Ky/Tenn Report

Volume 15, Number 2 February 2008

ATLAS AMERICA HOSTS TOGA, FEB 12TH, KNOXVILLE - The winter meeting of the Tennessee Oil & Gas Association board of directors will be held at the Oak Ridge Country Club on Tuesday, February 12, 2008. The board meeting will begin at 4 p.m., followed by cocktails and hors d'oeuvres at 6:00 p.m. Notices have been sent to all members. If you plan to attend, please fax the note back to the TOGA office at 615-599-1806 or call the TOGA office and leave a message at 615-371-6137.

CNX TENNESSEE HORIZONTALSHALE WELL IPS 3.9 MMCFPD - CNX Gas Corp has reported that its new Tennessee horizontal Chattanooga Shale well has achieved an open flow of MMcf per day. Commenting on fourth quarter and full year 2007 results, CNX President and CEO, Nicholas Deluliis said in a January 29, 2008 news release, "CNX Gas is effectively transitioning from a gas manufacturing coal bed methane company to a full-fledged exploration and production company. We saw the first fruits of this in December with our second horizontal shale well, and our first in the Chattanooga Shale in Tennessee, which achieved an open flow of 3.9 MMcf per day. This well came on the heels of a horizontal Mountaineer CBM well completed in December that has produced nearly 900 Mcf per day. Contributed acreage and invested working interests in the Bakken Shale and Trenton Black River plays with large and well-established operator partners. In order to maximize shareholder value, we need to continue to accelerate the assessment and exploration of our huge CBM, shale, and conventional acreage positions."

PAY 2008 DUES NOW - The Tennessee Oil & Gas Association Board of Directors has voted to raise dues for association for 2008. Dues for individual members will be $250 per year for individuals. Small Corporations (under 20 employees) will be $500 per year, may have 2 voting members. Large Corporations (20 or more employees) will be $1,000 per year, may have four voting members. It was also agreed that dues for new members would be pro-rated on a quarterly basis. A letter from President Wagoner and an application for the new dues structure has been mailed to all existing members. In the application many of you received, the cost for an individual was listed incorrectly at $150. It should have read $250. Please send the correct amount.

REFINERY TRUSTEE GETS OFFER FOR TRUCKS, STATIONS - It has been reported by unofficial sources that William Bishop, the trustee for Somerset Refinery, has received an offer of $2 million for the fleet of trucks and the Somerset stations. No word on other offers if the $2 million offer has been accepted.

2008 CONVENTION IN KNOXVILLE - The 2008 TOGA convention will be held May 14th- 16th at the Marriott Hotel in downtown Knoxville, Tennessee. Plans for the convention will be reviewed at the February 12th Board of Directors meeting.

YOUNG HITS IN FENTRESS COUNTY, NORRAD STILL TOPS 100 BOD - Young Oil Corp. hit an oil well in Fentress County late last year with an IP of 100 BOD. The Robert Cole #2, located about in the Little Crab community about six miles west of Jamestown, began flowing oil when drilling reached the Sunnybrook formation at less than 1,000 feet. Young also reports that the Norrod #1, Overton County, that came in at more than 1,900 BOD in March 2007 is still producing at a controlled rate of more than 100 BOD.

DAUGHERTY ELECTED TO IPPA OFFICE - Bill Daugherty, CEO, NGAS Resources, Inc. Lexington, KY., has been elected to the board of directors of the Independent Petroleum Association of America, representing Kentucky, Tennessee, North Carolina and South Carolina.,

FLUID FLOW OFFERS ANSWERS - Fluid Flow Products, Inc., is an authorized distributor for Cameron Measurement Systems, the manufacturer the Barton Chart Recorder, the Scanner series of electronic flow measurement instrumentation, the differential pressure cone meter and other related products. For more information, contact Dan Davis. Office 704-841-6821 Cell 704-905-6818 or Oil & Gas Desk 800-222-2229, Extension 6812 or Email: dandavis@fluidflow.com or sales@fluidflow.com

$100 CRUDE OIL - Crude oil prices reached $100 on January 2, 2008 for the first time as concern mounted over whether demand for oil had overtaken supply. The price of oil surged 57% last year as Middle East tensions and the rapid industrialization of India and China spurred investors. Analysts don't expect record-high crude oil prices by themselves to send the economy into recession.

TENNESSEE JANUARY PERMITS: Anderson County -Atlas America, Coal Creek Minning & Mfg Co, CC2240, 3780', CC2242, 4393, Lake City, CC2236, 4393', CC2223, 4370', Duncan Flats, Vinland Energy, The Coal Creek Co, #41, 3250', Walden Resources, R. D. Parter #6, 5000',Windrock / Hawkins County - Appalachian Energy Corp., Kenner #3, 2000', Lee Valley / Overton County - Tennessee Energy, Willie Fletcher #1, 2000', Livingston / Pickett County - American Oil & Gas Co., Roquell Chambers, #2, 2000', Byrdstown

KENTUCKY DECEMBER PERMITS: Barren County - Angel Rose Energy, LLC, Don & Dana Emberton, #AR7, Jimmy/Nelson, James & Nelson, Teresa Freeman, #AR10, Larry Morrison, #AR13, James Bragg, #8, Leipers Ls / Bell County Vinland Energy Operations, LLC, Dooley Slusher, #1, Clinton Sh / Clinton County - Crudewell Drilling, Inc., Roger Beard, #1, Knox Gp, Page, Allen, Brad Parrigin, #1, Stones River, Crudewell Drilling, Inc., Roger Beard, #2, Sumner Steinmann, #4, Knox Gp / Rick-Rod Oil Company, Inc., Ferguson Brothers, Inc, #1F, Knox Gp / Cumberland County - Propel Resources US, LLC, Calvin Humphrey, #20, Joe Todd Oil Project, Loanus Ray , #1, Sunset Energy, LLC, Cecil Hall Dyer, #2, #1, Knox Gp, US Energy Partners, Inc, Billy Amerson, #1, Koger Energy Partners, LLC, Benny Stearns, #3, Knox Gp, Jean Cheely, Burlin & Louvern, Terry Meadows, #B1, #B2, Granville, #B3, Koger Capital Investments, LP, Eston Hume, #2, Knox Gp / Knox County - Vinland Energy Operations, LLC, Wes Campbell, #1, William Hammons, ET AL, #6, #5, Clinton Sh / Leslie County - Equitable Production Co., Equitable Production Co., #566782, Huron Mbr, Ohio Sh / Letcher County - Equitable Production Co., Equitable Production Co., #562161, #569180, Huron Mbr, Ohio Sh, Kentucy River Properties, #566732, #566928,#566701, #566843, Huron Mbr, Ohio Sh, Daugherty Pet, Inc., Kentucky River Properties, LLC, DPI-1222, #DPI-1223, Devonian, LP / Pulaski County - Mammoth Resource, LLC, George Arthur, MRP-5, MRP-6, MRP-15, Geraldine Waltz, MRP-7, MRP-8, Frank, Bobby & Jerry Ikerd, MRP-16, Devonian, LP

The Ky/Tenn Report is published monthly and distributed at no cost to oil and gas operators in Tennessee and Southern Kentucky. It is owned and operated by W.D. Goodwin, Inc., The editor is Bill Goodwin, e-mail: tmdbill@aol.com it is the official publication of the Tennessee Oil & Gas Association, 750 Old Hickory Blvd, #150-2, Brentwood, TN, 37027. Phone 615.371.6137, Fax 615.599-1806. Web site: www.tennoil.com.

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