EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Freestone County

XTO Energy Inc. will prepare to drill three new wells. The Hugh D. Whitaker Gas Unit II Well No.10 will be drilled 0.8 miles southeast from Donie in the Bear Grass (Cotton Valley Consolidated) Field. This well will bottom at 15,000-feet in the Peck, N Survey, A-820 and may also be drilled in the Bear Grass (Pettit) Field or the Bear Grass (Travis Peak) Field. The Williford Gas Unit No.1 Well No.3 and the Williford Gas Unit No.1 Well No.7 will bottom at 13,000- feet in the Teague (Cotton Valley Bossier Consolidated) Field. The No.3 will be drilled 3.6 miles northwest from Fairfield in the Park, M Survey, A- 517. The No.7 will be drilled 3.8 miles northwest from Fairfield in the Clements, E Survey, A-142.

******

Harrison County

In a lease 5.24 miles southeast from Leigh in the Waskom (Haynesville) Field, the Youngblood Well No.1H will be drilled by Chesapeake Operating, Inc. This well will bottom at 12,000-feet in the Mc Millan, J Survey, A-486.

******

The Mobley Gas Unit Well No.13 will be drilled 6.3 miles southwest from Marshall in the Blocker (Cotton Valley) Field. Valence Operating Co. will drill the well in the Payne, J Survey, A-543. This well may also be drilled in the Blocker (Travis Peak) Field, the Carthage, North (Bossier Shale) Field or the Blocker (Page) Field.

******

NFR Energy, LLC will drill the Woodley Well No.4H in the Carthage, North (Bossier Shale) Field. This well will be located 4.5 miles southeast from Gill in the Humphries, W Survey, A-299 with a depth of 12,000-feet.

******

Henderson County

XTO Energy Inc. is preparing to drill the C.L. Leopard Gas Unit Well No.3 in the Tri- Cities (Cotton Valley) Field. This well will be located 5.1 miles southeast from Malakoff in the Y'Barbo, J M Survey, A- 846. Total depth will be 12,000-feet.

******

Johnson County

The Newark, East (Barnett Shale) Field will see the Green Ridge Lane Well No.2H, the V Collins Well No.1H and the Skaggs Well No.7H drilled by Chesapeake Operating, Inc. The No.2H well will be located 15.5 miles northeast from Cleburne in the Ross, J M Survey, A-747 and will bottom at 9,000-feet. The No.1H well will be located 10.4 miles north from Cleburne in the Weathers, U A D Survey, A-904 with a depth of 9,000-feet. The No.7H well will be located 4.2 miles south from Cleburne in the Townsend, S Survey, A-840 with a depth of 9,000-feet.

******

The Evans/Randle Unit Well No.2H, the Evans/Randle Unit Well No.3H and the Evans/Randle Unit Well No.4H will be drilled 7.1 miles northwest from Godley in the Newark, East (Barnett Shale) Field. These wells will be drilled to a depth of 8,999-feet by EOG Resources, Inc. in the Bright, H G Survey, A-78.

******

XTO Energy Inc. will drill the Colonial A Unit Well No.11H in the Newark, East (Barnett Shale) Field. This well will be located 4.7 miles southeast from Burleson with a depth of 11,000-feet in the Renfro, J A Survey, A-740.

******

Nacogdoches County

EnerQuest Corp. will drill the Irwin "A" Well No.9 and the Irwin Well No.12 in a Wildcat Field. The No.9 will be drilled 3.5 miles southeast from Garrison in the Oxsheer, W E Survey, A-420 with a depth of 11,000-feet. This well may also be drilled in the Garrison (Travis Peak) Field or the Naconiche Creek (Rodessa-Travis Peak Consolidated) Field. The No.12 will be drilled 3.7 miles southeast from Garrison in the Pearces, W J C Survey, A-447 with a depth of 11,000-feet. This well may also be drilled in the Garrison (Travis Peak) Field.

******

Samson Lone Star, LLC will drill the Sean Thomas GU 1 Well No.1 in the Douglass, West (Travis Peak) Field. This well will bottom at 12,000-feet nine miles northwest from Nacogdoches in the Bailey, H Survey, A-6. This well may also be drilled in the Nacogdoches, East (James Lime) Field, the Miyagi (Pettit) Field, the Little Ears (Pettit Lime) Field, the Trawick (Pettit-Travis Peak Consolidated) Field or a Wildcat Field.

******

The Goober GU 1 Well No.1 and the Opie GU 1 Well No.8 will be drilled in the Martinsville (Travis Peak) Field by Samson Lone Star, LLC. The No.1 well will be drilled 16.5 miles east from Nacogdoches to a depth of 15,000-feet in the Chirino, J A Survey, A-17. The No.8 well will be drilled 18 miles east from Nacogdoches to a depth of 11,500-feet in the Jose Ignacio Y'Barbo Survey, A- 60. These wells may also be drilled in the Nacogdoches, East (James Lime) Field, a Wildat Field or the Nacogdoches, East (Pettit) Field.

