The Hawkville Field, in La Salle and McMullen Counties, Texas, is expected to continue its role as the core commercial production area for natural gas and liquids. With approximately 25 wells on production, the bounds of Hawkville Field production are expanding to the east and north. The initial well in the Joint Venture with Swift Energy was successfully completed during the first quarter. The Bracken JV #1H initially tested at a rate of 9.0 Mmcfe/d on a 24/64" choke. The well's production rate was subsequently restricted temporarily, awaiting the installation of further production facilities, to a choke setting of 17/64" at a rate of 6.4 Mmcfe/d with a stable flowing casing pressure ("FCP") of 5500#. The second well in the Joint Venture is waiting on completion and the third well is drilling.

The third well in the Black Hawk prospect in Dewitt County, Texas, the Kickendahl #1H, was recently completed at a rate of 3.1 Mmcf/d and 745 Bc/d on a 12/64" choke with 7,550# flowing casing pressure. This result is very similar to the first two wells that have been completed, even though the well was still cleaning up and the rate was increasing at the time of the report. The fourth well to be completed will be the Krause #2H. Its lateral length is approximately 5900', and it is the first well in the prospect with an extended lateral length. Its completion is scheduled for mid-May.

In the Red Hawk prospect in Zavala County, Texas, the Company is drilling ahead on its second well, the Mustang Ranch "C" #1H. It is anticipated that the well will be completed within the next 30 days.

To date, Hawk Field Services has completed construction of approximately 65 miles of primarily 16" pipe in the Eagle Ford Shale. An additional 100 miles of gas gathering line, 15 miles of condensate gathering line and 60 miles of liquids gathering lines are budgeted for construction during the remainder of 2010. The Company also expects to increase treating capacity in the Hawkville Field area by installing another 150 gallons per minute (GPM) amine plant, increasing Petrohawk's total treating capacity to 250 GPM in the Eagle Ford Shale. An additional 12,500 barrels of condensate stabilization capacity are scheduled to be added to plant sites in both the Black Hawk and Hawkville areas during 2010.

In the Anadarko Petroleum Corporation operated portion of St. Mary's acreage position, the Company has participated in 15 wells that have been drilled and completed in the program to date. An additional eight (8) wells in which the Company has a working interest are waiting on completion. St. Mary is also participating with this operator in the build out of infrastructure in this portion of the play. Currently, there are four (4) rigs operating in the partner operated portion of the play.

Since inception in the Eagle Ford play, Rosetta has drilled 11 horizontal wells and completed six wells. Five of the completions are located in the Gates Ranch area. The Company is currently running two drilling rigs in the play and averaging two completions per month on horizontal wells with average lateral lengths of approximately 4,700 feet and fracture stimulations averaging 13-15 frac stages per well. There are currently five wells waiting on completion. The Company is actively seeking additional stimulation equipment to work off this backlog.

The gross per well seven-day rate on the 2010 Gates Ranch wells averaged 330 Bbls of condensate, 460 Bbls of NGLs, and 2.9 MMcf/d of residue gas, for a total of over 7.6 MMcfe/d per well. Importantly, about 80% of the value from these wells is comprised from liquids. The Company is currently producing approximately 30 MMcfe/d on a gross basis, or 22 MMcfe/d on a net basis, from all combined Eagle Ford wells. This is up from zero a year ago. The Gates Ranch wells account for 95% of this production.

Rosetta expects to drill 25-30 Eagle Ford wells in 2010, with 20-25 wells planned in the liquids-prone Gates Ranch area. The Company believes it has de-risked this highly economic asset, and on an 80-acre spacing basis, has identified over 350 development locations on the Gates Ranch. The 2010 drilling program represents less than 10% of this significant future opportunity.

Regarding Rosetta's recent Eagle Ford activities, Limbacher commented, "Our Eagle Ford results are making a dramatic impact on the Company's performance. In less than one year, Rosetta has taken the Gates Ranch area from concept to full-scale development mode, and we still have other prospective areas of the play to explore. We are already achieving strong operating results and the shift to a higher liquids mix is adding significant margin to our profitability. Our acreage is largely concentrated in the areas of the play with the most attractive economics and we have built our positions in such a way as to establish meaningful footprints and operational control. We think there is tremendous potential to create value for our shareholders from this play."

In our Fashing area, approximately 16 miles to the north of our Pawnee area, and where we own an approximate 50% working interest in 1,500 gross HBP acres, leasing and drilling activity has increased dramatically. EOG has been active, drilling and permitting horizontal wells approximately two miles north of our leasehold, which is currently believed to be in the oil corridor of the Eagle Ford Shale Play.

We also own a 95% working interest in approximately 4,600 gross acres in southeast Zavala County where activity targeting the Eagle Ford Shale in the oil corridor of the play has increased. Petrohawk has announced the initial results on their Redhawk Prospect located approximately 17 miles WNW and Chesapeake has drilled to total depth on their initial horizontal well in Zavala County approximately 6 miles N of our leasehold. We are currently reviewing the area for potential late 2010 or early 2011 company operated drilling activity.