API No' 42-22141a82

Drilling Permit #612673

SWR Excention CaselDocket No

RAILROAD COMMISSION OF TEXASOIL & GAS DIVISION

APPLICATION FOR PER]VIIT TO DRILL, RECOMPLETE, OR RE-ENTERThis facsimile ll-l was generated electronically from data submitted to the RRC.

A certtfcation of the automated data is available in the RRC's Austin ofrce.

FORM W-l oTtzoo4

Permit Status: Approved

L RRC Operator No.

9046942. Operato/s Name (as shown on form P-5, Organization Report)

wEc, lNc.3. Operator Address (include street, city, state, zip):

5265 EAST H\A/Y 377GRANBURY, TX 760494. Lease Name

ACTON SWD5. Well No

1

GENERAL INFORMATION6. Purpose of filing (mark ALL appropriate boxes): E

, New Drill fl Recomptetion n Reclass I pi"ta Trmsfer I Re-Ent"r

R Amended n Amended as Drilled (BHL) (Also File Form W-lD)

7. Wellbore Profite (mark ALL appropriate boxes): El Verti"al I Horizontal (Also File Form W-lH) [ Directional (Also Frle Form W-tD) n sd"tr*k

8. Total Deplh | 9. Oo you have rhe right to develop the m n ",^10000 I minerals under any right-of-way ? - r Es - r\(' I 0. Is this well subject to Statewide Rule 36 (hydrogen sulfide area)? tr Yes m No

SURFACE LOCATION AND ACREAGE INFORMATIONI l. RRC District No 12. County

F Land fl BaylEstuary fl Inl-d wut".*uy fl off hor"7B HOOD 13. Surface Location

14- This well is to be located 2.9 miles in a NW direction {iom ACTON which is the nearest town in the countv of the well site

l5- Section 16. Block 17. Survey | 18. Abstract No.

GATES,AW I N-ZOS19. Distance to nearest lease line:

126 ft.20. Number of contiguous acres inlease, pooled unit, or unitized tract. 6.39

21. Lease Perpendiculars:

22. Survey Perpendiculars:

126586

f t fromtheA l in"und 375 ft from the NE I ine

line.ft from the SW l ine and 1114 ft from the NW

23. Is this a pooled unit? n V", E NIo I Za. Unitization Docket No: 25. Are you applying for Substandard Acreage Fietd? n y". (attach Form W-lA) E No

FIELD INFORiIATION List all fields of anticipated completion includins Wldcat List one zone per line.26. RRCDistrict No.

27. Field No 28. Field Name (exactly as shown in RRC records) 29 Well Type 30. Completion Depth 31. Distance to NearestWel[ in this Reservoir

32. Number of Wells onthis lease in thisReservoir

09 65280200 NEWARK, EAST (BARNETT SHALE) Injection Well 10000 0.00 1

BOTTOMHOLE LOCATION INFORMATION is required for DIRECTIONAL, HORIZONTAL, AND AMENDED AS DRILLED PERMITAPPLICATIONSRemarks[FILER Jun 27,2007 2:01 PM]: AMEND OPERATOR.

Certificate:I certifi' that information stated in this application is true and complete, to thebest ofmy knowledge.

< Walk in Application > Jun 27 ,2007Name of filer Date submitted

E-mail Address (OPTIONAL)RRC Use Only Data Validation Time Stamp: Jul 10, 2007 4:08 PM('As Approved Version )

Page 1 of 't

WEC, INC.'S "Acton" lease Well # 1

HOOD COUNTY

&ATEg, A.W.A-?os

Jrtrn Prut t t5801 Mat lock Rd

(rrdrtbury. TX 76049-53ti3Perry Hachrnan5600 Matlock Rd.

Grantlury TX 76049

Arny Park$5100 Mauoch Rd

(jranbrrrv TX 7604!t

t r r l in ih l ld

Legendo Acton SWD

* Side Owners

o !00 Io

-EEFeI1 inch equals 2OO f.€l

3r:tttrH|.iixi'jr:if :i i: :l,i.:t:r. i-j::,:i:

RAILROAD COMMISSION OF TEXASOIL & GAS DIVISION

PERMIT TO DRILL, DEEPEN, PLUG BACK, OR RE.ENTER ON A REGULAR OR ADMINISTRATIVE EXCEPTION LOCATION

PERMITNUMBER

612673DATE PERMIT ISSUED OR AMENDED(AMENDED) Jul 10,2007

DISTRICT*78

APINUMBER

42-221-31082FORM W-I RECEIVED

Jun27,2QO7COIJNTY

HOOD

ryPE OF OPERATION

NEW DRILLWELLBORE PROFILE(S)

