The Gulf Coast Region comprises approximately 5% of our estimated proved reserves as of December 31, 2008. In the Gulf Coast Region, our primary areas of operation are the Newton and Midway Loop Fields.

Development Projects – Newton, Midway Loop and Opossum Hollow Fields

Newton Field.
The Newton Field is located in Newton County, Texas where we have an interest in 21,000 net acres with a 92% working interest. The wells in the Newton Field produce from 13 different sands in the Wilcox formation. The field is a large structural anticline that is defined by extensive well and seismic control. At year end, proved reserves in the Newton Field were 11.6 Bcfe. We do not have any drilling capital planned for the Newton Field in 2009.

Midway Loop Field.
The Midway Loop Field is located in Polk and Tyler Counties, Texas. We have an interest in 21,400 gross acres, with an average 28% working interest. The wells in this field produce from the Austin Chalk and are drilled horizontally with either dual or single laterals that reach up to 8,000 feet of displacement in each lateral. As of December 31, 2008 our proved reserves totaled 16.2 Bcfe. There is no drilling capital budget for the field in 2009.

Caballos Creek / Opossum Hollow / 74 Ranch Areas.
The leashold is located in Atascosa and McMullen Counties, Texas. We have an interest in approximately 20,000 acres. The area has additional potential in the Wilcox sands, Eagleford shales, Sligo formation and Cotton Valley sands that are supported by acquired 3-D seismic programs.

Haynesville Shale.
We acquired rights to 16,000 gross acres in the Haynesville Shale during the second and third quarters of 2008. The acreage position is concentrated in Caddo Parish, Louisiana, and Harrison, Shelby and Nacogdoches counties, Texas, which are considered to be highly attractive regions in the play. The costs to acquire the leasehold rights have averaged approximately $3,500 per acre. We are in the process of seeking a joint venture partner to begin drilling our leasehold.