

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The Green, F. C. Well No.11H will be drilled 3.8 miles north from Marshall in the Woodlawn (Cotton Valley) Field by Comstock Oil & Gas, LP. This well will be drilled to a depth of 9,700-feet in the Field, J E Survey, A-266.

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In a lease 4.39 miles east from Longveiw, in a Wildcat Field, the Gatlin Well No.1 will be drilled to bottom at 12,000-feet by NFR Energy, LLC. This well will lie in the Mason, R Survey, A-438 and may also be drilled in the Oak Hill (Travis Peak) Field or the Oak Hill (Cotton Valley) Field.

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The Oak Hill (Cotton Valley) Field will see Craton Energy Holdings III, LP drill the Summers Gas Unit Well No.3. This well will be located 4.2 miles southwest from Hallsville in the Blair, Hrs J. Survey, A-74 and will bottom at 11,500-feet.

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Penn Virginia Oil & Gas, L.P. will prepare to drill the Spencer Gas Unit Well No.9 in the Carthage, North (Cotton Valley) Field. This well will be drilled to bottom at 13,000-feet in the Cellum, J Survey, A-145.

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The Narramore Well No.12 will be drilled 1.25 miles northeast from Jonesville in a Wildcat Field. This well will be drilled to a depth of 9,800-feet by Winchester Production Company, Ltd. This well will lie in the Dunn, J C Survey, A-215 and may also be drilled in the Waskom (Cotton Valley) Field.

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Panola County

In a lease 3.8 miles southwest from Carthage, in the Carthage (Cotton Valley) Field, the CGU 9 Well No.16 will be drilled by Anadarko E&P Company LP. This well will bottom at 12,000- feet in the Beck, W Survey, A-76.

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The Carthage (Cotton Valley) Field will see the Frost Unit 5 Well No.7 drilled by Anadarko E&P Company LP. This well will bottom at 12,000-feet in the Mc Faddin, J Survey, A-456 and will be located 9.3 miles northeast from Carthage.

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Texas American Resources Co. will drill the Hamilton, Glovier Well No.9 in the Beckville (Cotton Valley) Field. This well will bottom at 3.1 miles northwest from Beckville in the Hamilton, W Survey, A-272 and will bottom at 10,500-feet.

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The Moore, Lloyd Gas Unit Well No.8H will be drilled 5.5 miles southeast from Carthage in the Carthage (Cotton Valley) Field by Anadarko E&P Company LP. This well will bottom at 12,000-feet in the Anderson, W Survey, A-4.

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Rusk County

The Spikes Gas Unit Well No.16 will be drilled 4.5 miles east from Henderson in the Minden (Cotton Valley Consoliated) Field. This well will bottom at a depth of 12,000-feet drilled by Sandridge Onshore, LLC. This well will lie in the Peck, S R Survey, A-620 and may also be drilled in the Minden (Travis Peak Consolidated) Field.

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In a lease 5.5 miles east from Henderson, in the Minden (Cotton Valley Consolidated) Field, the Nana Gas Unit No.1 Well No.8 will be drilled by Sandridge Onshore, LLC. This well will bottom at 12,000-feet in the White, J M Survey, A-813. This well may also be drilled in the Minden (Travis Peak Consolidated) Field.

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Goodrich Petroleum Co. will drill the Carter, KF WH GU Well No.C 4 in the Beckville (Cotton Valley) Field. This well will be lcocated 3.6 miles southwest from Tatum in the Martin, D Survey, A-526 and will bottom at 12,000- feet.

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The Stingray Gas Unit Well No.6 will be located 6.7 miles southeast from Henderson in a Wildcat Field. El Paso E & P Company, L.P. will drill the well to a depth of 11,200-feet in the Horton, A C Survey, A-363. This well may also be drilled in the Minden (Cotton Valley Consolidated) Field or the Minden (Travis Peak Consolidated) Field.

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The Brachfield, Southeast (Cotton Valley) Field will see the Wilder Gas Unit Well No.1 drilled by Enduring Resources, LLC. This well will bottom at 11,400-feet 2.6 miles northwest from Minden in the Reel, H Survey, A-32. This well may also be drilled in the Minden (Travis Peak Consolidated) Field or a Wildcat Field.

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

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In a lease nine miles east from Henderson, in the Minden (Travis Peak Consolidated) Field, the Wilma Well No.1 will be drilled by Reserve Management, Inc. This well will bottom at 8,000- feet in the Mora, J A Survey, A- 516.

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Smith County

In a lease 12 miles east from Tyler, in the Chapel Hill (Cotton Valley) Field, the Butler, L A Well No.4 will be drilled by Thomas Operating Ltd. Company. The well will bottom at 8,700-feet in the Phillip Lively Survey, A-566 and may also be drilled in the Chapel Hill (Rodessa) Field.

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Panola County

The Shivers Well No.1 has been completed _ mile west of Beckville in the Beckville Field. Kabco Oil & Gas Co. completed the well to a depth of 10,100-feet. This well was gauged on a 20/64- inch choke and flowed with nine barrels of crude. Production is in the Travis Peak formation.

