EAST TEXAS DRILLING REPORT

EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Angelina County

The E.M. Ryan Unit Well No.10 will be drilled 4.01 miles southeast from Wells in the Raintree (Hosston) Field. EnCana Oil & Gas (USA) Inc. will drill the well to a depth of 12,300-feet in the Durst, J Survey, A-201. The well may also be drilled in the Raintree (Pettit ) Field.

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Cherokee County

The New Birmingham "B" Gas Unit Well No.9H will be drilled in the White Oak Creek (Pettit) Field by Marathon Oil Co. This well will be located 5.9 miles west from Alto in the Curl, W Survey, A-184 and will bottom at 14,000-feet. The well may also be drilled in a Wildcat Field.

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Goodrich Petroleum Co. will drill the Sessions, Rube Well No.4 in the Raintree (Hosston) Field. This well will be located 1.1 miles northeast from Wells in the Ruddell, A Survey, A-739 with a depth of 13,000-feet. This well may also be drilled in a Wildcat Field, the Raintree (Cotton Valley) Field or the Doyle Creek (Travis Peak) Field.

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Panola County

The CGU 17 Well No.16H and the Caudle, Dahlia O. Unit 1 Well No.9 will be drilled in the Carthage (Cotton Valley) Field by Anadarko E&P Company LP. The No.16H well will be located 5.1 miles southwest from Carthage in the Mc Creary, C Survey, A-428. The No.9 well will be located 4.8 miles southeast from Carthage in the Anderson, B JR. Survey, A-7. Both wells will bottom at 12,000-feet.

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The Centennial, East (Cotton Valley) Field will see the North Hickey Well No.2 drilled by St. Mary Land & Exploration Co. This well will bottom at 10,000-feet in the English, W Survey, A-194. Location will be 4.7 miles east from DeBerry.

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In a lease 4.7 miles southwest from Carthage, in the Carthage (Cotton Valley) Field, the Mason Well No.22 will be drilled by Devon Energy Company, L.P. This well will bottom at 12,000-feet in the Hanks, I Survey, A-271.

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Phillips, Jack L. Co. will drill the Shady Grove Baptist Church GU Well No.5 in the Carthage, South (Travis Peak) Field. This well will be located three miles west from Clayton in the Lindsey, C Survey, A- 387. The well will bottom at 11,500-feet and may also be drilled in a Wildcat Field or the Carthage (Cotton Valley) Field.

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Lacy Operations, Ltd. will drill the Burnett Unit 9 Well No.14 to a depth of 7,100-feet in the Briggs (Upper Travis Peak) Field. This well will be located 8.3 miles north from Carthage in the Decker, J Survey, A-170.

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Rusk County

The Henderson, East (Cotton Valley) Field will see the Taliaferro Gas Unit 1 Well No.11 drilled by Forest Oil Corp. This well will be located five miles west from Henderson in the Willshire, T L Survey, A-843 with a depth of 11,500-feet.

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In a lease 10.2 miles southwest from Tatum, in a Wildcat Field, the A. Brooks GU Well No.6 will be drilled by Goodrich Petroleum Co. This well will bottom at 12,800-feet in the Grason, W Survey, A- 331. This well may also be drilled in the Bekcville (Cotton Valley) Field.

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The A. Brooks GU Well No.7 will also be drilled by Goodrich Petroleum Co. in a Wildcat Field. This well will be located 10.8 miles southwest from Tatum in the Wyatt, E Survey, A-840 and will bottom at 12,800-feet. This well may also be drilled in the Beckville (Cotton Valley) Field.

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NFR Energy, LLC will drill the Hardy, John Well No.8 in a Wildcat Field. This well will be located three miles southwest from Henderson in the Jones, T Survey, A-450. Total depth will be 13,000- feet.

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The Beckville (Pettit 6800) Field will see the Carter-Hurst Gas Unit #1 Well No.2 drilled by H & T Exploration, Inc. This well will be located 2.6 miles north from Tatum in the F.G. Cherry Survey, A-1002. Total depth will be 7,300-feet. This well may also be drilled in the Cuthand, Southeast (Glen Rose 4700) Field, the Tatum, North (Travis Peak) Field or a Wildcat Field.

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Smith County

The Echard Heirs Unit Well No.7H will be drilled 13.4 miles southeast from Tyler in the Parmer, W L Survey, A-767 by Exco Partners Operating Partnership LP. This well will bottom at 12,000-feet in the Overton (Cotton Valley Sand) Field and may also be drilled in a Wildcat Field.

