Oil & Gas Report

January 12, 2003

Intentions to Drill

HEMPHILL (WILDCAT & BUFFALO WALLOW Granite Wash) Chevron U.S.A., Inc., #3 Melvin Helton, 467' from South & East line, Sec. 21,M-1,H&GN, PD 12500'.

HEMPHILL (WILDCAT & BUFFALO WALLOW Granite Wash) Dominion Oklahoma Texas E&P, Inc., #11 Meek '67', 2050' from North & 2550' from West line, Sec. 67,M-1,H&GN, PD 12125'.

HEMPHILL (WILDCAT & N.W. CANADIAN Douglas) Bracken Operating, L.L.C., #1-91 Nix 'A', 1800' from South & 660' from East line, Sec. 91,42,H&TC, PD 7000'.

HEMPHILL (WILDCAT 7 S.E. CANADIAN Douglas) BP America Production Co., #2085 Hoover, 1900' from South & 2250' from East line, Sec. 85,41,H&TC, PD 8050'.

HEMPHILL (WILDCAT & S.E. CANADIAN Douglas) BP America Production Co., Hoover '52', Sec. 52,41,H&TC, PD 8150', for the following wells:

#3, 660' from South & West line of Sec.

#4, 1200' from North & 900' from West line of Sec.

HEMPHILL (WILDCAT & S.E. CANADIAN Douglas) Mewbourne Oil Co., #2 Jones Trust '21', 900' from South & 1980' from East line, Sec. 21,1,G&M, PD 8200'. (This same well was filed last week with a different location)

HEMPHILL (WILDCAT & HEMPHILL Douglas) BP America Production Co., #2023 Ramp, et al, 2095' from North & 2226' from East line, Sec. 23,41,H&TC, PD 8200'.

HEMPHILL (WILDCAT & HEMPHILL Douglas) BP America Production Co., #8150 Shell Fee, 1690' from South & 936' from East line, Sec. 53,41,H&TC, PD 8150'.

Gas Well Completions

HEMPHILL (BUFFALO WALLOW Granite Wash) Bravo Natural Resources, Inc., #2041 Hefley, Sec. 41,M-1,H&GN, spud 9-19-02, drlg. compl 10-5-02, tested 11-27-02, potential 2099 MCF, TD 11710', PBTD 11625' -

HEMPHILL (BUFFALO WALLOW Granite Wash) Bravo Natural Resources, Inc., #2 Meek '70', Sec. 41,M-1,H&GN, spud 8-26-02, drlg. compl 9-17-02, tested 11-12-02, potential 2670 MCF, TD 11725', PBTD 11680' -

HEMPHILL (CANADIAN Douglas) Questar E&P Co., #5038 Humphreys, Sec. 38,1,G&M, spud 9-29-02, drlg. compl 10-29-02, tested 11-7-02, potential 8982 MCF, TD 7400', PBTD 7301' -

HUTCHINSON (WEST PANHANDLE) J.M. Huber Corp., #202 Herring, Wm. Cole Survey, spud 8-27-02, drlg. compl 9-8-02, tested 10-7-02, TD 3288', PBT D 3234' - Horizontal Side-track

Plugged Wells

GRAY (PANHANDLE) Bradley Operating Co., Inc., #36-W Morse Waterflood Project, Sec. 2,26,H&GN, spud unknown, plugged 11-26-02, TD 2800' (oil) -