Ky/Tenn Report

Volume 15, Number 8 AUGUST 2008

CNX HOSTING FALL TOGA MEETING SEPT 18TH -CNX is sponsoring the Thursday, September 18th TOGA Board of Directors meeting, at the Oak Ridge Country Club. Directors will discuss recent enacted drilling regs, as well as the upcoming Christmas Party and 2009 convention. All members and guests are welcome.

OIL & GAS BOARD TO MEET AUGUST 26TH - The Tennessee Oil & Gas Board will meet at 9:00 a.m., Tuesday, August 26th in the 17th floor conference room in the L&C Tower, 401 Church, Nashville. The two items on the agenda include a review of a contested case of Walden Resources. The company was fined $50,000 for drilling deeper that the permit allowed and for not employing proper safety measures on the R.D. Parten #5. This is the well that blew out and burned the rig in Anderson County in March 2008. Also on the agenda is a contested case of East Tennessee Consultants (ETC) accused of violating the time limit to plug wells. ETC and its associated firms have been fined $109,000 for violating the regulations. ETC is contesting the fine.

LANDMAN AVAILABLE - Knoxville attorney and broker. Formerly with Chevron, California Company and Tenneco. Former House Counsel for East Tennessee Natural Gas Co. Currently specializing in site locations and acquisitions. Contact Frank Barnett 865-212-0123.

PLATTS APPALACHIAN GAS CONFERENCE, OCT. 29-30TH -Tennessee operators may want to consider attending the Platts Appalachian Gas Conference, scheduled for October 29-30th in Pittsburg, Pa. The two day event focuses on reserves, production activity, pipeline access, prices and more. TOGA is one of several co-sponsors of the event. Go to www.Platts.com. for more info.

WILD WELL TRAINING AVAILABLE - According to the state, effective immediately, all tool pushers and drillers are required to complete an IADC well control training school. Nearly 100 drillers and tool pushers have completed the TOGA sponsored training program, taught by Wild Well Control. More class will be scheduled as needed. Call Teresa at the TOGA office, 615-371-6137 to reserve a spot in the next session. When we have enough students, a training session will be scheduled.

CNX REPORTS CHATTANOOGA SHALE SUCCESS-While reporting record earnings for CNX Gas Corporation, CEO Nicholas DeIuliis, said, "We also drilled four additional Chattanooga Shale wells (in Tennessee) after our successful test well. Wells are producing 450-460 Mcf per day. Two additional wells are in various stages of completion but initial results are encouraging. We are consolidating our acreage position in the C Shale to 235,000 net acres by adding just over 100,000 net acres. CNX Gas now has acreage position as well as first-mover advantage in the Chattanooga Shale. We don't relish either as we continue drilling in this unfolding shale play."

NEW MACHINE SHOP IN LANSING LOOKING FOR OIL FIELD WORK- Melvin Howard, owner of Production Tool & Die, Inc., in Lansing, TN, called recently to let us know that he is operating a full service, high-tech machine shop in Lansing and is looking for oil field work. "We can repair equipment or even build it," he promises. Contact him by email at : info@production toolanddie.com or call at 423-346-3174. The shop is located just outside Lansing at 194 Melvin Howard Rd.

LAND TO LEASE - There is a 100+ acre tract located in Roane County that is available for lease. Owner sees thin shinny film of oil floating on places where water comes from springs on several sites on property. Contact D.T. Glandon at 865-717-8633. Bobby Cherry has about 1700 acres near Red Boiling Springs. There is no production now, but one gas well was drilled that supposedly threw the drill stem out of the hole. Call Cherry at 931-621-3388 or 931-621-7135. Phil Cross owns 33 acres in one tract in Overton & Pickett Counties. Oil production nearby but his property has never been drilled. Contact Cross at 931-823-3707 or 931-397-7703 or email jpcross@twlakes.net.

FORMER BUSINESS OWNER - interested in working in oil business. She now lives in Williamson County and had extensive experience as executive assistant to a oil and gas lawyer in Tulsa, before starting, running then selling own business here.. Contact TOGA office for resume.

