EAST TEXAS DRILLING REPORT

EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Freestone County

There will be five new wells drilled in the Teague (Cotton Valley-Bossier Consolidated) Field by XTO Energy Inc. The H.D. Black Gas Unit Well No.4 will be located one mile southeast from Teague with a depth of 13,000-feet. The H.D. Black Gas Unit Well No.7 will be located 1.5 miles southeast from Teague with a depth of 13,200-feet. Both of these wells will lie in the Whitmore, T P Survey, A-638. The Boyd "A" Gas Unit Well No.10H will be drilled 4.6 miles southwest from Fairfield with a depth of 14,900-feet in the Caradine, I Survey, A-116. The Hartley Unit Well No.4 and the Harltley Unit Well No.5 will be drilled in the Brewer, G Survey, A-5 to a depth of 13,000-feet. The No.4 will be drilled 1.1 miles southwest from Teague and the No.5 will be drilled 1.9 miles southwest from Teague.

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The Reed "E" Gas Unit Well No.20 will be drilled 2.9 miles southwest from Donie in the Bear Grass (Cotton Valley Consolidated) Field. XTO Energy Inc. will drill this well to bottom at 15,000-feet in the Connelly, I Survey, A-117. This well may also be drilled in the Bear Grass (Travis Peak) Field or the Bear Grass (Pettit) Field.

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Gregg County

The Griffin Ranch Gas Unit 6 Well No.12 will be drilled 3.7 miles northeast from Kilgore in the Danville (Travis Peak-Cotton Valley Consolidated) Field. This well will be drilled to bottom at 13,000- feet drilled in the Grisham, J J Survey, A-84 by Exco Operating Company, LP.

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Harrison County

In a lease 5.5 miles northwest from Waskom, in the Waskom (Haynesville) Field, the Chad Ellis Gas Unit Well No.2H will be drilled by Samson Lone Star, LLC. This well will bottom at 13,000-feet in the Walling, J C Survey, A-737.

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Johnson County

The Newark, East (Barnett Shale) Field will see the Cleburne State Park Well No.5H, the Bunny Leech Unit Well No.2H and the Bunny Leech Unit Well No.4H drilled by XTO Energy Inc. The No.5H well will be located 5.5 miles southwest from Bono in the Rogers, W E Survey, A-1142. The No.2H and the No.4H wells will be located 5.1 miles northeast from Keene in the Kimbell, A G Survey, A-474. These wells will bottom at 11,000-feet.

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The Gallagher Unit Well No.6H will be drilled in the Newark, East (Barnett Shale) Field by EOG Resources, Inc. This well will be located 4.4 miles southwest from Bono with a depth of 8,999-feet in the Allen, J J Survey, A-1223.

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Devon Energy Production Company, L.P. will drill the Moore, M.J. Well No.1H in the Newark, East (Barnett Shale) Field. This well will be located 8.5 miles northeast from Cleburne in the Matty, T Survey, A-538 with a depth of 9,000-feet.

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There will be a new well drilled in the Newark, East (Barnett Shale) Field by Chesapeake Operating, Inc. to a depth of 9,000-feet. The Cates Well No.4H will be drilled 8.2 miles northwest from Cleburne in the Martin, J Survey, A-622.

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The Newark, East (Barnett Shale) Field will see the Springwood Unit Well No.1H drilled by Chief Oil & Gas LLC. This well will be located six miles south from Mansfield in the Harris, J W Survey, A-1072 with a depth of 8,900-feet.

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Leon County

The Wasson Well No.1 will be drilled 3.4 miles southeast from Buffalo in the Red Oak (FB-A, Sub Clarksville) Field by Roberts & Hammack Inc. This well will bottom at 6,700- feet in the Green, T W Survey, A-302. The well may also be drilled in the Red Oak (Dexter) Field.

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XTO Energy Inc. will drill the Gail King Well No.36H 6.7 miles northwest from Jewett in the Bear Grass (Cotton Valley Consolidated) Field. This well will be drilled to bottom at 19,000-feet in the Rejon, M C Survey, A-19. The well may also be drilled in the Bear Grass (Travis Peak) Field or the Bear Grass (Pettit) Field.

