EAST TEXAS DRILLING REPORT
DEVELOPMENTAL

Anderson County

Carrizo Oil & Gas, Inc. will twelve new wells in the Camp Hill Field to a depth of 600-feet. The wells are designated the Royal Well No.10I, the Royal Well No.11I, the Royal Well No.12I, the Royal Well No.18I, the Royal Well No.19I, the Royal Well No.25I, the Royal Well No.26I, the Royal Well No.121, the Royal Well No.122, the Royal Well No.123, the Royal Well No.124 and the Royal Well No.132. These wells will be located 4.6 miles northeast from Elkhart in the Rogers, M Survey, A-883.

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There will be six additional wells drilled in the Camp Hill Field by Carrixo Oil & Gas, Inc. The Royal Well No.141, the Royal Well No.133, the Royal Well No.134, the Royal Well No.135, the Royal Well No.136 and the Royal Well No.140 will be drilled 4.6 miles northeast from Elkhart in the Rogers, M Survey, A-883. Total depth will be 600-feet.

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Cherokee County

The McMillan Well No.1 will be drilled 12.7 miles northeast from Rusk in a Wildcat Field. The well will bottom at 4,200-feet drilled by LTS Oil & Gas in the Parker, D C Survey, A-670.

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Harrison County

The Bryant Gas Unit Well No.6, the Bryant Gas Unit Well No.7, the Bryant Gas Unit Well No.8, the Bryant Gas Unit Well No.9 and the Bryant Gas Unit Well No.10 in the Carthage, North (Cotton Valley) Field to a depth of 11,000-feet. The wells will be drilled by Penn Virginia Oil & Gas, L.P. in the Cellum, J Survey, A-145 2.6 miles north from Strickling Springs.

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The Woodlawn, Southwest (Cotton Valley) Field will see the Devon Gas Unit Well No.14 drilledc by Penn Virginia Oil & Gas, L.P. This well will be located 6.7 miles west from Marshall in the Gillet, C Survey, A-9 and will bottom at 13,000-feet.

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Forest Oil Corp. will drill the Taylor, T.J. Well No.10 to a depth of 10,500-feet in the Carthage, North (Cotton Valley) Field. The well will be located ten miles southeast from Jefferson in the Ingram, W Survey, A-355.

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The Mattie Dixon Gas Unit Well No.11 and the Mattie Dixon Gas Unit Well No.14 will be drilled by Sandridge Exploration and Production, LLC in the Oak Hill (Cotton Valley) Field. The wells will bottom at 14,00-feet in the Real, A Survey, A-594. The No.11 will be located 4.7 miles south from Hallsville and may also be drilled in a Wildcat Field. The No.14 will be located five miles south from Hallsville.

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The Carthage, North (Cotton Valley) Field will see five new wells drilled by Penn Virginia Oil & Gas, L.P. The McJimsey Gas Unit No.1 SWD Well No.1 will be located 4.1 miles southwest from Elysian Field in the Aldreta, B Survey, A-31 and will bottom at 13,000-feet. The Abney Gas Unit Well No.12 will be located 9.4 miles southeast from Marshall and may also be drilled in the Carthage, North (Bossier Shale) Field. The Abney Gas Unit Well No.13 and the Abney Gas Unit Well No.14 will be located 9.5 miles southeast from Marshall. The Abney Gas Unit Well No.15 will be located 9.7 miles southeast from Marshall. These wells will lie in the Cellum, J Survey, A-145 and will bottom at 12,000-feet.

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BP America Production Co. will drill the James H. Harris Gas Unit "B" Well No.3H in the Woodlawn (Cotton Valley) Field. The well will bottom at 13,000- feet in the Clifton, J M Survey, A- 184. Location will be three miles north from Marshall.

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The LeTourneau Gas Unit 4 Well No.15 will be drilled 17.1 miles southwest from Marshall in the Oak Hill (Cotton Valley) Field by Anadarko E&P Company LP. This well will bottom at 12,000- feet in the Toby, T Survey, A-720.

