EAST TEXAS DRILLING REPORT
DEVELOPMENTAL

Harrison County

The Gulley Gas Unit No.1 Well No.16, the Gulley Gas Unit No.1 Well No.17, the Gulley Gas Unit No.1 Well No.18, the Gulley Gas Unit No.1 Well No.19 and the Gulley Gas Unit No.1 Well No.20 will be drilled 3.1 miles northeast from Crossroads in the Carthge, North (Cotton Valley) Field. Penn Virginia Oil & Gas, L.P. will drill the wells to a depth of 14,000-feet in the Cellum, J Survey, A-145.

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Sandridge Exploration and Production, LLC will drill the SWEPCO Gas Unit Well No.8 and the Rollie C. Sims Gas Unit Well No.13 in the Oak Hill (Cotton Valley) Field. The No.8 well will bottom at 12,000-feet in the Little, W Survey, A-397. Location will be 3.76 miles southeast from Hallsville. The No.13 well will bottom at 12,000-feet in the Sorrell, J M Survey, A-645. Location will be 7.6 miles southeast from Hallsville.

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In a lease ten miles south from Marshall in the Darco, Southeast (Cotton Valley) Field will see the Meek Haynes Unit Well No.8 drilled by O'Benco, Inc. This well will bottom at 12,000-feet in the Carrol, E Survey, A-135 and may also be drilled Blocker (Page) Field, a Wildcat Field, the Carthage, North (Bossier Shale) Field, the Blocker (Travis Peak) Field or the Blocker (Rodessa) Field.

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The V.G. Rogers Well No.2 will be drilled five miles southwest from Marshall in the Woodlawn, Southwest (Cotton Valley) Field. Forest Oil Corp. will drill the well to a depth of 11,500-feet in the Roger, M L Survey, A-610 and may also be drilled in the Woodlawn, Southwest (Pettit 6650) Field.

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A Wildcat Field will see the Whittaker Well No.5H drilled seven miles southwest from Marshall. NFR Energy, LLC will drill the well to a depth of 11,000-feet in the Blankenship, L B Survey, A- 71. This well may also be drilled in the Blocker (Cotton Valley) Field or the Woodlawn, Southwest (Cotton Valley) Field.

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Riverstone Energy Operating, LLC will drill the Rudd Well No.1A in a Wildcat Field. The well will be located 8.1 miles north from Waskom in the Mc Millan, J Survey, A-486 with a depth of 9,450-feet. This well may also be drilled in the Longwood (Rodessa) Field, the Longwood (Travis Peak) Field, the Longwood (Cotton Valley) Field or the Longwood (Rudd Pettit) Field.

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The LeTourneau GU 3 Well No.18H will be drilled by Anadarko E&P Company LP in the Oak Hill (Cotton Valley) Field. The well will bottom at 12,000-feet 15.8 miles southwest from Carthage. This well will lie in the Dyson, I Survey, A-217.

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The Carthage, North (Cotton Valley) Field will see the McKenzie Gas Lease Well No.1H and the Furrh, Gail Well No.11H drilled by Penn Virginia Oil & Gas, L.P. The No.1H will be located 10.7 miles northeast from Marshall in the Payne, W H Survey, A-550 and will bottom at 14,000-feet. The No.11H will be located 2.3 miles northwest from Elysian Field and will bottom at 13,000- feet. Both wells may also be drilled in a Wildcat Field.

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Forest Oil Corp. will drill the Beatrice Key Gas Unit Well No.4 in the Carthage, North (Cotton Valley) Field. The well will bottom at 11,500-feet in the Craine, J B Survey, A-144. This well will be located 4.17 miles northwest from Karnack and may also be drilled in a Wildcat Field.

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The Turner Well No.1 and the Turner Well No.2 will be drilled in the Panola Field by Evergreen Operating Company, Ltd. The No.1 will be drilled in a lease 20.4 miles southeast from Marshall. The No.2 will be drilled in a lease 20.3 miles southeast from Marshall. These wells will be drilled to a depth of 2,550- feet in the Harrison, J H Survey, A-329.

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Penn Virginia Oil & Gas (USA) Inc. will drill the Furrh Gas Unit No.3 Well No.9 and the Furrh, Gail Well No.12 to a depth of 13,000-feet. The No.9 will be located 5.9 miles southwest from Elysian Field in the Carthage, North (Cotton Valley) Field. This well will lie in the Pearce, E Survey, A-577. The No.12 will be located 2.3 miles northwest from Elysian Field in a Wildcat Field. The well will lie in the O'Neal, F Survey, A-527 and may also be drilled in the Bethany (Travis Peak Consolidated) Field, the Bethany (Pettit 6170) Field or the Carthage, North (Cotton Valley) Field.