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Fair Oil, Ltd. will drill the Stevenson Creek Estates Well No.1 in a Wildcat Field. The well will be located 1.5 miles northwest from Lindale in the Sanders, J H Survey, A-859. Total depth will be 8,200-feet.

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In a lease 7.7 miles northeast from Tyler, in the Driskell Lake (Rodessa, Gas) Field, the Chisum Well No.2 will be drilled by Carrizo Oil & Gas, Inc. This well will bottom at 9,700-feet in the Minor, D Survey, A-644 and may also be drilled in a Wildcat Field.

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A Wilddat Field will see the Tyler Stat Park Unit "A" Well No.1A drilled by Carrizo Oil & Gas, Inc. This well will be located 8.7 miles northeast from Tyler in the Flores, F Survey, A-9. Total depth will be 11,000-feet.

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Upshur County

The Houck-Farmer Well No.1 will be drilled 1.8 miles east from Diana in the Ne Diana (Woodbine) Field by Harleton Oil & Gas Inc. This well will bottom at 4,000-feet in the Scott, J Survey, A-440.

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Maximus Operating, Ltd. will drill the Phillips-Wright Well No.1 in a Wildcat Field. The well will be located 4.7 miles northeast from Gladewater in the Whetstone, P Survey, A-556 and will bottom at 4,100-feet. This well may also be drilled in the Glenwood (Woodbine) Field.

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The Glenwood (Cotton Valley) Field will see the Gladewater GU 16 Well No.18 drilled by TKOK Texas Energy Resources, L.P. The well will be located one mile northeast from Gladewater in the Evans, E A J Survey, A-151. Total depth will be 11,300-feet.

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Van Zandt County

In a lease 2.6 miles north from Van in the Van (Shallow) Field, the St. Sixtus Well No.6 will be drilled by Omni Oil & Gas, Inc. This well will bottom at 1,300-feet in the Nacogdoches CSL Survey, A-620.

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Cherokee County

The Chronister Heirs Well No.17 is located 5.50 miles north of Wells in the Doyle Creek Field. This well was completed to a depth of 12,300-feet by XTO Energy Inc. When gauged on a 16/64- inch choke, the well potentialed 2.106 million cubic feet of gas. Production is in the Travis Peak formation.

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Endeavor Natural Gas L.P. has completed the Bruno Well No.1A in the Percy Wheeler Field. This well is located nine miles northeast from Jacksonville with a depth of 12,640-feet. When gauged on a 16/64-inch choke, the well potentialed 59,000 cubic feet of natural gas. Production is in the Travis Peak formation.

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Harrison County

When gauged on a 48/64- inch choke, the Daisy May Well No.1 potentialed 45,000 cubic feet of natural gas. This well was completed to a depth of 9,750-feet by Matatdor Production Co. This well is located 18.10 miles east from Marshall in the Longwood Field. Production is in the Travis Peak formation.

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The Carthage, North Field has seen the Mobley Gas Unit Well No.11 completed by Valence Operating Co. This well is located 6.7 miles southwest from Marshall with a depth of 11,980-feet. This well potentialed 415,000 cubic feet of gas when gauged on a 20/64-inch choke. Production is in the Bossier Shale formation.

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G M X Resources has completed the Baldwin Well No.9 and the Callison Well No.5D in the Carthage, North Field. The No.9 well is located 11 miles southeast of Marshall with a depth of 10,076-feet. When gauged on a 30/64-inch choke, the well potentialed 1.765 million cubic feet of natural gas. The No.5D well is located 11 miles southeast of Marshall with a depth of 10,138-feet. When gauged on a 32/64-inch choke, the well potentialed 1.413 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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The Maude B. Brown Gas Unit Well No.7 has been completed in the Blocker Field by BP America Production Co. The well is located 11.2 miles southwest from Marshall with a depth of 10,310-feet. When gauged on an adjustable choke, the well potentialed 366,000 cubic feet of gas. Production is in the Cotton Valley formation.

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Nacogdoches County

When gauged on a 0.75- inch choke, the Trawick GU 17 Well No.10-C potentialed 370,000 cubic feet. The well is located 2.98 miles east of Cushing in the Trawick Field. Exxon Mobil Corp. has completed the well to a depth of 8,900-feet. Production is in the Pettit formation.

