EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Cherokee County

In a lease 2.3 miles northwest from Jacksonville, in a Wildcat Field, the Campbell Well No.1 will be drilled by Parten Operating Inc. This well will lie in the Pineda, J Survey, A-40 with a depth of 5,200-feet.

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Parten Operating Inc. will drill the H D Industries Well No.1 in a Wildcat Field. This well will be drilled 4.3 miles southwest from Jacksonville in the Merrill, J Survey, A-564 with a depth of 5,200-feet.

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Gregg County

In a lease 8.2 miles east from Longview, in a Wildcat Field, the Gage Well No.1 will be drilled by Shoco Production, L.P. This well will be drilled to a depth of 11,000-feet in the Thorn, F Survey, A-5.

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Panola County

Anadarko E&P Company LP will drill the CGU 14 Well No.20 in the Carthage (Cotton Valley) Field. This well will be located 3.6 miles northwest from Carthage in the Duncan, S Survey, A- 158 and will bottom at 12,000-feet.

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The Pitts A Unit Well No.16 will be drilled by ConocoPhillips Co. in the Carthage (Cotton Valley) Field. This well will be located nine miles southeast from Carthage in the Tippett, J Survey, A-666 with a depth of 10,100-feet.

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XTO Energy Inc. will drill the Pec Minerals Gas Unit No.1 Well No.2H in the Carthage, North (Bossier Shale) Field. This well will be drilled to a depth of 18,000-feet 6.7 miles southeast from DeBerry in the Pearces, S Survey, A-525.

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The Moore Unit Well No.22 will be drilled 1.6 miles northeast from Carthage in the Carthage (Cotton Valley) Field. This well will be drilled by Devon Energy Production Company, L.P. to a depth of 11,000-feet in the Thompson, W D Survey, A-672.

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Anadarko E&P Company LP will drill the Moore, Lloyd Gas Unit Well No.11 in the Carthage (Cotton Valley) Field. This well will be located 5.5 miles southeast from Carthage with a depth of 12,000-feet and will lie in the Anderson, W Survey, A-4.

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In a lease 2.6 miles northwest from Beckville in the Beckville (Cotton Valley) Field, the Hamilton, Glovier Well No.18 will be drilled by Texas American Resources Co. This well will bottom at 10,810-feet in the Hamilton, W Survey, A- 272.

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Rusk County

The Dudley Well No.1 will be drilled 2.4 miles southeast from Kilgore by Katy Resources ETX, LLC. This well will bottom at 12,000-feet in the Landers, L Survey, A-477 in a Wildcat Field. This well may also be drilled in the Danville (Travis Peak-Cotton Valley Consolidated) Field.

COMPLETIONS

Gregg County

The Danville Field has seen the Daniels, Judge G.U. 1 Well No.24 and the Daniels, Judge G.U. 1 Well No.13 has been completd by Samson Lone Star, LLC. The No.24 is located 2.5 miles east of Kilgore with a depth of 10,910-feet and potentialed 3.021 million cubic feet of gas when gauged on a 34/64-inch choke. The No.13 is located 2.5 miles east of Kilgore with a depth of 10,910-feet and potentialed 2.496 million cubic feet of gas when gauged on a 34/64-inch choke. Production is in the Travis Peak-Cotton Valley Consolidated formation.

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Harrison County

The Oak Hill Field has seen the E. C. Johnston Well No.01 completed by NFR Energy, LLC. This well is located 2.30 miles southeast from Longview with a depth of 12,300-feet. When gauged on a 30/64-inch choke, the well potentialed 575,000 cubic feet of gas. Production is in the Cotton Valley formation.

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NFR Energy, LLC has also completed the Winston Heirs GU Well No.02 in the Waskom Field. This well is located eight miles northwest from Waskom with a depth of 11,337-feet and potentialed 834,000 cubic feet of gas when gauged on a 23/64-inch choke. Production is in the Cotton Valley formation.

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Forest Oil Corp. has completed the Charlie Bell Gas Unit No.2 Well No.1H in the Carthage, North Field. This well is located four miles southeast from Marshall with a depth of 14,832-feet. This well was gauged ona 24/64-inch choke and potentialed 1.431 million cubic feet of gas. Production is in the Bossier Shale formation.

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The Abney, C.M. "B" Well No.22-H is located 2.1 miles southwest of Waskom in the Waskom Field. Devon Energy Production Company, LP has completed this well to a depth of 15,214- feet. When gauged on an adjustable choke, the well potentialed 1.684 million cubic feet of gas. Production is in the Haynesville formation.

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Howell O & G has completed the L.D. Brown Well No.5-A and the L.D. Brown Well No.6A in the Gooch Field. The No.5-A bottoms at 7,500-feet six miles east of Harleton. When gauged on a 10/64-inch choke, the well potentialed 225,000 cubic feet of gas. The No.6A bottoms at 8,500-feet 10.1 miles northwest of Marshall. When gauged on a 10/64- inch choke, the well potentialed 310,000 cubic feet of gas. Production is in the Gant formation.

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The Cox "H" Well No.1H is located 3.7 miles south from Marshall in the Carthage, North Field. Comstock Oil & Gas, LP has completed this well to a depth of 15,424-feet. This well potentialed 8.344 million cubic fetet of gas when gauged on a 26/64-inch choke. Production is in the Bossier Shale formation.

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Marion County

The Blackstone Well No.1 is located three miles north from Karnack in the Carthage, North Field. Forest Oil Corp. has completed this well to a depth of 11,020-feet. When gauged on a 18/64-inch choke, the well potentialed 102,000 cubic feet of gas. Production is in the Bossier Shale formation.

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Panola County

When gauged on an adjustable choke, the Holmes, Priestly Gas Unit Well No.20 potentialed 968,000 cubic feet of gas. This well was completed by Anadarko E&P Company LP six miles southeast from Carthage with a depth of 9,400-feet. Production is in the Cotton Valley formation.