1 According to IHS Inc., Energy Corp. of America has tested an Eagle Ford well in a part of Frio County (RRC Dist. 1), Texas, that has had little previous horizontal drilling. The Sugar Land, Texas-based company's #2 Williamson was tested flowing 12 bbl. of 42-degree-gravity crude, 1.5 million cu. ft. of gas and 800 bbl. of water. The new producer is in Section 1, J. Poitevent Survey, A-556, and was drilled to 6,000 ft., 2,931 ft. true vertical. Production comes from fracture-treated perforations at 3,364-5,917 ft. The venture is a workover of a vertical test drilled by the operator in late 2010: the 3,200-ft. venture was tested in Eagle Ford at 3,074-76 ft., with no other details available.

2 An Eagleville Field-Eagle Ford shale horizontal completion was reported by Hunt Oil Co. in Wilson County (RRC Dist. 1), Texas. The Dallas-based company's #1H Niestroy flowed 257 bbl. of 34-degree-gravity oil, 257,000 cu. ft. of gas and 996 bbl. of water per day from fracture-stimulated perforations at 9,992-13,952 ft. Tested on a 16/64-in. choke, the flowing tubing pressure was 390 psi. The well was drilled to 14,152 ft., 8,808 ft. true vertical, in Luis Menchacha Survey, A-18. About one mile northwest, Hunt plans to drill #1H Keller and #2H Keller from offsetting surface locations in the same survey. The horizontal tests are each expected to reach 18,000 ft.

3 A new Cotton Valley discovery was reported by Calgary-based Encana Oil & Gas (USA) Inc. in Robertson County (RRC Dist. 5), Texas. The #1 Viola Sims Unit flowed 11.3 million cu. ft. of gas and 816 bbl. of water per day through a fracture-treated Cotton Valley zone at 14,946-16,634 ft. The directional discovery was drilled to 16,831 ft., 16,562 ft. true vertical, on a 207-acre lease in Francisco Ruiz Survey, A-41. Encana's new well is the deepest producer in this part of Robertson County. Site log tops include Austin Chalk, 5,494 ft.; Bexar shale, 9,077 ft.; and Travis Peak, 9,692 ft.

4 In southern Leon County (RRC Dist. 5), Texas, Encana Oil & Gas (USA)'s horizontal Woodbine well flowed 164 bbl. of 33.2-degree-gravity crude and 2,890 bbl. of water on test. Calgary-based Encana's #1H Gresham Trust was drilled to 12,850 ft., 6,684 ft. true vertical, in James M. Hallmark Survey, A-339. The well was tested through perforations at 6,686-12,075 ft. Gauged on a 24/64-in. choke, the flowing casing pressure was 1,000 psi. Offsetting Encana's Woodbine venture is its #3 Gresham Trust, a Cotton Valley well brought online in June 2010.

5 A Wilcox discovery by Houston-based Gordy Oil Co. was reported in Montgomery County (RRC Dist. 3), Texas. The #1 Joy Partners et al was tested flowing 1.42 million cu. ft. of gas, 36.5 bbl. of 49.8-degree-gravity condensate and 169 bbl. of water per day. The directional well was drilled to 10,893 ft., 10,730 ft. true vertical, on a 453-acre lease in William S. Taylor Survey, A-552. The well produced from fracture-treated perforations at 10,410-52 ft. and was tested on a 12/64-in. choke with a flowing tubing pressure of 2,721 psi and a shut-in tubing pressure of 3,865 psi. There is no nearby Wilcox recovery.

6 Tri-C Resources of Houston completed a Lower Hackberry discovery in Jefferson County (RRC Dist. 3), Texas. The directional wildcat, #1ST McFaddin Heirs A, flowed 2.49 million cu. ft. of gas and 144 bbl. of 46.2-degree-gravity oil per day from natural perforations as 11,872-78 ft. Tested on an 8/64-in. choke, the flowing tubing pressure was 7,820 and the shut-in tubing pressure was 8,155 psi. Drilled to 12,800 ft. in a sidetracked hole from a surface location in Patrick B. O'Conner Survey, A-185, the true vertical depth is 12,545 ft. The new producer directly offsets #1-A Mc-Faddin, which was drilled to 19,700 ft. in Wilcox and abandoned in 1993 by operator

Enron Corp.

