EAST TEXAS DRILLING REPORT

DEVELOPMENTAL

Harrison County

The J. O. Brown Trust Well No.1 will be drilled by Chalker Operating Inc. This well will be located 3.5 miles southeast from Marshall in the Meredith Smith (Travis Peak) Field. This well will bottom at 10,000 feet in the Rogers, B Survey, A-20.

Berry Oil Co. will drill the Meek Haynes Unit Well No.9 A to a depth of 10,400 feet in the Darco, Southeast (Cotton Valley) Field. This well will be located 10.1 miles south from Marshall in the Carrol, E Survey, A-135. The well may also be drilled in the Blocker

Rodessa) Field, the Blocker

Page) Field, a Wildcat Field or the Blocker (Travis Peak) Field.

In a lease 2.5 miles southeast from Woodlawn, in the Woodlawn (Cotton Valley) Field, the Slaughter Gas Unit “B” Well No.4H will be drilled. BP America Production Co. will drill this well to a depth of 13,500 feet in the Watkins, L Survey, A-750.

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Nacogdoches County

EOG Resources, Inc. will drillthe Compton Well No.1 in the Martinsville (Travis Peak) Field. The well will bottom at 11,400 feet in the Walling, J Survey, A-597 8.3 miles northeast from Nacogdoches.

Samson Lone Star, LLC will drill the Cindy Sue GU 1 Well No.8 and the H.G.T. Middlebrook GU 1 Well No.12 in the Douglass, West (Travis Peak) Field. The No.8 well will be located 9.5 miles northwest from Nacogdoches with a depth of 12,000 feet in the De Los Santos Coy, M & Bros. Survey, A-21. This well may also be drilled in the Little Ears (Pettit Lime) Field, the Nacogdoches, East (James Lime) Field or the Miyagi

Pettit) Field. The No.12 will be located 9.5 miles northwest from Nacogdoches in the De Los Santos Coy, M & Bros. Survey, A-21. This well may also be drilled in the Miyagi

Pettit) Field, the Nacogdoches, East (James Lime) Field, a Wildcat Field or the Little Ears (Pettit Lime) Field.

+++ Panola County

The Raley Well No.3 will be drilled 11.2 miles southwest from Carthage by Patara Oil & Gas LLC. The well will bottom at 10,250 feet in the Carthage (Cotton Valley) Field and will lie in the Williams, J W Survey, A-744. The well may also be drilled in the Beckville (Travis Peak) Field, a Wildcat Field, the Carthage (Pettit, Lower) Field, the J.G.S. (Rodessa Gloyd) Field, the Fairplay, Northeast (Travis Peak) Field or the Carthage (Rodessa) Field.

XTO Energy Inc. will drill the Vera Black Well No.10H to a depth of 17,100 feet in the Carthage, North (Bossier Shale) Field. This well will be located 12 miles north from Carthage in the Hammer, L T Survey, A-335.

In a lease 3.7 miles east from Carthage, in the Carthage (Cotton Valley) Field, the Hull Unit A Well No.A104 will be drilled by Devon Energy Production Company, L.P. This well will bottom at 11,000 feet in the Mallory, G W Survey, A-455 and may also be drilled in a Wildcat Field.

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Panola County

The Raley Well No.3 will be drilled 11.2 miles southwest from Carthage by Patara Oil & Gas LLC. The well will bottom at 10,250 feet in the Carthage (Cotton Valley) Field and will lie in the Williams, J W Survey, A-744. The well may also be drilled in the Beckville (Travis Peak) Field, a Wildcat Field, the Carthage (Pettit, Lower) Field, the J.G.S. (Rodessa Gloyd) Field, the Fairplay, Northeast (Travis Peak) Field or the Carthage (Rodessa) Field.

XTO Energy Inc. will drill the Vera Black Well No.10H to a depth of 17,100 feet in the Carthage, North (Bossier Shale) Field. This well will be located 12 miles north from Carthage in the Hammer, L T Survey, A-335.

