The East Texas region represents the primary growth area for Goodrich Petroleum. The Company has accumulated interests, either through leases or farmouts, in approximately 155,600 gross (104,200 net) acres, as of September 1, 2007, in the Cotton Valley Trend in Rusk, Panola, Smith, Angelina, Nacogdoches, and Upshur Counties.

The Cotton Valley formation is predominately natural gas with 8% to 10% porosity. Wells drilled in the Cotton Valley Trend typically exhibit the following characteristics:

• Predominately natural gas
• High probability of success
• Significant development potential and repeatability
• Additional upside in the Pettit and Travis Peak

      Overview.  As of June 30, 2007, approximately 90% of our proved oil and gas reserves were in the Cotton Valley Trend of East Texas.  Our current Cotton Valley Trend drilling activities in East Texas are centered about six primary leasehold areas as further described below:

      Dirgin-Beckville.  The Dirgin-Beckville area is located in Panola County, Texas. As of September 1, 2007, we have acquired leases totaling approximately 13,000 gross acres with a working interest of 100%. As of June 30, 2007, we have successfully completed 58 Cotton Valley Trend wells in the Dirgin-Beckville area.  

      North Minden.  The North Minden area is located in Rusk County, Texas.  As of September 1, 2007, we have acquired leases totaling approximately 31,200 gross (27,700 net) acres with a working interest of 100%.  As of June 30, 2007, we have successfully completed 72 Cotton Valley Trend wells in the North Minden area. 

      South Henderson. The South Henderson area is located in Rusk County, Texas.  We have acquired leases totaling approximately 14,000 gross acres with an average working interest of approximately 80%.  As of July 1, 2006, we have successfully completed 13 Cotton Valley Trend wells in the South Henderson area. 

Angelina River Trend. The Angelina River Trend is located in Angelina and Nacogdoches Counties, Texas. We had acquired leases totaling approximately 63,200 gross (31,000 net) acres in the field as of September 1, 2007 and had successfully completed 23 wells in the field as of June 30, 2007. Of the 23 wells completed, 22 were Travis Peak completions and one was a horizontal James Lime completion. The Company owns a blended average 50% working interest in the trend.

           Other Cotton Valley Trend. We also own 8,000 gross (4,400 net) acres in four separate areas of the Cotton Valley Trend in Harrison, Smith and Upshur Counties, Texas, with an average working interest of approximately 98%.

      Production and Reserves.  For the wells completed to date in the Cotton Valley Trend, the average initial gross production rate per well was approximately 1,700 Mcfe per day. Proved reserves per location at mid-year 2007 averaged 1.1 Bcfe, versus an historical average of 1.0 Bcfe prior to 2007.