NEW CASING, TUBING SOURCE-Spartan Steel, specializing in API Prime OCTG, in grades J-55, N-80, P110, HC P-110, casing and Tubing in ERW and Seamless. Spartan Steel is a major distributor of prime and secondary steel pipe with inventory in stock ands arriving on a regular basis. Call Mike today to discuss your OCTG needs. Phone 303-670-9048

TENNESSEE LOOKS GOOD IN OIL POTENTIAL MAP-According to Untapped Resources map in the July 14, 2008 issue of Newsweek, there is excellent potential for oil production over a large portion of middle and eastern Tennessee. The magazine asks (True or False?), "The United States Doesn't Have Any Oil." Then answers False, citing a map of the United States that show how much crude oil experts believe-but have not proven-the regions could contain. Predictions for all of Middle Tennessee and Upper East Tennessee show predictions from a low of 4 thousand barrels per square mile to as much as 10,242 barrels per square mile.

TENNESSEE JULY PERMITS: Anderson County - Knox Energy, The Coal Creek Co., C4-2001, 3425', Clinton, Atlas America, The Coal Creek Mining & Mfg., CCLC-76, 4290', CCLC-7_, 4065', Lake City / Campbell County - Atlas America, Coal Creek Mining & Mfg. CCLC6_, 3185', CCLC-67, 3175', Jacksboro, / Delta Producers, Inc., Lindsay Land Co. #22, 3000', #21, 4465', Jacksboro / Morgan County - Vinland Energy, Lewis Carson #1, 3350', #2, 3350', Mable Wilson #7, 3100', Petros / Overton County - Able Oil Company, Barry Johnson, #1, 2000', Alpine, DWG, LLC, Iwron Hunter #2, 2000', Koger Energy Partners, Grady Gray #3, 2000', Livingston / Pickett County - Young Oil Corp., Johnny Cummings & David Dow #2, 2000', #1, 2000', #3, 2000', Byrdstorm / Scott County - Orea Energy Group LLC, Todd Heirs #8, 2000', Robbins

KENTUCKY JULY PERMITS: Bell County - Forexco, Inc., LMD Enterprises, LLC, #4, Devonian, LP / Clinton County - Kenneth Conner, Robert Reneau, #2, E B Conner Jr., Kenneth Conner, #1, Rick Rod Oil Company, Inc., Ferguson Brothers Inc., #2F, #4QJ, Explo Oil, Inc., Harold Littrell, #2-J, Watson, Groce, Joseph E Wray, #2, Kenneth Conner, Carvin Hadley, #2, Knox Gp, / Cumberland County - Searock KY, Inc., T Secula, #1, #2, E Secula, #1, #2, Grandville, Papineau Drilling, Inc., Nick Cooley, #1, Knox Gp, STL Energy, Jay Shell Cochran, #2, #3, #4, #5, #6, #7, #8, Ronald Parrott, Travis Dudney ER AL, #1, Global Exploration LLC, Hershell Wayne Flowers, #5, Koger Energy Partners, LLC, Elizabeth/Stockton, Aaron & Judy Stockton, #1, Knox Gp, Searock KY, Inc., Chad Smith ET AL, #1, #2, Raymond Radford ET AL, Unit 1, Unit 2, #3, Granville / Harlan County - Daugherty Pet, Inc., KRCC Oil & Gas, LLC/Equitable Production Company, #DPI 1245, Devonian, LP, Vinland Energy Operations, LLC, Nytis Exploration Co., Boyett, Crump, #NADD 12A / Knox County - Mountain Energy Exploration, LLC, Doug Bingham, #1, Corniferous, Vinland Energy Operations, LLC, William Hammons, ET AL, #9, Carley & Odie Bennett, ET AL, #2, Enpro, Inc., #9, #12, Clinton Sh / Leslie County - Daugherty Pet, Inc., Kentucky River Properties, LLC, #DPI 1240, Huron Mbr, Ohio Sh / Letcher County - Equitable Production Company, Equitable Production Company, #568508, #568562, #568076, #568074, #566046, Huron Mbr, Ohio Sh, #568563, #568482, #568509, #568075, #568073, #567799, Cleveland Mbr, Ohio Sh, Quality Natural Gas, LLC, Robert G Caudill ET AL, #1826, Clean Gas, Inc., Lloyd Day Heirs, #345, Equitable Production Company, LLC, #300, Devonian, LP /- Whitley County- Energy Associates, Inc., Princeton, ET AL, #GWS4, Vinland Energy Operations, LLC, Marjorie Stout, #1, Cumberland Valley Resources, LLC, Carl Partin ET AL, #1, Clinton Sh / Jackson, Howard DBA Jackson Enterprises, Otis Croley Heirs ET AL, #66, Devonian, LP

KY/TENN REPORT
750 OLD HICKORY BLVD, #150-2
BRENTWOOD, TN 37027