EAST TEXAS DRILLING REPORT

DEVELOPMENTAL Panola County

The Carthage (Pettit, Lower) Field will see the Sharp, Belle Well No.1 drilled by Texas American Resources Co. This well will be drilled 2.5 miles north from Beckville in the Hamilton, W Survey, A-272 with a depth of 6,800-feet. ******

Chesapeake Operating, Inc. will drill the Roquemore Well No.1H in the Carthage, North (Bossier Shale) Field. This well will bottom at 17,000-feet in the Tuttle, D Sr. Survey, A-668 2.9 miles northwest from De- Berry. ******

In a lease 5.8 miles northeast from DeBerry, in the Bethany, East (Cotton Valley) Field, the Lizzie Burns Et Al Unit Well No.6 will be drilled by Chevron U.S.A. Inc. This well will bottom at 10,500-feet in the White, D Survey, A-748 and may also be drilled in the Bethany (Cotton Valley) Field or a Wildcat Field. ******

Exxon Mobil Corp. will drill the Bess Smtih Broderick Gas Unit 2 Well No.3H in the Carthage, North (Bossier Shale) Field. This well will bottom at 12,000-feet 8.54 miles southeast from Carthage in the TC RR Co. Survey, A-880. The well may also be drilled in a Wildcat Field, the Carthage (Cotton Valley) Field, the Carthage (Pettit, Upper) Field, the Carthage (Travis Peak 6400) Field or the Carthage (Pettit, Lower) Field. ****** Rusk County

Buffco Production Inc. will drill the Harris Well No.4 in a Wildcat Field. This well will be located 12 miles southwest from Henderson in the Reel, J Survey, A-33. This well will bottom at 12,000-feet and may also be drilled in the Minden (Cotton Valley) Field or the Minden, West (Travis Peak 7800) Field. ****** COMPLETIONS Cherokee County

The Blackstone Minerals Well No.5 is located 4.8 miles south from Forest in the Decker Switch Field. Chesapeake Operating, Inc. has completed this well to a depth of 12,043- feet. When gauged on a 14/64-inch choke, the well potentialed 480,000 cubic feet of gas. Production is in the Travis Peak formation. ******

In a lease 5.4 miles south from Forest, in the Decker Switch Field, the Blackstone Minerals Well No.3 has been completed by Chesapeake Operating, Inc. This well bottoms at 12,052-feet and potentialed 1.648 million cubic feet of gas when gauged on a 8/64-inch choke. Production is in the Travis Peak formation. ****** Harrison County

The Carthage, North Field has seen the Woodfin Well No.01H completed by NFR Energy, LLC to a depth of 14,880-feet. This well is located nine miles from Marshall. When gauged on a 24/64- inch choke, the well potentialed 5.392 million cubic feet of gas. Production is in the Bossier Shale formation. ******

Enervest Operating, L.LC. has completed the Hunt Gas Unit Wel No.15 in the Oak Hill Field to a depth of 10,750- feet. This well is located four miles southwest from Hallsville. When gauged on a 20/64-inch choke, the well potentialed 1.059 million cubic feet of gas. Production is in the Cotton Valley formation. ******

When gauged on an adjustable choke, the Mann Well No.4-H potentialed 4.318 million cubic feet of gas. Devon Energy Production Company, LP has completed this well 7.3 miles southwest of Waskom with a depth of 12,652-feet. Production is in the Cotton Valley formation. ******

The Woodlawn Field has seen the Pilot Well No.09H completed 4.50 miles northwest from Karnack by NFR Energy, LLC. This well bottoms at 12,206-feet and potentialed 4.351 million cubic feet of gas when gauged on a 48/64- inch choke. Production is in the Cotton Valley formation. ****** Panola County

When gauged on a 24/64- inch choke, the Sealey, Taylor GU Well No.3H potentialed 9.229 million cubic feet of gas. Goodrich Petroleum Co. has completed the well in the Beckville Field to a depth of 16,242-feet. This well is located 3.5 miles southwest from Fairplay. Production is in the Haynesville formation. ******

The Cottle-Reeves Unit Well No.4 is located 8.3 miles southeast from Carthage in the Carthage Field. Anadarko E&P Company LP has completed this well to a depth of 9,485-feet. When gauged on an adjustable choke, the well potentialed 739,000 cubic feet of gas. Production is in the Cotton Valley formation. ******

In a lease 3.6 miles southeast of DeBerry, in the Carthage, North Field, the Floyd Gas Unit Well No.26H has been completed by XTO Energy Inc. to a depth of 15,000-feet. When gauged on a 18/64- inch choke, the well potentialed 2.763 million cubic feet of gas. Production is in the Bossier Shale formation. ****** Rusk County