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There will be three new wells drilled in the Carthage, North (Cotton Valley) Field by Penn Virginia Oil & Gas, L.P. They are designated the Furrh Gas Unit No.3 Well No.21, the Furrh Gas Unit No.3 Well No.23 and the Furrh Gas Unit No.3 Well No.24. The wells will be located 5.9 miles southwest from Elysian Field in the Pearce, E Survey, A-577. The wells will bottom at 13,000-feet.

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Rusk County

Samson Lone Star, LLC will drill the Vinson Gas Unit Well No.16 eight miles west from Tatum in the Oak Hill (Cotton Valley) Field. The well will bottom at 13,000-feet in the Simpson, D Survey, A-37 and may also be drilled in a Wildcat Field.

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The G. Beggs Trust Well No.1 will be located 10.4 miles west from Henderson and the Grissom Heirs Well No.1 will be located 10.6 miles southwest from Henderson, both in a Wildcat Field. The G. Beggs Trust Well No.1 will be drilled to a depth of 12,200-feet in the Roan, W J Survey, A-680. The Grissom Heirs Well No.1 will be drilled to a depth of 12,500-feet in the Gorman, P Survey, A-320. Both wells will be drilled by Davis Oil & Gas, LLC.

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In a lease 5.4 miles southeast from Henderson in the Minden (Cotton Valley Consolidated) Field, the Nana Gas Unit No.1 Well No.10 will be drilled by Sandridge Onshore, LLC. The well will bottom at 12,000-feet in the Peck, S R Survey, A-620. This well may also be drilled in the Minden (Travis Peak Consolidated) Field.

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The Whitehead Well No.1 will be drilled 5.7 miles west from Henderson in the Henderson, East (Cotton Valley) Field. Chinn Exploration Co. will drill the well to a depth of 11,250-feet in the Smith, H M Survey, A-702.

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In a lease seven miles northwest from Henderson, in the Henderson, East (Cotton Valley) Field, the Harmon Gas Unit No.1 Well No.11 will be drilled by Forest Oil Corp. This well will bottom at 11,500-feet in the Pena, M V Survey, A-27.

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Chinn Exploration Co. will drill the Ras Redwine Well No.4 in the Henderson, East (Cotton valley) Field. The well will bottom at 12,500-feet six miles east from Henderson in the Piburn, J Survey, A-28.

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The Kangerga Gas Unit No.1 Well No.15 will be drilled 2.87 miles northeast from Minden in the Brachfield, Southeast (Cotton Valley) Field. The well will be drilled to a depth of 12,000-feet in the Lane, E C Survey, A-490.

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Cherokee County

The Chiles G U B-1Well No.3 is located 2.6 miles southwest from Troup in the Overton Field. Valence Operating Co. has completed the well to a depth of 13,185- feet and the well potentialed 1.168 million cubic feet of gas when gauged on a 24/64-inch choke. Production is in the Cotton Valley Sand formation.

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Gregg County

The Allen Took GU Well No.8 is located two miles west from White Oak in the White Oak Field. This well bottoms at 10,875- feet drilled by Exco Partners Operating Partnership LP. This well potentialed 670,000 cubic feet of gas when gauged on a 20/64-inch choke. Production is in the Cotton Valley Sand formation.

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Harrison County

GMX Resources Inc. has completed the Blocker Heirs Well No.28D in the Carthage, North Field. This well is located eight miles southeast of Marshall with a depth of 10,047-feet. This well potentialed 1.295 million cubic feet of gas when gauged on a 30/64- inch choke. Productin is in the Cotton Valley formation.