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Limestone County

In a lease 16.1 miles southeast from Thornton in the Farrar (Cotton Valley Lime) Field, the N.E. Shorter Gas Unit No.1 Well No.16H will be drilled by XTO Energy Inc. This well will bottom at 18,000-feet in the Rejon, M C Survey, A-26. This well may also be drilled in the Farrar (Travis Peak) Field or the Farrar, Southeast (Pettit) Field.

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XTO Energy Inc. will drill the Sanders Creek Gas Unit Well No.1 in the Farrar (Cotton Valley Lime) Field. This well will be located 6.8 miles southwest from Donie in the Rejon, M C Survey, A-26 with a depth of 14,000-feet. This well may also be drilled in the Farrar, Southeast (Pettit) Field or the Farrar (Travis Peak) Field.

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The Battle Well No.2 will be drilled 13.3 miles southeast from Groesbeck in the Farrar (Cotton Valley Lime) Field. This well will be drilled to a depth of 14,000-feet in the Rejon, M C Survey, A-26 by CH4 Energy II, LLC. The well may also be drilled in the Farrar (Travis Peak) Field or the Farrar, Southeast (Pettit) Field.

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Nacogdoches County

Samson Lone Star, LLC will drill the J&A Durham GU 1 Well No.5 and the Jillian Kay GU 1 Well No.2 in the Douglass, West (Travis Peak) Field. The No.5 well will bottom at 12,000-feet nine miles northwest from Nacogdoches in the De Los Santos Coy, M & Bros. Survey, A-21. The well may also be drilled in the Little Ears (Pettit) Field, a Wildcat Field, the Miyagi (Pettit) Field or the Nacogdoches, East (James Lime) Field. The No.2 well will bottom at 12,000-feet 6.5 miles southeast from Cushing in the Strode, S Survey, A-502 with a depth of 12,000-feet. This well may also be drilled in the Little Ears (Pettit Lime) Field, the Trawick (Pettit-Travis Peak Consolidated) Field, the Miyagi (Pettit) Field, a Wildcat Field or the Nacogdoches, East (James Lime) Field.

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EOG Resources, Inc. is preparing to drill the Erwin Well No.1 7.8 miles northeast from Nacogdoches. This well will bottom at 14,000-feet in the Martinsville (Travis Peak) Field. This well will lie in the Cordova, J & Bros. Survey, A- 20 and may also be drilled in a Wildcat Field.

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Navarro County

The Powell Field will see the Beverly White Well No.1 drilled to a depth of 3,600-feet by Kilmarnock Oil Company, Inc. This well will be drilled six miles southeast from Corsicana in the White, J Survey, A-818.

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Panola County

In a lease 11.5 miles southeast from Carthage, in the Carthage, Southeast (Cotton Valley) Field, the Louis Werner Well No.5H will be drilled by Samson Lone Star, LLC. This well will bottom at 9,450-feet in the Gillaspy, G Survey, A- 222.

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Petroquest Energy, L.L.C. will prepare to drill the Werner- Lagrone Well No.2H in the Carthage, East (Bossier) Field. This well will be drilled 12.3 miles northeast from Carthage in the Anderson, W G Survey, A-9 with a depth of 10,400- feet. This well may also be drilled in the Carthage, North (Bossier Shale) Field.

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The Searcy Gas Unit Well No.16 will be drilled 8.9 miles northwest from Carthage in the Beckville, West (Cotton Valley) Field by Anadarko E&P Company LP. This well will bottom at 12,000-feet in the Smith, W Survey, A-660.

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Robertson County

XTO Energy Inc. will drill the Mitchell Gas Unit No.1 Well No.17 and the Mitchell I Well No.27 in the Bald Prairie (Cotton Valley Consolidated) Field. Both wells will lie in the Denson, O Survey, A-126 11.6 miles northeast from Franklin. The No.17 well will bottom at 13,800-feet and the No.27 well will bottom at 13,700-feet.

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Rusk County

The Trawick Gas Unit 57 Well No.103 will be drilled by Cabot Oil & Gas Corp. in a Wildcat Field. This well will bottom at 10,000-feet 6.1 miles northeast from Cushing in the Button, R S Survey, A-127 and may also be drilled in the Trawick (Pettit-Travis Peak Consolidated) Field.

