Chief Oil & Gas Announces Marcellus Shale Update

DALLAS, TEXAS (November 8, 2010) – Chief Oil & Gas LLC ("Chief") today provided an update of its Marcellus Shale development. Chief’s Marcellus leasehold has increased to 600,000 gross acres in Pennsylvania, West Virginia and Maryland and the Marcellus drilling program continues to expand. To date, 93 wells have been drilled with 42 wells placed on production, 15 wells waiting on a pipeline, and 36 wells waiting on completion. Currently, 20 wells are being drilled or remain to be drilled in 2010. Chief entered 2010 with 3 drilling rigs and expects to exit 2010 with 7 rigs. Chief is producing 100 MMcfe per day with a target exit rate for 2010 of 115 MMcfe per day.

“Chief has drilled and completed wells in 9 counties in Pennsylvania (Lycoming, Bradford, Susquehanna, Wyoming, Clearfield, Blair, Somerset, Greene and Fayette) as well as Marshall County in West Virginia,” said Michael Radler, Chief Operating Officer. “Each of these areas has proved to be highly successful with EUR’s ranging from 3.75 Bcf to 7 Bcf varying by county, Marcellus thickness and lateral length.”

Recent wells placed online in Northeast Pennsylvania (NEPA) continue to perform and are averaging between 4.7 and 8.0 MMcfd with an average lateral length of 2,568 ft. In addition, Chief has 3 multi-well pad sites in NEPA in two separate counties that have already reached more than 1 Bcf in production and achieved in just a few months of production. In Central Pennsylvania, two recently completed wells had an average test rate of 4.9 MMcfd and 5.3 MMcfd with lateral lengths of 4,864 ft and 4,143 ft respectively. The most recent Chief well placed on production has a lateral length of 4,994 ft and a daily production rate in excess of 15 MMcfd on choke.

“Our experienced shale team has done an excellent job with drilling and completion designs and our results in all areas of the Marcellus Shale continue to be impressive,” continued Radler.

About Chief Oil & Gas

Based in Dallas, Texas, Chief Oil & Gas is privately held, independent oil & gas company engaged in the exploration, development and production of oil and natural gas reserves from fields throughout the continental United States.