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GMX Resources, Inc. will drill the Heisman Well No.6 and the Callison Well No.3A. The No.6 will be drilled eight miles southeast from Marshall in the Carthage, North (Cotton Valley) Field in the Earle, D Survey, A- 235. Total depth will be 11,800- feet. This well may also be drilled in the Bethany (Pettit 6170) Field, the Bethany (Travis Peak Consolidated) Field or a Wildcat Field. The No.3A will be drilled 11 miles southeast from Marshall in the Bethnay (Travis Peak Consolidated) Field in the Smith, Wm. Survey, A-21. Total depth will be 7,000-feet and may also be drilled in the Bethany (Pettit 6170) Field or a Wildcat Field.

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Rusk County

The Ras Redwine Well No.3 will be drilled 6.1 miles east from Henderson in the Henderson, East (Cotton Valley) Field by Chinn Exploration Co. The well will bottom at 11,250-feet in the Piburn, J Survey, A-28.

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In a lease 2.7 miles northwest from Tatum, in the Oak Hill (Cotton Valley) Field, the Williamson Unit Well No.12 will be drilled by Energen Resources Corp. This well will bottom at 11,000-feet in the Logsdon, J Survey, A-484.

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NFR Energy, LLC will drill the Odom Well No.1 and the Green Unit Well No.1 in a Wildcat Field. The Odom Well No.1 will bottom at 13,000-feet nine miles south from Henderson in the Reel, D Survey, A-31. This well may also be drilled in the Henderson, East (Cotton Valley) Field or the Minden (Travis Peak Consolidated) Field. The Green Unit Well No.1 will bottom at 12,000-feet 3.3 miles northeast from Henderson in the YBarbo, J J Survey, A-880. This well may also be drilled in the Minden (Cotton Valley Consolidated) Field.

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The Birdwell Gas Unit Well No.6 will be drilled 2.2 miles northwest from Minden in the Brachfield, Southeast (Cotton Valley) Field by Enduring Resources, LLC. This well will bottom at 11,500-feet in the Del Rio, S Survey, A-34. This well may also be drilled in a Wildcat Field or the Minden (Travis Peak Consolidated) Field.

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The Oak Hill (Cotton Valley) Field will see the E.H. Pepper Gas Unit Well No.15 drilled by Samson Lone Star, LLC. This well will bottomat 13,000-feet in the Simpson, D Survey, A-37 and may also be drilled in a Wildcat Field. Location will be four miles southwest from Easton.

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SandRidge Onshore, LLC will drill the Spikes Gas Unit No.1 Well No.18 in the Minden (Cotton Valley Consolidated) Field. This well will bottom at 14,000-feet in the Peck, S R Survey, A-620. Location will be 4.9 miles southeast from Henderson. This well may also be drilled in the Minden (Travis Peak Consolidated) Field.

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In a lease 5.5 miles southeast from Elderville, in the Oak Hill (Cotton Valley) Field, the Sooner Gas Unit No.1 Well No.12 will be drilled by Verado Energy, Inc. This well will bottom at 12,000- feet in the Menchaca, F S Survey, A-527. This well may also be drilled in a Wildcat Field.

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The KCR Timberland Ltd. Et Al Well No.2 will be drilled by Machin & Associates, Inc. This well will bottom at 4,150-feet in the Pleasant Grove Field. The well will lie in the May, G Survey, A-25 and may also be drilled in a Wildcat Field or the Pleasant Grove (Shallow) Field.

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Shelby County

The Samford Well No.6 will be drilled 6.05 miles southwest from Center in the Stockman (Cotton Valley) Field. This well will be drilled to a depth of 15,000-feet by Devon Energy Production Company, L.P. This well will lie in the Smith, J M Survey, A-673 and may also be drilled in the Stockman, South (Travis Peak) Field or a Wildcat Field.

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In a lease 4.5 miles east from Shelbyville, in the Mei (Pettit) Field, the West Huxley Deep Unit GG Well No.1H will be drilled by Newfield Exploration Co. This well will bottom at 11,000-feet in the Simpson, B H Survey, A-635. This well may also be drilled in the Huxley (6100) Field, the Joaquin (Travis Peak) Field or a Wildcat Field.

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Smith County

The Swann Unit Well No.1 will be drilled by 3-T Exploration, Inc. in the Lane Chapel (Paluxy A Sand) Field. This well will bottom at 7,000-feet in the Renfor, I Survey, A-800. Location will be six miles east from Tyler. The well may also be drilled in a Wildcat Field.

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Gregg County

The Julia Flemister Gas Unit Well No.2 is located three miles northwest of Longview in the White Oak Field. EXCO Partners Operating Parntership LP completed the well to a depth of 10,973-feet. When gauged on a 20/64-inch choke, the well potentialed 315,000 cubic feet of gas. Production is in the Cotton Valley Sand formation.