The Grissom Heirs Well No.2 is located 10.6 miles southwest of Henderson in the Jared Field. Davis Oil & Gas, LLC has completed this well to a depth of 11,405-feet. When gauged on a 12/64-inch choke, the well potentialed 1.406 million cubic feet of gas. Production is in the Travis Peak Peak formation. ******

When gauged on a 12/64- inch choke, the Clark Well No.2 potentialed 248,000 cubi cfeet of gas. This well is located 11.3 miles southeast of Henderson in the Brachfield, Southeast Field. A C Exploration, LLC completed this well. No depth was recorded. Production is in the Cotton Valley formation. ****** Tarrant County

The R.M. Alliston Gas Unit Well No.8 is located seven miles northwest from Saginaw in the Newark, East Field. This well was completed by Devon Energy Production Company, L.P. to a depth of 10,740-feet. When gauged on a 16/64- inch choke, the well potentialed 1.909 million cubic feet of gas. Production is in the Barnett Shale formation. ******

There has been five new wells completed in the Newark, East Field by Chesapeake Operating, Inc. The CISD Well No.3H is located 2.67 miles northwest from Crowley and potentialed 2.232 million cubic feet of gas when gauged on a 64/64-inch choke. No depth was recorded. The CISD Well No.4H is located 2.67 miles northwest from Crowley with a depth of 11,840-feet and potentialed 2.235 million cubic of gas when gauged on a 64/64-inch choke. The Leggett & Platt Well No.1H is located within city limits from Fort Worth with a depth of 10,980-feet and potentialed 5.146 million cubic feet of gas when gauged on a 0.75-inch choke. The CISD Well No.5H is located 2.67 miles northwest from Crowley with a depth of 12,474-feet and potentialed 2.722 million cubic feet of gas when gauged on a 64/64-inch choke. The Laguna Point Well No.2H is located 1.1 miles northwest from Crowley with a depth of 11,360-feet. This well was gauged on an 1-inch choke and potentialed 2.372 million cubic feet of gas. Production is in the Barnett Shale formation. ******

The Newark, East Field has seen seven new wells completed by XTO Energy Inc. The TRWD Twin Points Unit Well No.1H is located four miles southeast from Azle with a depth of 10,328-feet. No test data was recorded. The Creamer Unit Well No.2H is located two miles west from Fort Worth with a depth of 9,015-feet and potentialed 3.371 million cubic feet of gas when gauged on a 42/64- inch choke. The TRWD Unit Well No.H 8H is located four miles northwest from Avondale with a depth of 10,269-feet and potentialed 2.349 million cubic feet of gas when gauged on an 18/64-inch choke. The Armstrond TRWD Unit Well No.4H is located 1.1 miles southeast from Azle with a depth of 10,793-feet. No test data was recorded. The Pacific Unit Well No.B 1H is located 4.5 miles southwest from Kennedale with a depth of 10,618-feet. No test data was recorded. The Pacific Unit Well No.B 2H is located 4.5 miles southeast from Kennedale with a depth of 9,922-feet. No test data was recorded. The Sherrill Knapp Unit Well No.1H is located two miles northwest from Mansfield with a depth of 9,943-feet. No test data was recorded. Production is in the Barnett Shale formation. ******

Quicksilver Resources Inc. has completed three new wells in the Newark, East Field. The Exelon North Unit Well No.17H is located 6.05 miles southeast from Arlington with a depth of 7,449-feet and potentialed 6.830 million cubic feet of gas when gauged on an open choke. The Exelon North Unit Well No.19H is located six miles southwest from Arlington with a depth of 7,370-feet and potentialed 7.822 million cubic feet of gas when gauged on an open choke. The Exelon North Unit Well No.21H is located 6.08 miles southwest from Arlington with a depth of 7,453-feet and potentialed 7.317 million cubic feet of gas when gauged on an open choke. Production is in the Barnett Shale formation. ******

Devon Energy Production Company, L.P. has completed the Jarvis-Cohen Well No.6 and the Jarvis-Cohen Well No.5 in the Newark, East Field three miles southwest from Haslet. The No.6 bottoms at 7,202-feet and potentialed 1.451 million cubic feet of gas when gauged on a 18/64- inch choke. The No.5 bottoms at 7,293-feet and potentialed 1.822 million cubic feet of gas when gauged on a 18/64- inch choke. Production is in the Barnett Shale formation. ****** Upshur County

When gauged on a 48/64- inch choke, the Marshall, T.E. Well No.2 potentialed 1.640 million cubic feet of gas. Valence Operating Co. has completed the well in the Cedar Springs Field to a depth of 12,230-feet. This well is located 7.25 miles northwest from Ore City. Production is in the Cotton Valley, Lower formation. ******