EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Panola County

The Ball 2 Unit Well No.18 will be drilled by ConocoPhillips Co. in the Carthage (Cotton Valley) Field. This well will bottom at 10,150-feet nine miles southwest from Carthage in the Morris, E Survey, A-432.

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Complete Vacuum and Rental Inc. will drill the Knotty Head SWD Well No.3 and the Knotty Head SWD Well No.4. The No.3 will be located 16.6 miles northeast from Carthage and will bottom at 6,000-feet in the Carthage (Rodessa) Field. The No.4 will be located 16.6 miles northeast from Carthage and will bottom at 3,000-feet in the Carthage (Paluxy) Field. Both wells will lie in the Matthews, J Survey, A-421.

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XTO Energy Inc. will drill the Pec Minerals Gas Unit No.3 Well No.1H in the Carthage, North (Bossier Shale) Field. This well will bottom at 16,000-feet in the English, W Survey, A-194 4.7 miles southeast from DeBerry.

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The W.B. Twomey Heirs Gas Unit 1 Well No.2H will be drilled 10.5 miles southeast from Carthage in the Carthage, Southeast (Cotton Valley) Field. This well will bottom at 9,450-feet in the Tippett, J Survey, A-666.

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XTO Energy Inc. will drill two new wells. The Cordray Unit Well No.2 will be drilled 2.5 miles northwest from Beckville in the Beckville (Haynesville) Field. The well will bottom at 13,000-feet in the Elias Lowther Survey, A-405 and may also be drilled in the Beckville (Pettit 6800) Field, a Wildcat Field, the Beckville (Travis Peak) Field, the Carthage, North (Bossier Shale) Field or the Beckville, West (Cotton Valley) Field. The Pec Minerals Gas Unit No.3 Well No.2H will be drilled 4.9 miles southeast from DeBerry in the Carthage, North (Bossier Shale) Field. This well will bottom at 15,700-feet in the English, W Survey, A-194.

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The CGU 13 Well No.20 will be drilled 2.4 miles northwest from Carthage in the Carthage (Cotton Valley) Field. This well will be located in the Duncan, S Survey, A-158 drilled to a depth of 12,000-feet by Andarko E & P Company LP.

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Rusk County

SandRidge Exploration and Production, LLC will drill the Gladney Gas Unit Well No.22 in the Oak Hill (Cotton Valley) Field. This well will bottom at 14,000- feet in the Walling, J Survey, A-42 and will be drilled 5.6 miles west from Tatum. The well may also be drilled in the Carthage, North (Bossier Shale) Field.

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The Jarrell Gas Unit Well No.110 will be drilled 3.56 miles northwest from Minden in the Brachfield, Southeast (Cotton Valley) Field. Cabot Oil & Gas Corp. will drill this well to bottom at 13,500-feet in the Birdwell, G Survey, A- 108.

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The Beckville (Haynesville) Field will see the Swiley, T. Hay GU Well No.4H drilled by Goodrich Petroleum Co. This well will be located ten miles southwest from Tatum in the Walling, T J Survey, A-810 with a depth of 15,000-feet.

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Topcat Oilfield Transport, LLC will drill the Camp SWD Well No.10 in the East Texas Field. This well will be located eight miles northwest from Henderson in the Ximenes, J Survey, A-47 with a depth of 5,000-feet.

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The Spikes Gas Unit No.1 Well No.20 will be drilled 5.1 miles southeast from Henderson in the Minden (Travis Peak Consolidated) Field by SandRidge Onshore, LLC. This well will bottom at 14,000-feet in the Peck, S R Survey, A-620 and may also be drilled in the Minden (Cotton Valley Consolidated) Field.

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Smith County

The Shamgar Unit Well No.1 will be drilled 8.2 miles east from Tyler in the Lane Chapel (Paluxy A Sand) Field. This well will be drilled by 3- T Exploration, Inc. in the Renfor, I Survey, A-800 with a depth of 7,000-feet. The well may also be drilled in a Wildcat Field.

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Tarrant County

XTO Energy Inc. will prepare to drill the Mouser Unit Well No.C 1H and the Mouser Unit Well No.C 2H in the Newark, East (Barnett Shale) Field. Both wells will be located 5.3 miles northwest from Mansfield with a depth of 11,000-feet in the Arocha, M J Survey, A-3.

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The Arlington Surber D Unit Well No.8H will be drilled within city limits of Arlington in the Newark, East (Barnett Shale) Field. This well will bottom at 11,000- feet in the Loving, W R Survey, A-944 drilled by XTO Energy Inc.

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Anderson County

Lockout Corp. has completed the McClinton Well No.15 and the McClinton Well No.16 in the Slocum Field. The wells are located one mile southwest from Slocum. The No.15 bottoms at 572-feet and flowed with two barrels of crude. The No.16 bottoms at 567-feet and flowed with two barrels of crude. No choke size was recorded.

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EnCana Oil & Gas (USA) Inc. has completed three new wells in the Raintree Field. The Wiener Well No.2 is located 2.92 miles northeast from Pollock with a depth of 11,925-feet and potentialed 4.175 million cubic feet of gas when gauged on an adjustable choke. The Angelina Lumber Well No.3 is located 5.04 miles southwest from Wells with a depth of 11,880-feet and potentialed 5.521 million cubic feet of gas when gauged on an adjustable choke. The Kurth Well No.4 is located 5.05 miles southeast from Wells with a depth of 11,878-feet and potentialed 3.714 million cubic feet of gas when gauged on an adjustable choke. Production is in the Travis Peak Consolidated formation.