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San Augustine County

Southwestern Energy Production Co. will drill the ADJ Minerals Well No.2H to a depth of 7,900-feet. This well will be located 4.1 miles northeast from Attoyac in the Angie (James Lime) Field and will lie in the Dillard, A Survey, A-98.

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Shelby County

The Grand Poobah Well No.1H will be drilled 11.5 miles southeast from Shelbyville in the Huxley (Fredricksburg) Field. This well will be drilled to a depth of 4,000-feet in the Smith, A Survey, A-641 by Samson Lone Star, LLC.

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In a lease 9.51 miles southwest from Center in the Angie (James Lime) Field, the Temple Inland Well No.3 and ttheTemple-Inland Well No.4 will be drilled by Cabot Oil & Gas Corp. These wells will bottom at 9,500-feet in the Bradshaw, G W Survey, A-93.

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Burk Royalty Company, Ltd. will drill the Pearson Well No.1 in a Wildcat Field. This well will bottom at 15,000-feet 8.6 miles west from Center in the West, H Survey, A-759. The well may also be drilled in the Center (Haynesville) Field or the Stockman (Cotton Valley) Field.

Smith County

The Katherine Luscombe Gas Unit Well No.4 and the Katherine Luscombe Gas Unit

Well No.5 will be drilled in the Noonday (Travis Peak) Field by Valence Operating Co. The wells will bottom at 15,000-feet in the Quevedo, T Survey, A-18. The No.4 will be located 1.7 miles north from Noonday and the No.5 will be located 1.5 miles north from Noonday.

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Tarrant County

There will be four new wells drilled by Chesapeake Operating, Inc. The Winscott Well No.J 1H and the Winscott Well No.J 3H will be drilled 14.5 miles southwest from Fort Worth in the SF Co. Survey, A- 1841. The Doug A Well No.2HR will be drilled within city limits from Fort Worth in the Carroll, N H Survey, A- 264. the Westworth Village Well No.12H will be drilled within city limits from Fort Worth in the Connelly, C Survey, A-319. These wells will bottom at 9,000-feet.

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Finley Resources, Inc. will drill the East Side Unit Well No.2H and the East Side Unit Well No.3H to a depth of 7,500-feet in the Newark, East (Barnett Shale) Field. These wells will be drilled 1.8 miles east from Fort worth in the Cross, R Survey, A-304.

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In a lease 3.2 miles northwest from White Settlement, in the Newark, East (Barnett Shale) Field, the Tapp 'N Gas Unit Well No.4H will be drilled by Carrizo Oil & Gas, Inc. This well will bottom at 9,000-feet in the Haynes, A S Survey, A-2009.

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Upshur County

The Moon Unit Well No.1 will be drilled by Bobcat Resources, L.L.C. in a Wildcat Field. This well will be drilled 8.9 miles east from Gilmer in the Loyd, S Survey, A-289 to a depth of 12,000-feet. This well may also be drilled in the Sand Hill (Cotton Valley Lime) Field, the Ore City (Travis Peak) Field or the Sand Hil (Cotton Valley Sand) Field.

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Cherokee County

In a lease 4.6 miles south from Forest in the Decker Switch Field, the Blackstone Minerals Well No.4 has been completed by Chesapeake Operating, Inc. This well potentialed 1.538 million cubic feet of gas when gauged on a 14/64- inch choke. Production is in the Travis Peak formation.

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The Doyle Creek Field has seen the Weatherford Well No.1 completed to a depth of 12,427-feet by Chesapeake Operating, Inc. This well is located 4.9 miles west from Wells. This well was gauged on a 12/64-inch choke and potentialed 2.633 million cubic feet of gas. Production is in the Travis Peak formation.

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Freestone County

XTO Energy Inc. has completed four new wells. The first two wells were completed in the Teague Field. The Deleon Gas Unit Well No.1 is located three miles northeast from Kirvin with a depth of 11,440- feet and potentialed 40,000 cubic feet of gas when gauged on a 48/64-inch choke. Production is in the Travis Peak formation. The Clarke Gas Unit Well No.25 is located 6.2 miles southeast of Teague with a depth of 12,435-feet and potentialed 586,000 cubic feet of gas when gauged on a 48/64- inch choke. Production is in the Cotton Valley-Bossier Consolidated formation. The last two wells were completed in the Freestone Field. The J.A. Gilliam Gas Unit II Well No.16 is located six miles southwest of Teague with a depth of 12,820- feet and potentialed 1.108 million cubic feet of gas when gauged on a 48/64-inch choke. The Jack Knight Heirs Well No.2 is located 4.2 miles southwest of Dew with a depth of 12,580-feet and potentialed 1.188 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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Gregg County

The Burton Well No.1 is located 8.2 miles southeast of Longview in a Wildcat Field. Shoco Production, L.P. has completed this well to a depth of 7,785-feet. This well was gauged on 14/64-inch choke and flowed with 115 barrels of crude.