VerticalACRES

6.39OPERATOR

wEc, tNc.5265 EAST H\

^/ 377

GRANBURY. TX 76049

904694 NOTICEThis permit and any allowable assigned may berevoked if payment for fee(s) submitted to theCommission is not honored.District Oflice Telcphone No:

(940) 723-2153LEASENAME

ACTON SWDWELL NUMBER

1

LOCATION2.9 miles NW direction from ACTON

TOTAL DEPTH10000

Section, Block and/or Survey

SECTION <

SURVEY< GATES,AW

sI-ocr { ABSTRACT< 205

DISTANCE TO SURVEY LINES

586ft . SW 1114ft . NWDISTANCE TONEAREST LEASE I,INE

126 ft.DISTANCE TO LEASE LINES

126 ft. SE 375 ft. NEDISTANCE TO NEAREST WELL ON LEASE

See FIELD(s) Below

FIELD(s) and LIMITATIONS:

* SEE FIELD DISTRICT FOR REPORTING PURPOSES *

FIELD NAMELEASE NAME

ACRES DEPTH WELL# DISTNEAREST LEASE NEAREST WELL

NEWARK, EAST (BARNETT SHALE)ACTON SWD

6.39 10.000 1 09126 0

RESTRICTIONS: Do noE use this welt for injecEion/disposal/hydrocarbon sEorage purposes wit.hout approvalby the EnvironmenEal Services sect ion of the Raj" l road Commission, Aust in, Texas of f ice.

THE FOLLOWING RESTRICTIONS APPLY TO ALL FIELDSThis well shall be completed and produced in compliance with applicable special field or statewide spacing and density rules. lf thiswell is to be used for brine mining, underground storage of liquid hydrocarbons in salt formations, or underground storage of gas insalt formations, a permit for that specific purpose must be obtained from Environmental Services prior to construction, includingdrilling, of the well in accordance with Statewide Rules 81 , 95, and 97.

Data Validation Time Stamp: Jul 10, 2007 4:08 PM( 'As Approved' Version ) Page 2 of2

il'ifiJf;f'noetr -s roe.odffing PermitNo.: l9l L 1.1 3

Rule 37138 Cas No.: -_

OIL AND GAS DMSION

APPLICATION FOR PERTIIT TO DRILL, RECOilIPLETE OR RE.ENTER

FORil Yll-l err rcyor

2. Operator's Nare (as shM on P-5, Organization Reporl): 3. Operalor Address (inchde sreet city, state and zip): RECEIVED

s26s EASI lIIGIta:r 377 ?RC Otr IEXAS

6. Purposo of Flling (Mark ALL appropriale boxes): trl New Drill

E Amenaed

Re-enter l{Pflftfiffj lgN SERVICESAUSTINTXD Am€nded s D,ilted (BHL) (r'Uso File Fom W-1D)

?. w€llbore Profile (Mark ALL appropriats boxsa): E vertiet E Horizontal(Also File Form W-1H) B Oirecsonal (Also File Ftrm W-1D) H Sidetrac*

9. Do )6u hav€ ths rEht to devebp E Yes tr ttorninerals wrder any right of way?

10. tsfi isrell sbjectloSbttrideRul€36(hydrog€nsulfidearea)? D Yes E no

13. Surfa€Lo.ation: E Lanc E Baylestuary E Intand'raterway E Ofshore

. ltufiDs of contiguous ac.es in lease,pookrd unit or uniliz€d fact:

2'1. Lease Perp€ndislars _, ,126 fL ftom the tins and 375 ft- from the lit line

line ard_Llll_ft. from lh€

23. ls his a pmled mit? Q Yes El tto 25. Areyouapplyingfor$rbstandardAtre€g€Fisb? D Yss(attadrFomW-1A) E No

28. Fi€ld Nam (€pcdy es shom in RRC r@.ds) 31. Disianco toNsrstW6ll in illi8

i0203h7

CERilFICATEI dedfle und€r D€nallias in S€c. 91.143, T6)€s Naturd Rosourcos Code. hal I am au$orized to file this

512.478.0059

q!!egEr-g.B.Narno gl5mrssontadve (Print)

06.26.20m

Tdephde (AC and rumber) E-rnail Address {OPTIOI{AL - lf proybed, e-mailBClr$o||lt