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The Gulley 1 GU Well No.15, the Gulley 1 GU Wel No.12 and the Bookout Well No.7 have been completed by Penn Virginia Oil & Gas, L.P. in the Carthage, North Field. No location was recorded for the No.15 well. This well bottoms at 10,108-feet and potentialed 783,000 cubic feet of gas when gauged on a 20/64-inch choke. Location of the No.12 is 2.2 miles northeast from Crossroads with a depth of 9,994-feet. This well potentialed 1.228 million cubic feet of gas when gauged on a 24/64- inch choke. The No.7 is located 3.4 miles northeast from Crossroads with a depth of 10,020-feet. This well potentialed 1.704 million cubic feet of gas when gauged on a 20/64-inch choke. Production is in the Cotton Valley formation.

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BP America Production Co. has completed the Rosborough Gas Unit "B" Well No.6 in the Blocker Field. This well bottoms at 10,565-feet and is located 8.6 miles south from Marshall. When gauged on an adjustable choke, the well potentialed 924,000 cubic feet of natural gas. Production is in the Cotton Valley formation.

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The Downer SWD Well No.3 has been completed by Winchester Production Company, Ltd. in the Waskom Field. The well bottoms at a depth of 6,025-feet. Location is 6.5 miles west from Waskom. No test data was recorded. Production is in the Gloyd formation.

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Nacogdoches County

The Jerry Sutton Well No.1 is located 13.4 miles northeast of Lufkin in the Gates Field. This well was completed to a depth of 11,832-feet by Goodrich Petroleu Co. When gauged on an adjustable choke, the well potentialed 900,000 cubic feet of gas. Production is in the Travis Peak formation.

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When gauged on a 0.75-inch choke, the Trawick GU 17 Well No.9-C potentialed 963,000 cubic feet of gas. This well is located 2.74 miles east of Cushing in the Trawick Field. Exxon Mobil Corp. completed the well to a depth of 8,905-feet. Production is in the Pettit formation.

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Chesapeake Operating, Inc. has completed the Temple Inland GU Well No.7 in the Naconiche Creek Field. This well is located 6.1 miles northwest from Mayo with a depth of 9,137-feet. When gauged on a 18/64-inch choke, the well potentialed 533,000 cubic feet of natural gas. Production is in the Rodessa-Travis Peak Consolidated formation.

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Panola County

Samson Lone Star, LLC has completed the Furrh "B" Well No.5 in the Carthage, North Field. This well bottoms at 9,990-feet four miles south from Deberry. When gauged on a 32/64-inch choke, the well potentialed 388,000 cubic feet of natural gas. Production is in the Cotton Valley formation.

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The Sallie J. Neal Unit Well No.10-H is located 6.6 miles southeast from Carthage in the Carthage Field. Andarko E&P Company LP drilled the well to bottom at 9,077-feet. When gauged on an adjustable choke, the well potentialed 1.617 million cubic feet of gas. Production is in the Cotton Valley formation.

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In a lease 4.50 miles southwest from Elysian Field, in the Carthage, North Field, the McJimsey Gas Unit Well No.8 has been completed by Penn Virginia Oil & Gas, L.P. This well bottoms at 10,185-feet and potentialed 800,000 cubic feet of gas when gauged on a 20/64-inch choke. Production is in the Cotton Valley formation.

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The Pitts A Unit Well No.9 is located 8.8 miles southeast from Carthage and the Panola 2 Unit Well No.15 is located 8.3 miles southeast of Carthage. ConocoPhillips Co. has completed the wells in the Carthage Field. The No.9 bottoms at a depth of 9,510- feet. This well was gauged on a 24/64-inch choke and potentialed 1.473 million cubic feet of gas. The No.15 bottoms at a depth of 9,565-feet. This well was gauged on a 26/64-inch choke and potentialed 832,000 cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on an adjustable choke, the Pope-Medlin Well No.2 potentialed 529,000 cubic feet of natural gas. This well was completed 16.1 miles east from Carthage in the Carthage Field by Petroquest Energy, L.L.C. This well bottoms at a depth of 7,050- feet. Production is in the Travis Peak formation.