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Exxon Mobil Corp. has completed two additional wells in the Trawick Field. The Trawick GU 5 Well No.11-C is located 3.22 miles southeast of Cushing with a depth of 8,876-feet. When gauged on a 0.75-inch choke, the well potentialed 735,000 cubic feet of natural gas. Production is in the Pettit formation. The Trawick GU 29 Well No.5-C is located 3.72 miles northeast of Cushing with a depth of 9,500-feet. When gauged on a 0.75-inch choke, the well potentialed 715,000 cubic feet of natural gas. Production is in the James formation. The Trawick GU 29 Well No.5-T is located five miles northwest of Trawick with a depth of 9,500- feet. When gauged on a 0.75- inch choke, the well potentialed 1.649 million cubic feet of natural gas. Production is in the Pettit formation.

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Navarro County

The Clay Bain Well No.1 is located 2.6 miles southwest from Crossroads in the Alligator Creek. Rising Star Petroleum, LLC has completed the well to a depth of 11,880-feet. When gauged on a 10/64-inch choke, the well potentialed 1.178 million cubic feet of gas. Production is in the Bossier formation.

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Panola County

The CGU 5 Well No.12 is located 2.6 miles southwest from Carthage in the Carthage Field. This well was completed to a depth of 9,810-feet by Anadarko E & P Compan LP. This well potentialed 1.063 million 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 30/64- inch choke, the Harris Gas Unit Well No.4 potentialed 1.248 million cubic feet of natural gas. This well was completed to a depth of 10,111- feet by Basa Resources, Inc. This well is located 8.5 miles southwest of Beckville with production in the Cotton Valley formation.

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Chevron U.S.A. Inc. has completed the Beall-Norman Well No.5 in the Carthage Field to a depth of 9,780-feet. When gauged on an adjustable choke, the well potentialed 1.152 million cubic feet of natural gas. Location is 2.2 niles east from Beckville. Production is in the Travis Peak 6400 formation.

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In a lease 13 miles southwest from Carthage, in the Brachfield, Southeast Field, the Lindy Britton Well No.2 has been completed by Coronado Energy E&P Company, LLC. This well bottoms at 12,792- feet and potentialed 6.334 million cubic feet of gas when gauged on a 64/64-inch choke. Production is in the Cotton Valley formation.

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Classic Operating Company LLC has completed the Box Gas Unit Well No.7 three miles west of Clayton in the Carthage Field. This well bottoms at a total depth of 10,190-feet and potentialed 2.640 million cubic feet of gas when gauged on a 48/64-inch choke. Production is in the Cotton Valley formation.

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The Beckham Well No.5 is located 2.3 miles south of Clayton in the Carthage Field. This well was completed to a depth of 10,200-feet by Sojitz Energy Venture, Inc. The well was gauged on a 26/64-inch choke and potentialed 1.450 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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When gauged on a 22/64- inch choke, the Davis, Vera Well No.12 potentialed 1.010 million cubic feet of gas. This well is located 3.10 miles southwest from Clayton in the Carthage Field. Sojitz Energy Venture, Inc. has completed the well to a total depth of 10,200-feet. Production isi n the Cotton Valley formation.

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Rusk County

The Brachfield, Southeast Field has seen the TXU Gas Unit Well No.4 completed 1.5 miles southwest of Minden. Enduring Resources, LLC completed the well to a depth of 10,820-feet. When gauged on an adjustable choke, the well potentialed 1.443 million cubic feet of gas. Production is in the Cotton Valley formation.

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The Danville, East Field has seen the Lee Gas Unit Well No.2 completed by Samson Lone Star, LLC. This well bottoms at 10,877-feet three miles southeast from Kilgore. When gauged on a 17/64-inch choke, the well potentialed 1.959 million cubic feet of natural gas. Production is in the Cotton Valley formation.

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When gauged on a 22/64- inch choke, the Minor, A. Gas Unit Well No.16 potentialed 1.960 million cubic feet of natural gas. This well is located 4.8 miles northwest from Tatum in the Oak Hill Field. Energen Resources Corp. has completed the well to a total depth of 10,804-feet. Production is in the Cotton Valley formation.

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Enduring Resources, LLC has completed the TXU Gas Unit Well No.6 in the Brachfield, Southeast Field. This well bottoms at 10,925-feet 1.3 miles northwest of Minden. This well potentialed 445,000 cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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The Harmon Gas Unit No.1 Well No.4 is located 5.7 miles northwest from Henderson in the Henderson, East Field. This well was completed to a depth of 11,237-feet by Forest Oil Corp. When gauged on a 26/64-inch choke, the well potentialed 344,000 cubic feet of natural gas. Production is in the Cotton Valley formation.