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Samson Lone Star, LLC has completed the Daniels, Judge G.U. 1 Well No.17 and the Daniels, Judge G.U. 1 Well No.25 in the Danville Field. The No.17 is located 2.5 miles east of Kilgore with a depth of 10,975-feet and potentialed 2.202 million cubic feet of gas. The No.25 is located 2.5 miles east of Kilgore with a depth of 10,975-feet and potentialed 647,000 cubic feet of gas when gauged on a 24/64-inch choke.

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Johnson County

There has been three wells completed by Chesapeake Operating, Inc. in the Newark, East Field. The Sandlin Well No.1H is located 2.1 miles northwest from Cleburne with a depth of 9,467-feet and potentialed 2.671 million cubic feet of gas when gauged on an 1-inch choke. The McAnier Well No.5H is located 3.4 miles northwest from Cleburne with a depth of 10,765-feet and potentialed 1.821 million cubic feet of gas when gauged on an 1-inch choke. The City of Cleburne Well No.6H is located 4.6 miles north from Cleburne with a depth of 10,452- feet and potentialed 2.523 million cubic feet of gas when gauged on an 1-inch choke. Production is in the Barnett Shale formation.

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In a lease 4.54 miles northeast from Alvaredo in the Newark, East Field, the Green Highlander Unit Well No.2H has been completed by XTO Energy Inc. This well bottoms at 10,969-feet and potentialed 1.649 million cubic feet of gas when gauged on a 20/48-inch choke. Production is in the Barnett Shale formation.

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Panola County

Patara Oil & Gas has completed the C. Brooks Well No.6 in the Carthage Field. This well is located 12.7 miles northwest from Carthage with a depth of 10,230-feet. When gauged on a 16/64-inch choke, the well potentialed 1.061 million cubic feet of gas. Production is in the Cotton Valley formation.

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The J.T. Ross Unit Well No.1HS has been completed by Chevron U.S.A. Inc. in the Carthage, North Field. This well is located 4.8 miles east from Beckville with a depth of 15,505-feet. This well was gauged on a 20/64-inch choke and potentialed 5.633 million cubic feet of gas. Production is in the Bossier Shale formation.

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When gauged on an adjustable choke, the Kyle, J.R. - A- Well No.14 potentialed 719,000 cubic feet of gas. This well was completed by Anadarko E&P Company LP to a depth of 9,385-feet 5.9 miles southeast from Carthage in the Carthage Field. Production is in the Cotton Valley formation.

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Robertson County

There have been three new wells completed by XTO Energy Inc. The Moody Gas Unit No.2 Well No.1 and the N.R. Lutz Lease Well No.2 have been completed in the Calvert Field. The No.1 is located 4.10 miles southeast of Calvert with a depth of 13,750-feet. When gauged on a 18/64-inch choke, this well potentialed 1.143 million cubic feet of gas. The No.2 is located 2.9 miles northwest of Hearne with a depth of 14,420-feet. When gauged on a 48/64-inch choke, this well potentialed 1.194 million cubic feet of gas. Production is in the Cotton Valley formation. The Webb Gas Unit Well No.1 is located 4.7 miles southeast of Calvert in the Bald Prairie Field with a depth of 14,053-feet. When gauged on a 17/64-inch choke, this well potentialed 8.940 million cubic feet of gas. Production is in the Cotton Valley Consolidated formation.

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Rusk County

The Minden Field has seen the Smith, R.T. Well No.3-U completed by Basa Resources, Inc. This well is located nine miles southeast of Henderson with a depth of 10,855-feet. When gauged on a 24/64-inch choke, the well potentialed 1.212 million cubic feet of gas. Production is in the Cotton Valley Consolidated formation.

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