******

In a lease ten miles west from Nacogdoches in the Douglass, West (Travis Peak) Field, the R.H. Frank GU 1 Well No.7 will be drilled by Samson Lone Star, LLC. This well will bottom at 12,000-feet in the Wilson, J Survey, A-59. The well may also be drilled in the Miyagi (Pettit) Field, the Little Ears (Pettit Lime) Field, a Wildcat Field or the Nacogdoches, East (James Lime) Field.

******

The Desha GU 1 Well No.9 will be drilled eleven miles northwest from Nacogdoches in the Douglass, West (Travis Peak) Field. This well will bottom at 12,000-feet drilled in the Tobar, J Survey, A-54 by Samson Lone Star, LLC. The well may also be drilled in a Wildcat Field, the Little Ears (Pettit Lime) Field, the Nacogdoches, East (James Lime) Field or the Miyagi (Pettit) Field.

******

Panola County

The Carthage (Cotton Valley) Field will see the CGU 9 Well No.13 and the CGU 36 Well No.7 drilled by Anadarko E&P Company LP. The No.13 well will be drilled 3.9 miles southwest from Carthage in the Smith, M Survey, A-607 and will bottom at 12,000-feet. The No.7 well will be drilled 9.6 miles southeast from Carthage in the West, H Survey, A-697 with a depth of 12,000-feet.

******

Classic Operating Company LLC will drill the Frost Lumber Company Well No.4 in the Carthage (Cotton Valley) Field. This well will be located 2.75 miles west from Joaquin in the MK&TE RR Co. Survey, A- 913. The well will bottom at 10,000-feet and may also be drilled in the Joaquin (Travis Peak) Field.

******

In a lease 1.6 miles northeast from Tatum, in the Carthage, North (Bossier Shale) Field, the Hemby Well No.3H will be drilled by NFR Energy, LLC. This well will bottom at 13,000-feet in the Reel, J Survey, A-564.

******

The Carthage (Cotton Valley) Field will see the Woolworth Gas Unit Well No.6 drilled by Devon Energy Production Company, L.P. This well will bottom at 11,000-feet in the Jones, J F Survey, A-364 7.5 miles southeast from Carthage.

******

Robertson County

In a lease 11.6 miles northeast from Franklin in the Bald Prairie (Cotton Valley Consolidated) Field, the Mitchell Gas Unit No.1 Well No.28 will be drilled by XTO Energy Inc. This well will bottom at 13,800-feet in the Denson, O Survey, A-126.

******

The Hanhart Gas Unit Well No.4 will be drilled 4.9 miles west from Franklin in the Bald Prairie (Cotton Valley Consolidated) Field. This well will bottom at 14,900-feet in the Reed, H Survey, A-35 drilled by XTO Energy Inc.

******

XTO Energy Inc. will drill prepare to drill an additional well in the Bald Prairie (Cotton Valley Consolidated) Field. The Griffin Gas Unit Well No.2 will be drilled 4.5 miles southwest from Franklin to a depth of 15,400-feet. This well will lie in the Mc Millan, E Survey, A- 222.

******

San Augustine County

In a lease 5.2 miles northeast from Attoyac in the Angie (James Lime) Field, the Timberstar Weaver Well No.4H will be drilled by Southwestern Energy Production Co. This well will bottom at 7,900-feet in the SP RR Co./Weaver, E Survey, A-614.

******

Shelby County

A Wildcat Field will see the Green Well No.1 drilled by Burk Royalty Company, Ltd. This well will be located 5.73 miles northwest from Center in the Strickland, D Survey, A- 633 withy a depth of 15,000- feet. This well may also be drilled in the Stockman (Cotton Valley) Field or the Center (Haynesville) Field.

******

The Kimbro Well No.A 2 will be drilled 9.3 miles southwest from Center in the Angie (James Lime) Field. Cabot Oil & Gas Corp. will drill this well to a depth o 9,500-feet in the Kimbro, N Survey, A-405.

******

A Wildcat Field will see the Tatum Well No.1H, the Sullivan Well No.1H and the Dearing Well No.1H drilled by XTO Energy Inc. The Tatum Well No.1H will be located 11 miles southwest from Center in the Martin, C Survey, A-508 with a depth of 13,100-feet. The Sullivan Well No.1H will be located 10.7 miles south from Center in the Odell, J M Survey, A-543. The Dearing Well No.1H will be located 10.2 miles south from Center in the Todd, S Survey, A-728 with a depth of 13,000-feet.

******

Endeavor Natural Gas, LP will drill the BP Cottle Unit Well No.1 in the Stockman (Travis Peak) Field. This well will be located 6.5 miles southwest from Center with a depth of 10,500-feet in the Cottle, G W Survey, A-137. The well may also be drilled in a Wildcat Field.

