EAST TEXAS DRILLING REPORT
DEVELOPMENTAL

Cherokee County

The Northcutt GU 1 Well No.4 will be drilled by Wagner & Brown, Ltd. in the Overton (Cotton Valley Sand) Field. This well will be located one mile south from Troup in the Gee, E Survey, A-20. This well will bottom at 14,800-feet.

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In a lease 14.7 miles southwest from Rusk in a Wildcat Field, the Whiteman-Decker GU No.1 Well No.5 will be drilled by Cordillera Texas, L.P. This well will bottom at 12,000-feet in the Mc Gregor, J Survey, A-34. This well may also be drilled in the Southern Pine (Travis Peak) Field.

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Gregg County

The Gladewater Gas Unit 17 Well No.21 will be drilled within city limits of Gladewater in the Glenwood (Cotton Valley) Field. This well will bottom at 11,300- feet drilled by EXCO Partners Operating Partnership LP. This well will lie in the Crossby, J R Survey, A-50.

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Cameron Exploration, Inc. will drill the Fisher Farms Well No.2 in a Wildcat Field to a depth of 11,000-feet. This well will be located 3.6 miles southwest from Longview in the Lagrone, J Survey, A-124 and may also be drilled in the Willow Springs (Travis Peak) Field or the Willow Springs (Cotton Valley) Field.

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Harrison County

The Mercer Well No.3 will be drilled 12 miles southeast from Marshall in the Carthgae, North (Cotton Valley) Field by GMX Resources Inc. This well will be drilled to bottom at 11,800-feet in the Smith, Wm. Survey, A-21. The 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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In a lease 4.4 miles northeast from Longview in a Wildcat Field, the Mansinger Well No.1 will be drilled by NFR Energy, LLC. This well will be drilled to a depth of 12,000-feet in the Mason, R Survey, A-438 and may also be drilled in the Oak Hill (Cotton Valley) Field.

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There will be three new wells drilled in the Oak Hill (Cotton Valley) Field by XTO Energy Inc. The Bivins-Eastman Gas Unit Well No.4and the Bivins-Eastman Gas Unit Well No.6 will be drilled 5.9 miles southwest from Hallsville. The No. Bivins-Eastman Gas Unit Well No.5 will be drilled 6.4 miles southwest from Hallsville. All three wells will lie in the Thomas K. Pearson Survey, A-586 with a depth of 13,000- feet.

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GMX Resources Inc. is preparing to drill the Mercer Well No.4 in the Carthage, North (Cotton Valley) Field. This well will bottom at 11,800-feet in the Smith, W Survey, A-21 12 miles southeast from Marshall.

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The Gladys Davis Unit Well No.9H will be drilled seven miles north from Marshall in the Smith, R W Survey, A-626 and will bottom at 11,500-feet. This well will be drilled in the Hallsville, Northeast (Cotton Valley) Field by Forest Oil Corp.

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A Wildcat Field will see the North Jonesville "B" Well No.15 drilled to a depth of 9,900-feet by Winchester Production Company, Ltd. This well will be located two miles northwest from Jonesville in the Pridgin, W W Survey, A-563. This well may also be drilled in the Waskom (Cotton Valley) Field.

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There will be three wells drilled by Penn Virginia Oil & Gas, L.P. in a Wildcat Field. The Agnor Well No.3, the Agnor Well No.4 and the Agnor Well No.5 will be drilled to a depth of 13,000-feet in the Thomas, P W Survey, A-714. These wells will be located 4.4 miles southeast from Jefferson and may also be drilled in the Woodlawn (Cotton Valley) Field.

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The Martin Gas Unit No.1 Well No.2 and the Martin Gas Unit No.1 Well No.3 will be drilled in the Oak Hill (Cotton Valley) Field by NFR Energy, LLC. The No.2 well will be drilled six miles southeast from Longview and will bottom at 12,000-feet. The well will lie in the Ferguson, A Survey, A-245 and may also be drilled in a Wildcat Field. The No.3 well will be drilled five miles southeast from Longview and will bottom at 12,000-feet in the Ferguson, A Survey, A-245.

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In a lease 3.5 miles northwest from Elysian Field in the Waskom (Cotton Valley) Field, the Woodley GU 2 Well No.1 will be drilled by Samson Lone Star, LLC. This well willl bottom at 13,000-feet in the Smith, W Survey, A-21. This well may also be drilled in a Wildcat Field.

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Forest Oil Corp. will drill the T.J. Taylor Well No.14 in the Carthage, South (Cotton Valley) Field. The well will bottom at 11,500-feet nine miles southeast from Jefferson in the Ingram, W Survey, A-355.

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The Miller Well No.1 and the Miller Well No.2 will be drilled in the Panola Field by Evergreen Operating Company, Ltd. The wells will bottom at 2,550-feet 20.5 miles southeast from Marshall in the Harrison, J H Survey, A-329.

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Rusk County

In a lease 1.7 miles southwest from Tatum in the Oak Hill (Cotton Valley) Field, the Young, Minnie Bell Well No.2 will be drilled by Preston Exploration LLC. This well will be drilled to a depth of 11,000-feet in the Hazel, S Survey, A-366. This well may also be drilled in a Wildcat Field or the Oak Hill (Travis Peak) Field.

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Goodrich Petroleum Co. will drill the Bess Rayford GU Well No.5 to a depth of 13,000-feetin the Henderson, East (Cotton Valley) Field. This well will be located 3.34 miles southeast from Henderson in the Smith, E A Survey, A-741. This well may also be drilled in a Wildcat Field or the Minden (Travis Peak Consolidated) Field.

