EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Cherokee County

The Weldon Taylor Well No.1 will be drilled 1.8 miles northwest from Jacksonville in a Wildcat Field. This well will be drilled by Ark-La-Tex Energy, L.L.C. to a depth of 6,000-feet in the Quevedo, T Survey, A-44.

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Harrison County

Classic Operating Company LLC will drill the Holcombe Unit Well No.4 in the Carthage, North (Cotton Valley) Field. This well will bottom at 10,100-feet 7.3 miles west from Elysian Field in the Elliott, H Survey, A- 241.

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Panola County

The Freeman Gas Unit Well No.15 will be drilled 10.2 miles northwest from Carthage in the Carthage (Cotton Valley) Field. Anadarko E&P Company LP will drill the well to a depth of 12,000-feet in the Harden, S Survey, A-321.

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Chevron U.S.A. Inc. will drill the Alva Ray Curtis Well No.3 in the Carthage (Travis Peak) Field. This well will be located 16.6 miles southeast from Carthage in the Booker, L R Survey, A-54 and will bottom at 10,500-feet.

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Anadarko E&P Company LP will drill the South Garh Gas Unit 1 Well No.11H in the Carthage (Cotton Valley) Field. This well will be located 1.4 miles southeast from Gary with a depth of 12,500-feet in the Bradley, J M Survey, A-49.

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ConocoPhillips Co. will prepare to drill the Beasley 3 Unit Well No.17 and the Ball 2 Unit Well No.16 in the Carthage (Cotton Valley) Field. The No.17 will be drilled 7.9 miles southeast from Carthage in the Weeden, G Survey, A-704 with a depth of 10,100-feet. The No.16 will be drilled 8.7 miles southwest from Carthage in the Morris, E Survey, A-432 with a depth of 10,150-feet.

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The Carthage (Cotton Valley) Field will see Lacy Operations, Ltd. prepare to drill the Cameron Unit 2 Well No.16 in the Carthage (Cotton Valley) Field. This well will bottom at 9,855-feet 7.2 miles north from Carthage in the LAgrone, W A Survey, A-390.

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Rusk County

The Oak Hill (Cotton Valley) Field will see the Shelton Gas Unit No.1 Well No.5 drilled by SandRidge Exploration and Production, LLC. This well will bottom at 14,000-feet in the Walling, J Survey, A-42.

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Smith County

The Goolsbee Well No.1 will be drilled 15 miles northeast from Tyler by Jamex, Inc. This well will bottom at 10,000-feet in the Starville, North (Travis Peak) Field. The well will lie in the Williams, W Survey, A-1059 and may also be drilled in the Starville, North (Pettit) Field, a Wildcat Field, the Starville, East (Travis Peak) Field or the Starville, Northeast (Pettit) Field.

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Shoco Production, L.P. will drill the Florey Heirs Well No.1 in a Wildcat Field. This well will bottom at 9,000-feet 5.4 miles northwest from Overton in the Plunket, E J Survey, A-785. The well may also be drilled in the Sunshine (Rodessa) Field.

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Cherokee County

The Averitte Gas Unit No.1 Well No.1 has been completed by XTO Energy Inc. in the Doyle Creek Field. This well bottoms at 11,981- feet 7.8 miles east of Alto. This well potentialed 1.220 million cubic feet of gas when gauged on a 18/64- inch choke. Production is in the Travis Peak formation.

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Harrison County

The Martin GU 1 Well No.02, the Martin GU 1 Well No.03 and the Martin GU 1 Well No.06H have been completed in the Oak Hill Field by NFR Energy, LLC. The No.02 is located six miles southeast from Longview with a depth of 12,400-feet and potentialed 776,000 cubic feet of gas when gauged on a 30/64- inch choke. The No.03 is located five miles southeast from Longview with a depth of 12,280-feet and potentialed 686,000 cubic feet of gas when gauged on a 48/64- inch choke. The No.06H is located six miles southeast from Longview with a depth of 13,805-feet and potentialed 1.910 million cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on a 24/64-inch choke, the well potentialed 1.048 million cubic feet of gas when gauged on a 24/64-inch choke. Forest Oil Corp. has completed this well to a depth of 15,025-feet 2.5 miles west from Karnack in the Carthage, North Field. Production is in the Bossier Shale formation.

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The Fogle Trust Well No.01 is located 11 miles southeast from Marshall in the Carthage, North Field. NFR Energy, LLC has completed this well to a depth of 10,106-feet. When gauged on a 30/64-inch choke, the well potentialed 313,000 cubic feet of gas. Production is in the Cotton Valley formation.

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BP America Productioni Co. has completed the Dudeck Heirs Gas Unit Well No.5H and the Davis Gas Unit "F" Well No.2H. The No.5H bottoms at 13,377- feet 5.8 miles southwest from Marshall in the Blocker Field. When gauged on an adjustable choke, the well potentialed 3.334 million cubic feet of gas. The No.2H bottoms at 12,704-feet 0.9 miles northeast from Woodlawn in the Woodlawn Field. When gauged on an adjustable choke, the well potentialed 7.651 million cubic feet of gas. Production is in the Cotton Valley formation.

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Henderson County

The Wofford Heirs Well No.1 is located 3.7 miles northeast of Athens in the Thomas Lake. Decker Operating Company, L.L.C. has completed this well to a depth of 12,700-feet. When gauged on a 48/64-inch choke, the well potentialed 150,000 cubic feet of gas. Production is in the Cotton Valley formation.

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Panola County

The Carthage Field has seen the Callow 2 Unit Well No.15 completed by ConocoPhillips Co. with a depth of 9,530-feet. This well is located 8.9 miles southeast of Carthage. When gauged on a 48/64-inch choke, the well potentialed 1.659 million cubic feet of gas. Production is in the Cotton Valley formation.

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When gauged on an adjustable choke, the Cameron Unit 1 Well No.15 potentialed 1.357 millioncubic feet of gas. This well has been completed by Lacy Operations, Ltd. in the Carthage Field to a depth of 9,777- feet. Location is 7.9 miles northeast of Beckville. Production is in the Cotton Valley formation.

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Devon Energy Production Company, L.P. has completed the Hull Unit A Well No.A 119-H in the Carthage, North Field. This well is located 3.6 miles southeast from Carthage with a depth of 14,333-feet. When gauged on an adjustable choke, the well potentialed 5.000 million cubic feet of gas. Production is in the Bossier Shale formation.

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Rusk County

In a lease 6.1 miles northeast from Minden in the Brachfield, Southeast Field, the Mims Well No.1 has been completed by Cabot Oil & Gas Corp. This well bottoms at 10,875-feet and potentialed 1.066 million cubic feet of gas when gauged on a 14/64-inch choke. Production is in the Cotton Valley formation.

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The Hall Well No.1 is located two miles southwest from Chapman in the Minden Field. Goodrich Petroleum Co. has completed this well to a depth of 10,810- feet. When gauged on a 48/64-inch choke, the well potentialed 150,000 cubic feet of gas. Production is in the Travis Peak Consolidated formation.

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Upshur County

The McCaslin-Hall Well No.4 is located 9.92 miles northeast from Gilmer in the Cedar Springs Field. This well was completed by Maximus Operating, Ltd. to a depth of 12,170-feet. This well was gauged on a 12/64- inch choke and potentialed 2.246 million cubic feet of gas. Production is in the Cotton Valley, Lower formation.

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