******

Tarrant County

Chesapeake Operating, Inc. will prepare to drill nine new wells in the Newark, East (Barnett Shale) Field to a depth of 9,000-feet. The Arakanas Well No.1H and the Arakanas Well No.2H will be drilled within city limits from Arlington in the Langley, J Survey, A-975. The Armet Dale Street South Well No.4H and the Armet Dale Street South Well No.5H will be drilled 1.9 miles southeast from Crowley in the I & GN RR Co. Survey, A-831. The TCC Southwest Well No.1H will be drilled 17.3 miles southeast from Fort Worth in the Ferrell, W J Survey, A-515. The Barksdale South Well No.2H and the Barksdale South Well No.3H will be drilled 3.7 miles east from Mansfield in the Brandenburg, H Survey, A-129. The Work Well No.1H will be drilled within city limits from Fort Worth in the Norris, W Survey, A-1165. The Foil Well No.1H will be drilled 3.13 miles northwest from Crowley in the Flores, I Survey, A-507.

******

******

Upshur County

The Delrose Gas Unit 8 Well No.2 H will be drilled 2.72 miles north from Delrose in the Delorose (Haynesville) Field. This well will be drilled to bottom at 12,600-feet in the Stiles, J R Survey, A-453 by Exxon Mobil Corp. The well may also be drilled in a Wildcat Field or the Delrose (Bossier Sand) Field.

****** COMPLETIONS

Denton County

The Red Hot Unit Well No.2H is located two miles southeast from Bartonville in the Newark, East Field. This well bottoms at 13,545-feet drilled by XTO Energy Inc. No test data was recorded. Production is in the Barnett Shale formation.

******

Freestone County

XTO Energy Inc. has completed two new wells. The Oakes-Turner Gas Unit No.1 Well No.18 is located 11.8 miles southeast of Teague in the Farrar Field. This well bottoms

at 12,950-feet and potentialed 324,000 cubic feet of gas when gauged on a 48/64-inch choke. Production is in the Cotton Valley Lime formation. The Cochrum Gas Unit Well No.22 is located 4.2 miles northwest of Donie in the Freestone Field. This well bottoms at 13,070-feet and potentialed 1.382 million cubic feet of gas when gauged on a 48/64-inch choke. Production is in the Cotton Valley-Bossier Consolidated formation.

******

Harrison County

The Stratocaster Gas Unit Well No.1H has been completed 5.32 miles northwest from Waskom in the Waskom Field. Petrohawk Operating Co. has completed this well to a depth of 15,516-feet. When gauged on a 24/64-inch choke, the well potentialed 9.657 million cubic feet of gas. Production is in the Haynesville formation.

******

NFR Energy, LLC has completed the D'Asto Well No.03 in the Carthage, North Field. This well was drilled seven miles southeast from Marshall with a depth of 11,491-feet. When gauged on a 48/64-inch choke, the well potentialed 710,000 cubic feet of gas. Production is in the Bossier Shale formation.

******

EnerVest Operating, L.L.C. has completed the Hunt Gas Unit Well No.4- D and the Hunt Gas Unit Well No.17-D in the Oak Hill Field. The No.4-D is located four miles southwest from Hallsville with a depth of 10,916-feet and potentialed 1.023 million cubic feet of gas when gauged on a 28/64-inch choke. The No.17-D is located four miles southwest from Hallsville with a depth of 10,900-feet and potentialed 1.663 million cubic feet of gas when gauged on a 18/64-inch choke. Production is in the Cotton Valley formation.

******

Rusk County

The Minor, A. Gas Unit Well No.14 and the Minor, A. Gas Unit Well No.23 have been completed in the Oak Hill Field by Energen Resources Corp. The No.14 is located four miles northwest from Tatum with a depth of 10,600-feet. This well was gauged on an 11/64-inch choke and potentialed 1.232 million cubic feet of gas. The No.23 is located 6.2 miles northwest from Tatum with a depth of 10,605-feet. This well was gauged on an 11/64-inch choke and potentialed 1.353 million cubic feet of gas. Production is in the Cotton Valley formation.

******

NFR Energy, LLC has completed two new wells. The Pitner GU Well No.02 is located 2.36 miles northwest from Henderson with a depth of 11,980-feet in the Oak Hill Field. This well was gauged on a 42/64-inch choke, the well potentialed 2.659 million cubic feet of gas. Production is in the Cotton Valley formation. The Jarrell Unit Well No.07 is located 7.80 miles southeast from Henderson with a depth of 10,872-feet in the Minden Field. This well was gauged on a 48/64-inch choke and potentialed 2.411 million cubic feet of gas. Production is in the Cotton Valley Consolidated formation.

******