----

| (Mark One) |                                             |   |
|------------|--------------------------------------------------|--------|
| x          | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) |   |
|       | OF THE SECURITIES EXCHANGE ACT OF 1934           |   |
|       | For the quarterly period ended March 31, 2011    |   |

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)                                                                                                                                                                       |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   | OF THE SECURITIES EXCHANGE ACT OF 1934                                                                                                                                                                                  |   |
|   | For the transition period from                 to                 |   |
|   | Commission File Number 001-10924                                                                                                                                                                                        |   |

| CLAYTON WILLIAMS ENERGY, INC.                          |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

| Delaware                                                       |   | 75-2396863                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |
| Six Desta Drive - Suite 6500                                   |   |                                 |
| Midland, Texas                                                 |   | 79705-5510                           |
| (Address of principal executive offices)                       |   | (Zip code)                           |
| Registrant’s telephone number, including area code:      |   | (432) 682-6324                       |

| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                     | x Yes |   |  ̈ No |   |

| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                        |  ̈ Yes |   |  ̈ No |   |

| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                           | Large accelerated filer   ̈ |   | Accelerated filer  x |   |
|                                                                                                                                                                                                                                                                                                                                           | Non-accelerated filer   ̈ |   | Smaller reporting company  ̈ |   |

| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). |
|------------------------------------------------------------------------------------------------------------------|
|                                                                                                             |  ̈ Yes |   | x No |   |

| There were 12,162,536 shares of Common Stock, $.10 par value, of the registrant outstanding as of May 6, 2011. |
|---------------------------------------------------------------------------------------------------------------------|

----

| PART I.  FINANCIAL INFORMATION |
|------------------------------------------|
|                                     |   | Page |
|                                     |   |   |   |
| Item 1.                                  | Financial Statements |   |   |
|                                     |   |   |   |
|                                     | Consolidated Balance Sheets as of March 31, 2011 |   |   |
|                                     | and December 31, 2010                                                                                                 | 3 |
|                                     |   |   |   |
|                                     | Consolidated Statements of Operations for the three months |   |   |
|                                     | ended March 31, 2011 and 2010                                                                                                 | 5 |
|                                     |   |   |   |
|                                     | Consolidated Statement of Stockholders’ Equity for the three months |   |   |
|                                     | ended March 31, 2011                                                                                                 | 6 |
|                                     |   |   |   |
|                                     | Consolidated Statements of Cash Flows for the three months |   |   |
|                                     | ended March 31, 2011 and 2010                                                                                                 | 7 |
|                                     |   |   |   |
|                                     | Notes to Consolidated Financial Statements                                                                                                     | 8 |
|                                     |   |   |   |
| Item 2.                                  | Management’s Discussion and Analysis of Financial |   |   |
|                                     | Condition and Results of Operations                                                                                                | 19 |
|                                     |   |   |   |
| Item 3.                                  | Quantitative and Qualitative Disclosures About Market Risks                                                                                                     | 32 |
|                                     |   |   |   |
| Item 4.                                  | Controls and Procedures                                                                                                     | 34 |
|                                     |   |   |   |
|                                     |   |   |   |
| PART II.  OTHER INFORMATION    |
| Item 1A.                                 | Risk Factors                                                                                                     | 35 |
|                                     |   |   |   |
| Item 6.                                  | Exhibits                                                                                                     | 35 |
|                                     |   |   |   |
|                                     | Signatures                                                                                                     | 37 |

----

Financial 

WILLIAMS 

| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | March 31, |   |   | December 31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2011 |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | (Unaudited) |   |   |   |   |
| CURRENT ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                              |   | $ | 14,512 |   |   | $ | 8,720 |   |
| Accounts receivable:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Oil and gas sales                                                                                                                                               |   |   | 37,245 |   |   |   | 35,361 |   |
| Joint interest and other, net                                                                                                                                   |   |   | 12,772 |   |   |   | 9,893 |   |
| Affiliates                                                                                                                                                      |   |   | 1,754 |   |   |   | 796 |   |
| Inventory                                                                                                                              |   |   | 30,707 |   |   |   | 39,218 |   |
| Deferred income taxes                                                                                                                  |   |   | 2,813 |   |   |   | 5,074 |   |
| Assets held for sale                                                                                                                   |   |   | - |   |   |   | 8,762 |   |
| Prepaids and other                                                                                                                     |   |   | 15,048 |   |   |   | 5,997 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 114,851 |   |   |   | 113,821 |   |
| PROPERTY AND EQUIPMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Oil and gas properties, successful efforts method                                                                                      |   |   | 1,792,867 |   |   |   | 1,707,252 |   |
| Natural gas gathering and processing systems                                                                                           |   |   | 18,153 |   |   |   | 18,153 |   |
| Contract drilling equipment                                                                                                            |   |   | 60,019 |   |   |   | 58,486 |   |
| Other                                                                                                                                  |   |   | 17,637 |   |   |   | 17,425 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 1,888,676 |   |   |   | 1,801,316 |   |
| Less accumulated depreciation, depletion and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | (1,060,567 | ) |   |   | (1,034,227 | ) |
| Property and equipment, net                                                                                                                                     |   |   | 828,109 |   |   |   | 767,089 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| OTHER ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Debt issue costs, net                                                                                                                  |   |   | 12,945 |   |   |   | 8,323 |   |
| Other                                                                                                                                  |   |   | 1,918 |   |   |   | 1,684 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 14,863 |   |   |   | 10,007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $ | 957,823 |   |   | $ | 890,917 |   |