7 IHS Inc. reported that

Chevron has drilled a 28,000-ft. appraisal test on Keathley Canyon Block 785. Houston-based Chevron's #1 OCS G25806 is on Block 785. The Buckskin discovery (#1 BP OCS G25823) is on nearby Keathley Canyon Block 872 and hit more than 300 ft. of net pay. The Lower Tertiary discovery was drilled to 29,404 ft. in 6,600 ft. of water. Other nearby discoveries include the Moccasin discovery (#31 OCS G22367) on Keathley Canyon Block 736 and Anadarko's Lucius oil find on Keathley Canyon Block 875. Also, Statoil recently received approval to drill on its Bloko prospect on Block 698 at #1 OCS G33343. Chevron is based in Houston.

8 According to IHS Inc., Anadarko Petroleum Corp. has scheduled an ultra-deepwater exploratory test on the company's Spartacus prospect. The #1SS OCS G33982 is in the southeastern portion of Walker Ridge Block 793 in water depth of 7,000 ft. According to the 2011-approved exploration plan, two more tests could be drilled on the tract. The Spartacus prospect is near a cluster of discoveries made in the neighboring Keathley Canyon area, including the company's Lucius oil find on Keathley Canyon Block 875. Anadarko owns 66.67% of the lease and partner Mariner Energy owns 33.33%. Anadarko's headquarters are in The Woodlands, Texas.

9 Houston-based Walter Oil & Gas Corp. has scheduled an exploratory test in Eugene Island Block 290, offshore Louisana. The #1 OCS G31376 will be drilled on the far northern portion of the block. In 2008, Walter scheduled a wildcat for roughly the same surface location as its new location, but plans for the earlier wildcat were later abandoned. The tract's initial plan was filed by Walter in early 2008. Water in the area is 205 ft. The company acquired the drilling rights to Block 290 in October 2007.

10 Devon Energy Corp. completed a Tuscaloosa Marine shale discovery in the Beech Grove Plantation Field area of Section 68-2s-2e, East Feliciana Parish, La. The #1 Beech Grove Land Co 68H flowed 120 bbl. of 42-degree-gravity oil, 100,000 cu. ft. of gas and 312 bbl. of water per day. The horizontal well was drilled to 17,153 ft., 13,737 ft. true vertical and produced from perforations at 14,275-17,013 ft. Gauged on a 30/64-in. choke the flowing tubing pressure was 950 psi. About six miles north, the Oklahoma City-based operator has also staked #1 Richland Farms Inc. 74H, targeting Tuscaloosa Marine shale.

11 Cobalt International Energy Inc. started drilling an exploratory test on its Ligurian prospect about six miles northwest of Anadarko Petro - leum's Heidelberg appraisal drilling program. The #1 OCS G32534 is being drilled from a site in the central portion of Green Canyon Block 814, where water depth is 5,800 ft. The Houston-based company's Ligurian prospect also includes Block 813 (OCS G32533) and Block 858 (OCS G32536) According to the company's exploration plan, Cobalt could drill as many as 10 tests on the three-block prospect. Cobalt has drilled one previous test on the prospect, #1 (BP) OCS G32536, on Block 858, but no details are available.

12 A Smith County, Miss., exploratory test is planned by Jackson, Miss.-based Tellus Operating Group. The 17,500-ft. #1 USA 6-7 will be drilled in Section 6-3n-7e and targets Norphlet. Offsetting the well to the west is American Petrofina's #1-6 USA, drilled in 1960 to 12,720 ft. in Hosston. At that site, Hosston cores at 10,729-78 ft. had oil shows. Boykin Church Field is about two miles southeast. Since 1958, reservoir output has reached 1.3 million bbl. of crude and condensate, 1.8 billion cu. ft. of gas and 2.2 million bbl. of water from numerous Paluxy wells at 9,662-10,783 ft. and several Rodessa wells at 10,714-11,820 ft.

All data in the Exploration Highlights section is based on sources believed to be reliable, but its accuracy cannot be guaranteed. The prudent investor intending to act upon any particular data is urged to verify it with all other available sources. In no way should the publication of these items be construed as an express or implied endorsement of a company or its activities.

Most land in the U.S. is divided into townships—rectangular tracts six miles square. The township, in turn, is divided into 36 numbered sections, each a one-mile square. The lines running north-south and dividing east from west are called range lines. The lines running east-west and dividing north from south are township lines.

A well in Section 15-Township 4 north-Range 3 east is abbreviated: 15-4n-3e.