The East Texas region represents a significant growth area for Goodrich Petroleum. The Company has accumulated interests, either through leases or farmouts, in approximately 142,000 gross (93,000 net) acres, as of December 31, 2008, in the Cotton Valley Trend in Rusk, Panola, Smith, Angelina, Nacogdoches, and Upshur Counties.  Included in the acreage count is approximately 40,000 net acres currently prospective for the Haynesville Shale.

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 Pettet, Travis Peak, and Haynesville / Bossier Shales

      Overview.  As of December 31, 2008, approximately 100% of our proved oil and gas reserves were in the Cotton Valley Trend of East Texas and North Louisiana.  Our current Cotton Valley Trend drilling activities in East Texas are centered about six primary leasehold areas as further described below:

      Beckville.  The Beckville area is located in Panola and Rusk Counties, Texas. As of December 31, 2008, we have acquired leases totaling approximately 12,300 gross (11,800 net) acres with a working interest of 94%. As of December 31, 2008, we have successfully completed 75 Cotton Valley Trend wells in the Beckville area.

      North Minden.  The North Minden area is located in Panola and Rusk Counties, Texas.  As of December 31, 2008, we have acquired leases totaling approximately 31,800 gross (28,000 net) acres with a working interest of 98%.  As of December 31, 2008, we have successfully completed 114 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 11,700 gross (9,000 net) acres with an average working interest of approximately 80%.  As of December 31, 2008, we have successfully completed 35 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 82,600 gross (41,600 net) acres in the field as of December 31, 2008 and had successfully completed 88 wells in the field as of December 31, 2008. Of the 88 wells completed, 75 were Travis Peak completions and 13 were horizontal James Lime completions. The Company owns a blended average 63% working interest in the trend.

           Other Cotton Valley Trend. We also own 3,700 gross (2,000 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 90%.