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In a lease 21.5 miles northeast of Henderson, in the Oak Hill Field, the Kennedy GU 3 Well No.6 has been completed by Anadarko E&P Company LP. This well bottoms at 10,655-feet and potentialed 1.252 million cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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Goodrich Petroleum Co. has completed the Pricer, J. GU Well No.5 in the Beckville Field. This well is located 10.4 miles west of Tatum with a depth of 10,403-feet. This well was gauged on an adjustable choke and potentialed 1.621 million cubic feet of gas. Production is in the Cotton Valley formation.

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San Augustine County

The Timberstar 350 Well No.1 has been completed by Southwestern Energy Production Co. in the Stockman, South Field. This well is located 15.3 miles northwest from San Augustine. When gauged on a 20/64-inch choke, the well flowed with 80 barrels of crude. Production is in the Pettit formation.

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Shelby County

When gauged on an adjustable choke, the Adams Well No.6H potentialed 2.755 million cubic feet of gas. This well was completed to a depth of 11,979-feet by Devon Energy Production Company, L.P in the Stockman Field. Location is 10.9 miles southwest from Center. Production is in the Cotton Valley formation.

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Tarrant County

The Hampton Unit Well No.A 1H has been completed in the Newark, East Field by XTO Energy Inc. This well is located 12.15 miles southwest from Fort Worth with a depth of 9,192-feet. When gauged on a 22/64-inch choke, the well potentialed 18.786 million cubic feet of natural gas. Production is in the Barnett Shale formation.

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XTO Energy Inc. has completed five additional wells in the Newark, East Field. The TXU TRWD N Unit Well No.10H is located 5.9 miles northwest from Saginaw with a depth of 12,585-feet and potentialed 5.290 million cubic feet of gas when gauged on a 32/64-inch choke. The TXU TRWD S Unit Well No.17H is located 5.9 miles northwest from Saginaw with a depth of 12,845-feet and potentialed 5.308 million cubic feet of gas when gauged on a 30/64-inch choke. The Bunny Leech B Unit Well No.653692 is located 5.2 miles southeast from Burleson with a depth of 9,813-feet. No test data was recorded. The Indian Creek Well No.M 4H is located 0.2 miles southeast from Newark with a depth of 9,417-feet. When gauged on a 64/64-inch choke, the well potentialed 2.380 million cubic feet of gas. The Latham TRWD Unit Well No.1H is located 3.1 miles southwest from Azle with a depth of 9,877-feet. No test data was recorded. Production is in the Barnett Shale formation.

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In a lease 0.74 miles northeast from Crowley in the Newark, East Field, the Crouch B Well No.1-H has been completed by Chesapeake Operating, Inc. This well bottoms at 10,676-feet and potentialed 2.060 million cubic feet of natural gas when gauged on a 64/64-inch choke. Production is in the Barnett Shale formation.

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The Crouch Well No.2-H is located 0.74 miles northwest from Crowley in the Newark, East Field. This well was completed to a depth of 9,317-feet by Chesapeake Operating, Inc. The well was gauged on a 64/64-inch choke and potentialed 2.185 million cubic feet of gas. Production is in the Barnett Shale formation.

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The Indian Creek Well No.E 4H is located 0.2 miles southeast from Newark in the Newark, East Field. This well bottoms at 10,091-feet by XTO Energy Inc. No test data was recorded. Production is in the Barnett Shale formation.

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Chesapeake Operating, Inc has completed the Trimble Unit Well No.3H and the Trimble Unit Well No.4H in the Newark, East Field. The wells are located within city limits of Fort Worth. The No.3H bottoms at 10,919-feet and potentialed 3.428 million cubic feet of natural gas when gauged on a 64/64-inch choke. The No.4H bottoms at 10,794-feet and potentialed 2.600 million cubic feet of gas when gauged on a 64/64-inch choke. Production is in the Barnett Shale formation.

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In a lease 1.7 miles southwest from Rendan in the Newark, East Field, the Freddie Unit Well No.3H has been completed by XTO Enegy Inc. This well bottoms at 10,445- feet and potentialed 5.709 million cubic feet of natural gas when gauged on a 22/64-inch choke. Production is in the Barnett Shale formation.

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