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The TXU-Tatum Gas Unit No.1 Well No.1 potentialed 2.776 million cubic feet of gas whe gauged on a 16/64-inch choke. The well was completed to a depth of 10,593-feet by Preston Exploration in the Beckville Field. No location was recorded. Production is in the Cotton Valley formation.

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Goodrich Petroleum Co. has completed the Taylor Bros. Well No.2 and the RM Shaw GU Well No.2 in the Beckville Field. The Taylor Bros. Well No.2 is located 1.9 miles west of Fairplay and bottoms at 10,200-feet. When gauged on an adjustable choke, the well potentialed 1.058 million cubic feet of natural gas. The RM Shaw GU Well No.2 is located 1.7 miles northwest of Fairplay and bottoms at 10,243-feet. When gauged on an adjustable choke, the well potentialed 527,000 cucbic feet of natural gas. Production is in the Cotton Valley formation.

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When gauged on an adjustable choke, the Graves Estate Well No.15-H potentialed 1.788 million cubic feet of gas. This well is located 7.4 miles southwest from Carthage in the Carthage Field. Devon Energy Production Company, L.P. has completed the well to a depth of 9,253-feet. Productin is in the Cotton Valley formation.

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Chevron U.S.A. Inc. has completed the T.C. Adams NCT 1 Well No.68 in the Bethany Field. This well is located 5.1 miles southeast from DeBerry with a depth of 6,000-feet. This well was gauged on a 18/64-inch choke and flowed with 46.17 barrels of crude. Production is in the Travis Peak Consolidated formation.

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Rusk County

In a lease 20.9 miles northeast of Henderson, in the Oak Hill Field, the Burford & Blow G.U. 1 Well No.16 has been completed by Anadarko E&P Company LP. This well bottoms at 10,688-feet and potentialed 516,000 cubic feet of natural gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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Goodrich Petroleum Co. has completed the J. Pricer GU Well No.4 and the J. Pricer GU well No.3 in the Beckville Field. The No.4 is located 12.6 miles north of Henderson with a depth of 10,431-feet. This well potentialed 602,000 cubic feeet of gas when gauged on an adjustable choke. The No.3 is located 10.3 miles east from Henderson with a depth of 10,388-feet. This well potentialed 733,000 cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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When gauged on an adjustable choke, the Major Kennedy Estate Gas Unit Well No.13 potentialed 708,000 cubic feet of natural gas. The well was completed 19.4 miles northeast of Henderson in the Oak Hill Field. Anadarko E&P Company LP completed the well to a depth of 10,650-feet. Production is in the Cotton Valley formation.

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The Newark, East Field has seen three new wells completed by EnCana Oil & Gas (USA) Inc. The Pearl Federal Well No.2H is located 1.6 miles north from Benbrook with a depth of 9,689-feet and potentialed 3.956 millio cubic feet of gas when gauged on a 64/64-inch choke. The Pearl Ranch Unit "A" Well No.401H is located 1.6 miles north from Benbrook with a depth of 10,415-feet and potentialed 3.139 million cubic feet of gas when gauged on a 64/64-inch choke. The Pyramid Acres Unit 6 Wel No.101H is located seven miles southwest from Benbrook with a depth of 9,560- feet and potentialed 2.596 millon cubic feet of gas when gauged on a 22/64-inch choke. Production is in the Barnett Shale formation.

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Upshur County

The R.A. Hinson Gas Unit Well No.11 is located 6.8 miles southeast of Gilmer in the Rosewood Field. Verado Energy, Inc. The well bottoms at 10,520-feet and potentialed 750,000 cubic feet of gas when gauged on a 26/64- inch choke. Production is in the Cotton Valley formation.

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In a lease three miles north from Longview, in the Glenwood Field, the South Brawley Well No.8 has been completed by Exco Partners Operating Partnership LP. This well bottoms at 11,125-feet. When gauged on a 20/64-inch choke, the well potentialed 648,000 cubic feet of gas. Production is in the Cotton Valley formation.