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Freestone County

XTO Energy Inc. has completed three new wells. The Boyd "A" Gas Unit Well No.8 is located 4.1 miles southwest from Fairfield in the Teague Field with a depth of 12,477-feet. This well potentialed 479,000 cubic feet of gas when gauged on a 48/64-inch choke. Production is in the Cotton Valley- Bossier Consolidated formation. The Fulton "A" Well No.13 is located 2.1 miles southeast of Donie in the Bear Grass Field with a depth of 13,290-feet. This well was gauged on a 48/64-inch choke and potentialed 340,000 cubic feet of gas. Production is in the Cotton Valley Consolidated formation. The Gilliam "C" No.2 Gas Unit Well No.22 is located 7.8 miles southwest from Teague in the Freestone Field with a depth of 12,809-feet. This well potentialed 1.385 million cubic feet of gas when gauged on a 48/64-inch choke. Production is in the Cotton Valley-Bossier Consolidated formation.

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Harrison County

The Price Well No.1 potentialed 598,000 cubic feet of gas when gauged on a 22/64-inch choke. Tanos Exploration, LLC has completed this well 19.1 miles west of Marshall in the Lansing, North Field. Total depth is 11,937-feet. Production is in the Cotton Valley, Lower formation.

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The Carthage, North Field has seen the Gail Furrh Well No.8H completed by Penn Virginia Oil & Gas, L.P. This well is located 2.3 miles northwest of Elisian Field with a depth of 14,823-feet. When gauged on a 18/64- inch choke, the well potentialed 6.681 million cubic feet of gas. Production is in the Bossier Shale formation.

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In a lease 5.9 miles southwest of Waskom, in the Waskom Field, the Kirk Buffin Unit Well No.4H has been completed by Devon Energy Production Company, L.P. This well bottoms at 12,603- feet and potentialed 3.963 million cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

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Hopkins County

The A.K. Gillis Unit Well No.3 will be drilled three miles northwest from Sulphur Springs in a Wildcat Field. This well was completed by West Mountain Operating Company, Inc. to a depth of 11,124-feet. When gauged on a 2-inch choke, the well flowed with 15 barrels of crude.

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Houston County

The Overshown Gas Unit Well No.2 is located 3.4 miles north of Augusta in the Decker Switch Field. This well bottoms at 12,323-feet drilled by XTO Energy Inc. This well was gauged on a 20/64- inch choke and potentialed 1.597 million cubic feet of gas. Production is in the Travis Peak formation.

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Johnson County

The Newark, East Field has seen Chesapeake Operating, Inc. completed the Berry Well No.1H 11.2 miles north from Cleburne. This well bottoms at 10,097-feet and potentialed 2.955 million cubic feet of gas when gauged on a 1-inch choke. Production is in the Barnett Shale formation.

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Limestone County

XTO Energy Inc. has completed the Reed "P" Gas Unit No.1 Well No.23 in the Freestone Field. This well is located 3.8 miles west of Donie with a depth of 13,260-feet. When gauged on a 48/64-inch choke, the well potentialed 536,000 cubic feet of gas. Production is in the Cotton Valley-Bossier Consolidated formation.

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Nacogdoches County

The Oak Ridge Field has seen the Golden Eagle Well No.1 completed by Sonerra Resources Corp. This well is located ten miles southeast from Nacogdoches with a depth of 11,150-feet. This well potentialed 892,000 cubic feet of gas when gauged on a 18/64-inch choke. Production is in the Travis Peak formation.

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Panola County

The Brown Well No.4 is located 3.7 miles northwest of Beckville in the Beckville Field. Buffco Production, Inc. has completed this well to a depth of 10,531-feet. The well was gauged on a 16/64-inch choke and potentialed 513,000 cubic feet of gas. Production is in the Cotton Valley formation.

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Robertson County

EnCana Oil & Gas (USA) Inc. has completed two new wells. The Kraemer Enterprises LLC Well No.01 is located 8.9 miles southeast of Franklin with a depth of 16,500-feet in the John Amoruso Field. This well was gauged on a 20/64-inch choke and potentialed 1.428 million cubic feet of gas. Production is in the Bossier formation. The A.D. Carr A Well No.6 is located 3.4 miles northwest of Wealthy with a depth of 18,535-feet in the Hilltop Resort Field. This well was gauged on a 18/64- inch choke and potentialed 12.224 million cubic feet of gas. Production is in the Bossier formation.

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The Bald Prairie Field has seen two additional wells completed by XTO Energy Inc. The Mitchell Unit No.II Well No.14 is located 10.6 miles northeast from Franklin with a depth of 13,425-feet and potentialed 422,000 cubic feet of gas when gauged on a 18/64-inch choke. The Karraker Gas Unit Well No.3 is located 4.7 miles northwest from Franklin with a depth of 13,500-feet and potentialed 334,000 cubic feet of gas when gauged on a 28/64- inch choke. Production is in the Cotton Valley Consolidated formation.

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Rusk County

The Hinson Gas Unit No.1 Well No.9 has been completed four miles west from Henderson by Forest Oil Corp. This well was drilled to a depth of 11,950- feet in the Carthage, North Field. When gauged on a 26/64-inch choke, the well potentialed 830,000 cubic feet of gas. Production is in the Bossier Shale formation.

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When gauged on a 28/64- inch choke, the Youngblood, Robert GU Well No.10 potentialed 1.400 million cubic feet of gas. This well was completed by Goodrich Petroleum Co. 5.1 miles southeast of Henderson in the Henderson, East Field. Total depth is 10,970-feet. Production is in the Cotton Valley formation.

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