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When gauged on an adjustable choke, the CGU 3 Well No.20 potentialed 1.308 million cubic feet of gas and the CGU 31 Well No.12 potentialed 1.387 million cubic feet of gas. The No.20 well was completed 1.6 miles northwest from Carthage to a total depth of 9,860-feet. The No.12 well was completed 7.7 miles southwest from Carthage to a total depth of 9,995-feet. Both wells were completed by Anadarko E & P Company LP in the Carthage Field. Production is in the Cotton Valley formation.

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Devon Energy Production Company, L.P. has completed the Dunlap Unit Well No.10, the Graves, Doris Well No.3 H and the Thomas, Charles Well No.14 in the Carthage Field. The No.10 well is located 5.7 miles southeast of Carthage with a depth of 9,886-feet. This well potentialed 531,000 cubic feet of gas when gauged on an adjustable choke. The No.3 H well is located 9.2 miles southwest from Carthage with a depth of 9,353-feet. This well potentialed 1.421 million cubic feet of gas when gauged on an adjustable choke. The No.14 welli s located 6.65 miles southwest from Carthage with a depth of 9,670-feet. This well potentialed 3.529 million cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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In a lease 7.4 miles northeast of Beckville, in the Carthage Field, the Cameron Unit 1 Well No.14 has been completed by Lacy Operations, Ltd. This well bottoms at 9,725-feet and potentialed 985,000 cubic feet of natural gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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The Barryer Well No.3 is located 2.8 miles northeast from Beckville in the Carthage Field. This well bottoms at 10,225-feet drilled by Comstock Oil & Gas, LP. This well potentialed 1.067 million cubic feet of gas when gauged on a 24/64-inch choke. Production is in the Cotton Valley formation.

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Buffco Production, Inc. has completed the Griffith Well No.1 in the Carthage, South Field. This well is located 5.2 miles southeast from Clayton with a depth of 9,380-feet. This well potentialed 81,000 cubic feet of natural gas, choke size not recorded.

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The Carthage Field has seen Anadarko E & P Company LP complete the Fred Kyle "A" Unit Well No.18 to a depth of 9,677- feet. This well potentialed 779,000 cubic feet of natural gas when gauged on an adjustable choke. Location is 5.5 miles southeast from Carthage. Production is in the Cotton Valley formation.

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Rusk County

In a lease 2.1 miles northwest from Minden in the Brachfield, Southeast Field, Fidelity Exploration & Production Co. will drill the Goodwin Well No.1. This well bottoms at 10,930-feet and potentialed 1.877 million cubic feet of nautral gas when gauged on a 20/64-inch choke. Production is in the Cotton Valley formation.

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The Kangerga Gas Unit Well No.3 is located 10.9 miles southeast from Henderson in the Brachfield, Southeast Field. This well bottoms at 10,912-feet drilled by Fidelity Exploration & Production Co. This well potentialed 1.496 million cubic feet of gas when gauged on a 22/64-inch choke. Production is in the Cotton Valley formation.

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Goodrich Petroleum Co. has completed the Youngblood, Robert Well No.2 in the Minden Field and the Rayford, Bess Well No.4 in the Henderson, East Field. The No.2 well bottoms at 11,022-feet 5.09 miles south southeast from Henderson. When gauged on an adjustable choke, the well potentialed 308,000 cubic feet of natural gas. Production is in the Travis Peak Consolidated formation. The No.4 well bottoms at 10,830-feet 3.56 miles southeast from Henderson. When gauged on an adjustable choke, the well potentialed 495,000 cubic feet of nautral gas. Production is in the Cotton Valley formation.

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The Oak Hill Field has seen the Minor, A. Gas Unit Well No.12 completed by Energen Resources Corp. to a depth of 10,650-feet. This well is located four miles northwest from Tatum. When gauged on a 30/64-inch choke, the well potentialed 1.676 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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When gauged on a 26/64- inch choke, the Black Stone Minerals Co. GU Well No.2 potentialed 1.693 million cubic feet of natural gas. This well is located 2.8 miles northeast from Minden in the Brachfield, Southeast Field. EnerVest Operating, L.L.C. completed the well to a depth of 10,920-feet. Production is in the Cotton Valley formation.

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Enduring Resources, LLC has completed the Tufco Gas Unit 1 Well No.1 in the Brachfield, Southeast Field. This well is located 1.1 miles northwest of Minden with a depth of 10,850-feet. When gauged on an adjustable choke, the well potentialed 1.159 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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Smith County

The Sanger Investment Well No.1 is located 1.9 miles west of Overton in the Overton Field. This well was completed to a depth of 12,455-feet by Goodrich Petroleum Co. This well potentialed 65,000 cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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Upshur County

The Tommie J. Mason GU Well No.10 is located ten miles south from Gilmer in the Glenwood Field. This well was completed to a depth of 11,085-feet by Exco Partners Operating Partnership LP. The well potentialed 410,000 cubic feet of gas when gauged on a 20/64-inch choke. Production is in the Cotton Valley formation.