In a lease 3.7 miles east from Carthage, in the Carthage (Cotton Valley) Field, the Hull Unit A Well No.A104 will be drilled by Devon Energy Production Company, L.P. This well will bottom at 11,000 feet in the Mallory, G W Survey, A-455 and may also be drilled in a Wildcat Field.

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COMPLETIONS

Cass County

Cass Energy LLC has completed the Whela-Bivins SWD Well No.2 in the Haynes Field. This well is located 14.5 miles south from Atlanta with a depth of 2,780 feet. No test data recorded. Production is in the Mitchell formation.

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Freestone County

The Turner “A” Well No.10 has been completed 3.5 miles southwest of Dew in the Dew Field by Anadarko Petroleum Corp. This well bottoms at 15,220 feet and potentialed 864,000 cubic feet of gas when gauged on a 48/64-inch choke. Production is in the Cotton Valley Consolidated formation.

XTO Energy Inc. has completed the Gilliam “C” No.2 Gas Unit Well No.30 to a depth of 12,058 feet. This well is located 8.2 miles south of Donie in the Freestone Field. When gauged on a 48/64-inch choke, the well potentialed 1.668 million cubic feet of gas. Production is in the Cotton Valley-Bossier Consolidated formation.

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Harrison County

The Gant Estate Well No.03 will is located five miles southeast from Harleton in the Carthage, North Field. This well was completed by NFR Energy, LLC to a depth of 11,650 feet and potentialed 290,000 cubic feet of gas when gauged on a 25/64-inch choke. Production is in the Bossier Shale formation.

Ark-La-Tex Energy Partners, LLC has completed the Anita Bookout Well No.1 in the Waskom Field. This well is located four miles north of Waskom with a depth of 9,654 feet. This well flowed with three barrels of crude when gauged on a 48/64-inch choke. Production is in the Dana Sand formation.

In a lease 9.1 miles northeast of Marshall, in the Woodlawn Field, the Alvin Beckham Well No.1A has been drilled by Howell Oil & Gas, Inc. This well bottoms at 7,050 feet and potentialed 81,000 cubic feet of gas when gauged on a 46/64-inch choke. Production is in the Travis Peak formation.

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Panola County

The C. Brooks Well No.9 is located 13 miles northwest from Carthage with a depth of 10,280 feet. Patara Oil & Gas, LLC has completed this well in the Carthage Field. When gauged on a 20/64-inch choke, the well potentialed 1.148 million cubic feet of gas. Production is in the Cotton Valley formation.

When gauged on a 22/64- inch choke, the Dobbins GU Well No.2 potentialed 1.202 million cubic feet of gas. Patara Oil & Gas has completed this well 12.4 miles northwest from Carthage to a depth of 10,361-feet in the Carthage Field. Production is in the Cotton Valley formation.

Anadarko E & P Company LP has completed the CGU 8 Well No.14 in the Carthage Field. This well is located 4.4 miles southwest from Carthage with a depth of 9,587 feet. When gauged on an adjustable choke, the well potentialed 1.115 million cubic feet of gas. Production is in the Cotton Valley formation.

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Rusk County

The Sheppard, Bailey Etal Well No.29 and the Sheppard, Bailey Etal Well No.33 have been completed in the Oak Hill Field by Anadarko E & P Company LP. The No.29 is located 22.1 miles northeast from Henderson with a depth of 10,619 feet. This well potentialed 863,000 cubic feet of gas when gauged on an adjustable choke. The No.33 is located 22.7 miles northeast of Henderson with a depth of 10,561-feet. This well potentialed 475,000 cubic feet of gas when gauged on an adjustable choke. Production is in the Cotton Valley formation.

When gauged on a 27/64- inch choke, the Jarrelll Gas Unit Well No.5 potentialed 1.671 million cubic feet of gas. Fidelity Exploration & Production Co. has completed this well to a depth of 10,910 feet 3.08 miles northwest from Minden in the Brachfield, Southeast Field. Production is in the Cotton Valley formation.