NGas Resources reports on horizontal drilling initiatives. Recent advances in horizontal drilling and completion technology have enhanced the value proposition for its operated properties by substantially increasing our recovery volumes and rates at dramatically lower finding costs.

Horizontal drilling also gives NGas access to areas where natural gas development would otherwise be delayed or constrained by coal mining activity or challenging terrain. The company focused these initiatives during 2008 in its Leatherwood field, where we completed 20 horizontal wells last year. Each well has a single lateral leg up to 3,500 feet through the Devonian shale formation, which is present throughout our Appalachian operating areas. Initial 30-day flow rates for its Leatherwood horizontals averaged 309 Mcf/d. The company achieved comparable results for our first two New Albany shale horizontals drilled late in 2008 on its Illinois Basin acreage and initial Devonian shale horizontals completed during the first quarter of 2009 in each of our Straight Creek, Fonde and Martin's Fork fields. The company plans to continue this transition throughout our operated properties.