Moving east in the Haynesville Shale and east Texas and northwest Louisiana as Larry mentioned we added 50,000 net acres in the third quarter and expect to add an additional 50,000 net acres in the fourth quarter. This will bring our total Haynesville shale position to 580,000 net acres. During the third quarter, we initiated drilling on our first two horizontal wells in the Haynesville Shale. These 100% working interest hole 103-H located in Panola County, Texas has reached total vertical depth and is now drilling the lateral section. We plan to begin completion operations next week.

Our second Haynesville Shale horizontal well the 100% owned McSwain 7H located in Shelby County, Texas is also at drilling. We expect to have these results from both these wells in our year end call. Our focus in the Haynesville Shale throughout the reminder of 2008 and 2009 will be to better characterize our acreage through additional drilling, coring and testing in order to define the areas of the play, where we believe we can achieve consistent, repeatable results just as we did in the Barnett Shale.

We planned to drill two additional horizontal wells in the Haynesville Shale during the fourth quarter with two dedicated rigs running. One of the great things about our acreage position in east Texas and Western Louisiana is the stack pay zones. An example of this is that our Stockman Field in the Carthage area. Not only does this field have Haynesville Shale potential, but it also has deeper potential in the Haynesville line.

During the quarter we completed three outstanding 100% Devon vertical wells in the Haynesville Lime. The Oliver-4IP to of 26 million cubic feet a day, the case three at 22 million a day and the Jenkins-1 at 10 million a day. These wells only cost about $5.5 million on average to drilling complete making them very economic. We initiated a 3D seismic shoot over the filed during the third quarter and plan to drill six additional wells in the fourth quarter with our first quarter horizontal well planned for the first quarter of 2009 in the Lime.

Its early in the development of Haynesville Lime in addition of work needs to be done including determining what the optimal spacing should be, but with more than 24,000 net acres in the Stockman Field alone, we believe we have a meaningful inventory of future locations and we will keep you updated.


Buck