EAST TEXAS DRILLING REPORT

DEVELOPMENTAL Panola County

In a lease 6.6 miles southeast from DeBerry in the Carthage, North (Bossier Shale) Field, the PEC Minerals Gas Unit No.1 Well No.1H will be drilled by XTO Energy Inc. This well will bottom at 18,000-feet in the Pearce, S Survey, A-525. ******

The Holt Unit 1 Well No.6 will be drilled by Lacy Operations, Ltd. in the Carthage (Cotton Valley) Field. This well will bottom at 10,215-feet 3.6 miles northeast from Beckville in the Williams, A H Survey, A- 731. ******

Classic Operating Company LLC will drill the Roquemore GU Well No.2 in the Carthage, South (Cotton Valley) Field. This well will be located 1.3 miles southwest from Fair Play in the Collins, W Survey, A-141 and will bottom at 10,030-feet. ****** Rusk County

The Rogers, Finis Gas Unit Well LNo.6H will be drilled 3.1 miles northwest from Henderson in the Carthage, North (Bossier Shale) Field. This well will bottom at 12,000-feet in the De La Vina, J C Survey, A- 41 and may also be drilled in a Wildcat Field. ******

In a lease six miles northeast from Cushing, in the Trawick (Pettit-Travis Peak Consolidated) Field, the Trawick Gas Unit 57 Well No.104 will be drilled by Cabot Oil & Gas Corp. This well will lie in the Button, R S Survey, A-127 with a depth of 10,000-feet. ******

Goodrich Petroleum Co. will drill the Billy Harris Hay Well No.1H to a depth of 18,000- feet in the Beckville (Haynesville) Field. This well will be located 3.4 miles southwest from Tatum in the Martin, D Survey, A-526 and may also be drilled in the Beckville (Travis Peak) Field. ****** Smith County

The M. Starnes Estate Well No.1 will be drilled 0.7 miles southeast from Wiona in a Wildcat Field. This well will be drilled by OPS Group Limited to a depth of 11,700-feet in the Lagron, M Survey, A-564. ****** COMPLETIONS ****** Panola County

When gauged on a 18/64- inch choke, the Marvin Gulley Well No.21H potentialed 2.957 million cubic feet of gas. This well was completed in the Carthage, North Field to a depth of 15,068-feet by XTO Energy Inc. Location is 4.7 miles southeast of DeBerry with production in the Bossier Shale formation. ******

Anadarko E & P Company LP has completed the Cottle- Reeves Unit Well No.5 in the Carthage Field. This well is located 8.3 miles southeast from Carthage with a depth of 9,375-feet. When gauged on an adjustable choke, the well potentialed 493,000 cubic feet of gas. Production is in the Cotton Valley formation. ****** Rusk County

When gauged on a 79/64- inch choke, the Sparkman Gas Unit Well No.3 potentialed 1.721 million cubic feet of gas. Enervest Opreating, LLC has completed this well 1.73 miles northwest from Minden in the Brachfield, Southeast Field to a depth of 10,850- feet. Production is in the Cotton Valley formation. ******

SandRidge Exploration and Production, LLC has completed the Cherokee Water Company Unit Well No.15 and the Cherokee Water Company Unit Wel No.16 in the Oak Hill Field. The wells are located 6.2 miles northwest of Tatum. The No.15 bottoms with a depth of 11,132-feet. When gauged on a 40/64- inch choke, the well potentialed 3.054 million cubic feet of gas. The No.16 bottoms with a depth of 10,965-feet. When gauged on a 32/64- inch choke, the well potentialed 1.768 million cubic feet of gas. Production is in the Cotton Valley formation. ******