The Gulf Coast Region comprises approximately 26% of our estimated proved reserves as of December 31, 2009. 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 2,070 net acres with a 46% 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 16.2 Bcfe. We do not currently anticipate allocating any significant drilling capital for the Newton Field in 2010.

Midway Loop Field.
The Midway Loop Field is located in Polk and Tyler Counties, Texas. We have an interest in 12,674 gross acres, with an average 18% 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 displaced in each lateral. As of December 31, 2009 our proved reserves totaled 12.2 Bcfe. Currently, there is no drilling capital anticipated for the field in 2010.