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Harrison County

The Carthage, North Field has seen three additional wells completed by Penn Virginia Oil & Gas, L.P. The Bookout Well No.9 is located 3.70 miles northeast from Crossroads with a depth of 10,025-feet. This well was gauged on a 24/64-inch choke and potentialed 1.464 million cubic feet of gas. The Gloria B. Frazier Well No.1 is located 4.1 miles northeast from Crossroads with a depth of 9,921-feet. This well was gauged on a 20/64-inch choke and potentialed 3.311 million cubic feet of gas. The Gulley GU Well No.13 is located 2.20 miles northeast from Crossroads with a depth of 10,015-feet. This well potentialed 1.089 million cubic feet of gas when gauged on a 20/64-inch choke. Production is in the Cotton Valley formation.

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When gauged on a 20/64- inch choke, the Meek-Haynes Well No.6 potentialed 1.208 million cubic feet of gas. This well is located 10.2 miles south of Marshall with a depth of 11,955-feet. O'Benco, Inc. has completed the well in the Darco, Southeast Field. Production is in the Cotton Valley formation.

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Penn Virginia Oil & Gas, L.P. has completed the Lawless Rhoades Well No.15 in the Carthage, North Field with a depth of 10,202-feet. This well is located 4.4 miles west from Elysian. When gauged on a 22/64-inch choke, the well potentialed 1.092 million cubic feet of gas. Production is in the Cotton Valley formation.

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The Lockhart Well No.2 has been drilled by SandRidge Exploration and Production, LLC. This well is located three miles northeast from Hallsville in the Hallsville, Northeast Field. Total depth is 10,575-feet. When gauged on a 27/64-inch choke, the well potentialed 1.138 million cubic feet of gas. Production is in the Cotton Valley formation.

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Devon Energy Production Company, L.P. has completed the Jim Davis, Jim Etal Well No.11 in the Waskom Field. This well is located one mile north of Waskom with a depth of 9,750-feet. This well was gauged on an adjustable choke and potentialed 208,000 cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on a 22/64- inch choke, the Bonner Gas Unit Well No.6 potentialed 817,000 cubic feet of gas. This well is located 3.3 miles east from Hallsville in the Oak Hill Field. SandRidge Exploration and Production, LLC has completed the well to a depth of 10,610-feet. Production is in the Cotton Valley formation.

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Panola County

The S.W. Wilcots Gas Unit Well No.6 is located one mile west of Clayton in the Carthage Field. This well was completed by Preston Exploration to a depth of 10,130-feet. When gauged on an adjustable choke, the well potentialed 1.492 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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When gauged on an adjustable choke, the Allison Unit Well No.20 potentialed 867,000 cubic feet of natural gas. The well was completed by Devon Energy Production Company, L.P. in the Carthage Field to a depth of 9,385-feet. This well is located 4.6 miles northeast of Carthage. Production is in the Cotton Valley formation.

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Harleton Oil & Gas Inc. has completed the Glaspie Well No.7- A to a depth of 6,408-feet. This well is located 2.7 miles east of Clayton in the Carthage Field. When gauged on an adjustable choke, the well potentialed 456,000-feet of gas. Production is in the Pettit, Lower formation.

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The Smith Et Al Well No.2 and the Roquemore Gas Unit No.1 Well No.5 have been completed in the Carthage by Craton Energy Holdings III, LP. The No.2 is located 2.4 miles southeast Fair Play. This well was completed to a depth of 10,100-feet. When gauged on a 28/64-inch choke, the well potentialed 1.392 million cubic feet. The No.5 is located 1.3 miles southeast from Fair Play. This well was gauged on a 28/64-inch choke, the well potentialed 1.389 million cubic feet. Production is in the Cotton Valley formation.

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Robertson County

The Bald Prairie Field has seen the Blair, John Well No.16 completed by Coronado Energy. This well is located 12.3 miles northeast from Franklin with a depth of 13,500-feet. When gauged on a 22/64-inch choke, the well potentialed 1.706 million cubic feet of natural gas. Production is in the Cotton Valley Consolidated formation.

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When gauged on a 19/64- inch choke, the TXU South Well No.1 potentialed 2.800 million cubic feet of gas. Eagle Oil & Gas Co. has completed the well 8.7 miles west of Bremond with a depth of 12,068-feet. Production is in the Cotton Valley Consolidated formation.

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Coronado Energy E&P Company, L.L.C. has completed the Blair, John Well No.17 in the Bald Prairie Field with a depth of 13,465-feet. When gauged on a 48/64-inch choke, the well potentialed 949,000 cubic feet of gas. Production is in the Cotton Valley Consolidated formation.

