Report Date: 15 July, 2008
Project: Anadarko Basin Horizontal Drilling Programme
Location: Ellis County, Oklahoma
Well: Brearley 1H-11
Spud Date: 8 June, 2008
Exoma Working Interest: 25.87% (free carried)
Operator: Crusader Energy Group LLC.
Objective: 1.5 BCF gas and 50,000 barrels of oil
Total Vertical Depth (TVD): 8,600 feet
Total Measured Depth (TMD): 13,041 feet (revised)
Current Measured Depth: 13,041 feet

Progress: The well was drilled to a Total Measured Depth of 13,041 feet on July 10th after successfully drilling the lateral in the Cleveland Sand approximately 4000 feet due north of the surface location.

The Operator is currently conditioning the hole prior to running casing. Details of the test programme to be conducted by the Operator will released when available.