EAST TEXAS DRILLING REPORT

DEVELOPMENTAL Rusk County

The Grissom Heirs - AWell No.3 will be drilled ten miles southwest from Henderson in a Wildcat Field. Davis Oil & Gas, LLC will drill this well to a depth of 13,200-feet in the Brown, J F Survey, A-117. This well may also be drilled in the Jared (Travis Peak) Field, the Minden (Cotton Valley Consolidated) Field or the Overton (Cotton Valley Sand) Field. ****** COMPLETIONS Panola County

The Carthage, North has seen the Burnett Unit 9 Well No.16 completed by Lacy Operations, Ltd. This well is located 8.1 miles north of Carthage with a depth of 11,040-feet. When gauged on an adjustable choke, the well potentialed 925,000 cubic feet of gas. Production is in the Bossier Shale formation. ******

Lacy Operations, Ltd. has completed the Burnett Unit 10 Well No.15 in the Carthage Field. This well is located 9.8 miles northeast of Carthage with a depth of 9,750-feet. When gauged on an adjustable choke, the well potentialed 598,000 cubic feet of gas. Production is in the Cotton Valley formation. ******

When gauged on a 40/64-inch choke, the Oxsheer Unit Well No.4-H potentialed 3.106 million cubic feet of gas. This well was completed 2.15 miles north from Joaquin in the Carthage Field by Classic Operating Company, LLC. This well bottoms at 12,495-feet with production in the Cotton Valley formation. ******

The Steele, Corrie Unit Well No.A 25H is located 16.4 miles northeast of Carthage in the Carthage, North Field. Devon Energy Production Company, L.P. has completed this well to a depth of 14,050-feet. The well was gauged on an adjustable choke and potentialed 2.448 million cubic feet of gas. Production is in the Bossier Shale formation. ******

Patar Oil & Gas has completed the Zelma Austin Well No.4 in the Carthage Field. This well is located 11.7 miles southwest from Carthage with a depth of 10,266-feet. When gauged on a 16/64- inch choke, the well potentialed 960,000 cubic feet of gas. Production is in the Cotton Valley formation. ****** Rusk County

The Brachfield, Southeast Field has seen the Orr- Burks GU Well No.2 completed by Goodrich Petroleum Co. This well is lcaoted 13.2 miles southeast of Henderson with a depth of 10,593-feet. When gauged on a 64/64-inch choke, the well potentialed 136,000 cubic feet of gas. Production is in the Cotton Valley formation. ******

BP America Production Co. has completed the Michael Kangerga Gas Unit Well No.3 in the Oak Hill Field. This well is located 6.1 miles southwest from Tatum with a depth of 13,126-feet. When gauged on an adjustable choke, the well potentialed 3.217 million cubic feet of gas. Production is in the Cotton Valley formation.