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The Hanhart Gas Unit Well No.1 is located 4.50 miles west of Franklin in the Bald Prairie Field. XTO Energy Inc. has completed the well to a depth of 14,790-feet. When gauged on a 14/64-inch choke, the well potentialed 190,000 cubic feet of natural gas. Production is in the Cotton Valley Consolidated formation.

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Rusk County

The Hinson Gas Unit No.1 Well No.12 has been completed in the Henderson, East Field by Forest Oil Corp. This well is located 4.7 miles west of Henderson with a depth of 11,330-feet. This well was gauged on a 24/64-inch choke and potentialed 911,000 cubic feet of natural gas. Production is in the Cotton Valley formation.

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When gauged on an adjustable choke, the Wilder Well No.4 potentialed 1.105 million cubic feet of gas. This well is located three miles northwest of Minden in the Brachfield, Southeast Field. Total depth is 10,900-feet. Production is in the Cotton Valley formation.

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SandRidge Onshore, LLC has completed the Spikes Gas Unit Well No.9 in the Minden Field. This well bottoms at 10,930-feet 4.8 miles southeast of Henderson. This well was gauged on a 27/64- inch choke and potentialed 3.206 million cubic feet of natural gas. Production is in the Cotton Valley Consolidated formation.

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The Texana GU No.1 Well No.3 has been completed by Samson Lone Star, LLC in the Trawick Field. This well is located 5.5 miles southwest from Mt. Enterprise with a depth 8,780-feet. This well was gauged on 48/64- inch choke and potentialed 468,000 cubic feet of natural gas. Production is in the Travis Peak formation.

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The Powell Gas Unit No.1 Well No.8, the Powell Gas Unit No.1 Well No.14 and the Spikes Gas Unti No.1 Well No.11 have been completed by SandRidge Onshore, LLC in the Minden Field. When gauged on a 22/64- inch choke, the No.8 well potentialed 2.198 million cubic feet of gas. The well was drilled to a depth of 10,840-feet and is located is 4.8 miles southeast from Henderson. When gauged on a 18/64-inch choke, the No.14 well potentialed 2.219 million cubic feet of gas. The well was drilled to a depth of 10,950-feet and is located 5.2 miles southeast of Henderson. When gauged on a 23/64-inch choke, the No.11 potentialed 2.516 million cubic feet, the No.11 well potentialed 2.516 million cubic feet of gas. Production is in the Cotton Valley Consolidated formation.

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When gauged on an adjustable choke, the Tufco Gas Unit 1 Well No.3 potentialed 1.103 million cubic feet of natural gas. This well is located 0.8 miles northwest of Minden in the Brachfield, Southeast Field by Enduring Resources LLC with a depth of 10,875-feet. Production is in the Cotton Valley formation.

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In a lease 2.70 miles east from Henderson in the Minden Field, the Eastland Well No.6, El Paso E & P Company, L.P. has completed the Eastland Well No.6. This well bottoms at 10,920-feet and potentialed 328,000 cubic feet of gas when gauged on a 20/64-inch choke. Production is in the Cotton Valley Consolidated formation.

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Forest Oil Corp. has completed the Hinson Gas Unit 1 Well No.11 and the Dollar Gas Unit No.1 Well No.8 have been completed in the Henderson, East Field. The No.11 is located 4.3 miles west from Henderson. This well was completed to a depth of 11,235-feet and potentialed 546,000 cubic feet of gas when gauged on a 26/64-inch choke. The No.8 is located 3.4 miles southwest from Henderson. This well was completed to a depth of 11,050-feet and potentialed 650,000 cubic feet of gas when gauged on a 26/64-inch choke. Production is in the Cotton Valley formation.

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Shelby County

The Wm. Taylor Well No.6 has been completed by Classic Operating Company LLC in the Joaquin Field. This well is located 1.5 miles south of Joaquin with a depth of 8,939-feet. When gauged on a 48/64-inch choke, the well potentialed 1.700 million cubic feet of natural gas. Production is in the Travis Peak formation.

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When gauged on a 20/64- inch choke, the Dymke G.U. Well No.1H potentialed 4.082 million cubic feet of gas. The well was completed by Hunt Petroleum Corp. in the Huxley Field to a depth of 13,224-feet. Location is 3.5 miles southeast of Neuville. Production is in the 6100 formation.

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Smith County

The Katherine Luscombe Gas Unit Well No.3 is located 1.8 miles northeast from Noonday in the Noonday Field. Valence Operating Co. has completed the well to a depth of 12,700-feet. This well potentialed 2.575 million cubic feet of gas when gauged on a 16/64-inch choke. Production is in the Travis Peak formation.

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