Haynesville Shale

We entered the Haynesville Shale natural gas play in late 2009. Our position is located in the heart of the play, with nearby wells demonstrating strong initial rates of production ranging between 16 and 20 million cubic feet per day. Our existing undeveloped assets in this play give us the ability to rapidly increase production and reserves while achieving our strategic goal of balancing our production stream between oil and natural gas.

• Approximately 17% of our year-end 2010 proved reserves were attributable to our Haynesville Shale property, located in Bossier Parish, Louisiana. 
• Initial production from the George R. Mills Well No. 1H, our first well completed since acquiring this property in 2009, commenced in September 2010.
• By December 31, 2010, the well had produced 1.1 billion cubic feet of natural gas and was producing at a restricted rate of 6.5 MMcfe per day.
• We have six additional drilling locations on the 623 acre unit, in which we have a 69% working interest.  We are awaiting improvement in natural gas prices before resuming development of the field.