East Texas

Crimson is currently finalizing the completion of the Grizzly well (55% WI) in its Bruin Prospect Area in San Augustine County, Texas. The Grizzly is the first Crimson-operated well in the Bruin Prospect and has a surface location approximately 2.5 miles south of the Kardell (52% WI) well drilled in 2009. The Grizzly was drilled to a total measured depth of 18,100 feet, which includes a lateral of approximately 4,200 feet in the Mid Bossier Shale. The well was completed with 14 frac stages. Crimson was able to drill and case the Grizzly in 60 days, an improvement of 30 days compared to the Kardell. Flowback operations have commenced, and consistent with our strategy to maximize the ultimate recovery, we are methodically increasing the choke size, and monitoring pressure and rate at each step. We are very encouraged with the pressure and rate response and expect to have the well tested and flowing at a sustained rate in approximately two weeks, at which time the results will be reported. Production during the testing phase is being flowed into the sales line.

The Gobi (73% WI), the Company's second operated well in the Bruin Prospect Area, has reached a total vertical depth of approximately 13,900 feet in the pilot hole with drilling of the 4,500 foot lateral in the Mid-Bossier Shale expected to commence soon. Gobi is located approximately 2 miles northwest of the Grizzly. Initial completion of the Gobi is scheduled to begin in October, with results expected to be announced in November.

Crimson now has three logged pilot holes in the Bruin Prospect area and is extremely encouraged by the results from those logs. The Mid Bossier Shale and Haynesville Shale appear to have gross thickness of approximately 300 and 160 feet, respectively and have rock qualities similar to those seen in the Haynesville Shale in the Louisiana Core area. The James Lime is similar in quality and thickness to that being actively developed in the County Line Field to the northwest.

Following the drilling of Gobi, the rig will be moved to the Bengal location (37.5% WI) in Crimson's Tiger Prospect Area in Sabine County, Texas which is located approximately 7 miles east of the Grizzly well. Bengal will be Crimson's third operated well in East Texas and is expected to spud in September with a proposed total measured depth of approximately 18,300 feet.

The Halbert Trust (29% WI), the first well drilled in Crimson's Fairway Farms Prospect Area, operated by Eagle Oil & Gas Co., has reached a total measured depth of 17,800 feet, which includes a lateral of approximately 4,000 feet and will be completed in the Mid-Bossier Shale. This well is located approximately 3 miles to the east of the Grizzly well. The operator has informed us that completion operations will commence in November.

The operator plans to move back to Fairway Farms in September 2010 to drill a second well.

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