----

| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | March 31, |   |   | December 31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2011 |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | (Unaudited) |   |   |   |   |
| CURRENT LIABILITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |
| Accounts payable:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |
| Trade                                                                                                                                             |   | $ | 63,339 |   |   | $ | 74,123 |   |
| Oil and gas sales                                                                                                                                 |   |   | 31,905 |   |   |   | 28,920 |   |
| Affiliates                                                                                                                                        |   |   | 946 |   |   |   | 1,251 |   |
| Fair value of derivatives                                                                                                |   |   | 36,175 |   |   |   | 7,224 |   |
| Accrued liabilities and other                                                                                            |   |   | 23,728 |   |   |   | 22,202 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 156,093 |   |   |   | 133,720 |   |
| NON-CURRENT LIABILITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| Long-term debt                                                                                                           |   |   | 428,835 |   |   |   | 385,000 |   |
| Deferred income taxes                                                                                                    |   |   | 71,515 |   |   |   | 78,035 |   |
| Fair value of derivatives                                                                                                |   |   | 19,085 |   |   |   | 3,409 |   |
| Other                                                                                                                    |   |   | 40,692 |   |   |   | 41,301 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 560,127 |   |   |   | 507,745 |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Preferred stock, par value $.10 per share, authorized – 3,000,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|  shares; none issued                                                                                                |   |   | - |   |   |   | - |   |
| Common stock, par value $.10 per share, authorized – 30,000,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
|  shares; issued and outstanding – 12,155,536 shares in 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|  and 12,154,536 shares in 2010                                                                                      |   |   | 1,215 |   |   |   | 1,215 |   |
| Additional paid-in capital                                                                                               |   |   | 152,316 |   |   |   | 152,290 |   |
| Retained earnings                                                                                                        |   |   | 88,072 |   |   |   | 95,947 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 241,603 |   |   |   | 249,452 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $ | 957,823 |   |   | $ | 890,917 |   |

----

CLAYTON 

|                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Three Months Ended |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | March 31,          |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2011               |    |   | 2010 |   |
| REVENUES                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               |    |   |   |   |
| Oil and gas sales                                                                                                                 |   | $                  | 94,932  |   |   | $ | 79,042 |   |
| Natural gas services                                                                                                              |   |               | 409     |   |   |   | 503 |   |
| Drilling rig services                                                                                                             |   |               | 260     |   |   |   | - |   |
| Gain on sales of assets                                                                                                           |   |               | 13,572  |   |   |   | 286 |   |
| Total revenues                                                                                                                                             |   |               | 109,173 |   |   |   | 79,831 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               |    |   |   |   |   |   |
| COSTS AND EXPENSES                                                                                                                                                                                                                                                                                                                                                                                                                            |   |               |    |   |   |   |   |   |
| Production                                                                                                                        |   |               | 24,820  |   |   |   | 20,927 |   |
| Exploration:                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |               |    |   |   |   |   |   |
| Abandonments and impairments                                                                                                                               |   |               | 877     |   |   |   | 2,878 |   |
| Seismic and other                                                                                                                                          |   |               | 1,278   |   |   |   | 1,660 |   |
| Natural gas services                                                                                                              |   |               | 263     |   |   |   | 348 |   |
| Drilling rig services                                                                                                             |   |               | 786     |   |   |   | 662 |   |
| Depreciation, depletion and amortization                                                                                                                                                                                                                                                                                                                                                                                                      |   |               | 23,744  |   |   |   | 25,612 |   |
| Accretion of abandonment obligations                                                                                                                                                                                                                                                                                                                                                                                                          |   |               | 674     |   |   |   | 647 |   |
| General and administrative                                                                                                        |   |               | 12,499  |   |   |   | 6,224 |   |
| Loss on sales of assets and impairment                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |    |   |   |   |   |   |
| of inventory                                                                                                                                |   |               | 196     |   |   |   | - |   |
| Total costs and expenses                                                                                                                                   |   |               | 65,137  |   |   |   | 58,958 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               |    |   |   |   |   |   |
| Operating income                                                                                                                                           |   |               | 44,036  |   |   |   | 20,873 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               |    |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |    |   |   |   |   |   |
| Interest expense                                                                                                                  |   |               | (6,412  | ) |   |   | (6,109 | ) |
| Loss on early extinguishment of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                |   |               | (4,594  | ) |   |   | - |   |
| Gain (loss) on derivatives                                                                                                        |   |               | (46,345 | ) |   |   | 10,301 |   |
| Other                                                                                                                             |   |               | 1,087   |   |   |   | 828 |   |
| Total other income (expense)                                                                                                                               |   |               | (56,264 | ) |   |   | 5,020 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               |    |   |   |   |   |   |
| Income (loss) before income taxes                                                                   |   |               | (12,228 | ) |   |   | 25,893 |   |
| Income tax (expense) benefit                                                                        |   |               | 4,353   |   |   |   | (9,218 | ) |
| NET INCOME (LOSS)                                                                                   |   | $                  | (7,875  | ) |   | $ | 16,675 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               |    |   |   |   |   |   |
| Net income (loss) per common share                                                                                                                                                                                                                                                                                                                                                                                                            |   |               |    |   |   |   |   |   |
| Basic                                                                                                                             |   | $                  | (0.65   | ) |   | $ | 1.37 |   |
| Diluted                                                                                                                           |   | $                  | (0.65   | ) |   | $ | 1.37 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               |    |   |   |   |   |   |
| Weighted average common shares outstanding:                                                                                                                                                                                                                                                                                                                                                                                                   |   |               |    |   |   |   |   |   |
| Basic                                                                                                                             |   |               | 12,156  |   |   |   | 12,146 |   |
| Diluted                                                                                                                           |   |               | 12,156  |   |   |   | 12,146 |   |

