EXCERPT:

Bethany-Longstreet Field, Caddo and DeSoto Parishes, Louisiana. In the Bethany Longstreet field, the Company conducted drilling operations on nine gross Haynesville Shale horizontal wells during the quarter. In addition, the Company conducted completion operations on seven gross and added a total of three gross (1.2 net) wells to production during the quarter.

The Company has completed its initial operated well in the field, the Goodrich Petroleum Company - Plants 26 H-1 (36% WI), at a 24-hour peak rate of 15,300 Mcfe per day on a 22/64 inch choke with 7,000 psi. The Company is currently in completion phase on its second well operated in the field, the Garland 25 H-1 (37% WI), and drilling its third operated well, the Fallon 18 H-1 (57% WI).

The Company has also participated in the completion of three Chesapeake operated wells in the field. The Hunsicker 13 H-1 (50% WI) was completed at a 24-hour peak rate of 14,300 Mcfe per day on a 20/64 inch choke with 7,900 psi. The Bray 34 H-1 (21% WI) was completed at a 24-hour peak rate of 15,400 Mcfe per day on a 22/64 inch choke with 7,400 psi, and the Caddo Parish 30 H-1 (25% WI) was completed at a 24-hour peak rate of 12,950 Mcfe per day on a 22/64 inch choke with 7,200 psi.

To date, the Company has completed and added to production a total of fourteen gross Haynesville horizontal wells in the Bethany Longstreet field with an average initial production rate of 14,300 Mcfe per day.

The Company is currently running two operated and two non-operated rigs in Northwest Louisiana.

Texas

Beckville and Minden Fields, Panola and Rusk Counties, Texas. During the quarter, the Company conducted drilling operations on and completed two horizontal wells in the field, both of which have previously been announced (T. Swiley 4H and Beard Taylor 1H). The Company has completed the drilling of its Billy Harris 1H, a horizontal Haynesville Shale well with a lateral of 5,200 feet, and anticipates completing the well, along with two previously deferred Cotton Valley Taylor sand horizontals in the fourth quarter.