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The Birdwell Gas Unit Well No.1 will be drilled 2.8 miles northwest from Minden in the Brachfield, Southeast (Cotton Valley) Field. The well will be drilled by Enduring Resources, LLC in the Reel, H Survey, A-32. 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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The Alford, E.B. Well No.2R will be drilled one mile north from Longview in the East Texas Field. This well will bottom at 4,000-feet drilled by East Texas Oilfield Service in the Moore, T J Survey, A-554.

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Upshur County

The Gregory Well No.4 is located 8.8 miles southeast from Gilmer in a Wildcat Field. This well will be drilled to a depth of 11,000-feet by Stroud Petroleum, Inc. in the Dunn, J M Survey, A- 121. This well may also be drilled in the Stamps (Travis Peak) Field or the Stamps (Cotton Valley) Field.

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Wood County

The Hill Brothers Well No.1 will be drilled 5.24 miles northwest from Hawkins in the Crow (Bacon Lime) Field. Cameron Exploration, Inc. will drill the well to a depth of 9,700-feet in the Rusk, T J Survey, A-511. This well may also be drilled in the Crow (Rodessa, Upper) Field, a Wildcat Field or the Crow (Rodessa) Field.

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Harrison County

The Oney, Henry Well No.9 is located 3.4 miles northwest from Harleton in the Whelan Field. The well was drilled by XTO Energy Inc. to a depth of 11,298-feet. This well was gauged on a 24/64-inch choke and potentialed 617,000 cubic feet of gas. Production is in the Cotton Valley formation.

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Penn Virginia Oil & Gas, L.P. has completed the Brown Well No.2 in the Hardwood Field to a depth of 10,028-feet. This well potentialed 1.082 million cubic feet of gas when gauged on a 18/64-inch choke. Location is 10.9 miles southeast from Marshall. Production is in the Cotton Valley formation.

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The Oak Hill Field has seen the Jennifer Stewart Gas Unit Well No.17 drilled by EnerVest Operating, L.L.C. This well bottoms at 10,800-feet and is located five miles southwest from Hallsville. When gauged on a 32/64-inch choke, the well potentialed 1.191 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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When gauged on a 24/64- inch choke, the Hazel Byrne

Gas Unit No.2 Well No.6 potentialed 1.013 million cubic feet of natural gas. This well was completed 9.7 miles southeast of Marshall in the Darco, Southeast Field. O'Benco, Inc. has completed the well to a depth of 10,300- feet. Production is in the Cotton Valley formation.

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Panola County

The L.H. Pirkle Well No.18 is located 3.1 miles southwest of Carthage in the Carthage Field. This well was completed to a depth of 9,520-feet by XTO Energy Inc. This well was gauged on a 24/64-inch choke and potentialed 1.211 million cubic feet of gas. Production is in the Cotton Valley formation.

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Chevron U.S.A. Inc. has completed the Werner-Pope Well No.2 in the Carthage

Field. This well bottoms at 9,895-feet and is located three miles southeast from Deadwood. When gauged on an adjustable choke, the well potentialed 387,000 cubic feet of gas. Production is in the Travis Peak formation.

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The Orr-Burks GU Well No.5 has been completed by Goodrich Petroleum Co. No location was recorded. Total depth is 10,510-feet in the Brachfield, Southeast Field. This well potentialed 461,000 cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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When gauged on a 14/64- inch choke, the Metcalf Well No.2 potentialed 860,000 cubic feet of natural gas. This well is located 4.3 miles northeast of Beckville. Buffco Production, Inc. has completed the well to a depth of 10,300-feet in the Carthage Field. Production is in the Cotton Valley formation.

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In a lease 5.4 miles southwest from Carthage, in the Carthage Field, the Fender, H. R. Well No.21 has been completed by Devon Energy Production Company, L.P. This well bottoms at 9,600- feet and potentialed 871,000 cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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Rusk County

The Hutchings, J. Unit Well No.15 has been completed by Energen Resources Corp. in the Oak Hill Field. This well is located four miles northwest from Tatum with a depth of 10,756-feet. When gauged on a 17/64-inch choke, the well potentialed 1.911 million cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on an adjustable choke, the Reeves Gas Unit Well No.3 potentialed 914,000 cubic feet of natural gas. This well is located 4.3 miles west northwest from Garrison in the Appleby, North Field. EOG Resources, Inc. has completed the well to a depth of 9,750-feet. Production is in the Travis Peak and Pettit formations.

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Sand Ridge Onshore, LLC has completed the Nana Gas Unit No.1

Well No.11 and the Spike Gas Unit No.1 Well No.15 in the Minden Field. The No.11 is located 5.4 miles east from Henderson with a depth of 10,810-feet. This well was gauged on a 27/64-inch choke and potentialed 3.044 million cubic feet of gas. The No.15 is located 4.7 miles southeast from Henderson with a depth of 10,895-feet. This well was gauged on a 31/64-inch choke and potentialed 2.851 million cubic feet of gas. Production is in the Cotton Valley Consolidated formation.

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The Wilder Gas Unit Well No.5 is located 2.7 miles northwest of Minden in the Brachfield, Southeast Field. Enduring Resources, LLC has completed the well to a depth of 10,810-feet. When gauged on an adjustable choke, the well potentialed 1.817 million cubic feet of gas. Production is in the Cotton Valley formation.