----

CLAYTON 

|                          |   | Common Stock |   |   | Additional |   |   |    |   |
|-------------------------------|--------|--------------|--------|--------|------------|--------|--------|---------|--------|
|                          |   | No. of       |   |   | Par        |   |   | Paid-In |   |   | Retained |   |
|                          |   | Shares       |   |   | Value      |   |   | Capital |   |   | Earnings |   |
| BALANCE,                      |   |         |   |   |       |   |   |    |   |   |   |   |
| December 31, 2010             |   |         | 12,155 |   |       | $      | 1,215  |    |   | $ | 152,290 |   |   | $ | 95,947 |   |
| Net loss                      |   |         | -      |   |       |   | -      |    |   |   | - |   |   |   | (7,875 | ) |
| Issuance of stock through     |   |         |   |   |       |   |   |    |   |   |   |   |   |   |   |   |
| compensation plans, including |   |         |   |   |       |   |   |    |   |   |   |   |   |   |   |   |
| income tax benefits           |   |         | 1      |   |       |   | -      |    |   |   | 26 |   |   |   | - |   |
| BALANCE,                      |   |         |   |   |       |   |   |    |   |   |   |   |   |   |   |   |
| March 31, 2011                |   |         | 12,156 |   |       | $      | 1,215  |    |   | $ | 152,316 |   |   | $ | 88,072 |   |

----

CLAYTON 

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Three Months Ended |     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | March 31,          |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2011               |     |   | 2010 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |     |   |   |   |
| Net income (loss)                                                                                                                         |   | $                  | (7,875   | ) |   | $ | 16,675 |   |
| Adjustments to reconcile net income (loss) to cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |               |     |   |   |   |   |   |
| provided by operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |               |     |   |   |   |   |   |
| Depreciation, depletion and amortization                                                                                                                                |   |               | 23,744   |   |   |   | 25,612 |   |
| Exploration costs                                                                                                                                                       |   |               | 877      |   |   |   | 2,878 |   |
| Gain on sales of assets and impairment of inventory, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |               | (13,376  | ) |   |   | (286 | ) |
| Deferred income tax expense (benefit)                                                                                                                                   |   |               | (4,353   | ) |   |   | 9,218 |   |
| Non-cash employee compensation                                                                                                                                          |   |               | 7,401    |   |   |   | 2,010 |   |
| Unrealized (gain) loss on derivatives                                                                                                                                   |   |               | 44,627   |   |   |   | (8,602 | ) |
| Accretion of abandonment obligations                                                                                                                                    |   |               | 674      |   |   |   | 647 |   |
| Amortization of debt issue costs                                                                                                                                        |   |               | 568      |   |   |   | 335 |   |
| Loss on early extinguishment of long-term debt                                                                                                                          |   |               | 4,594    |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |     |   |   |   |   |   |
| Changes in operating working capital:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |     |   |   |   |   |   |
| Accounts receivable                                                                                                                                                     |   |               | (5,721   | ) |   |   | (1,468 | ) |
| Accounts payable                                                                                                                                                        |   |               | (11,954  | ) |   |   | (8,989 | ) |
| Other                                                                                                                                                                   |   |               | (5,915   | ) |   |   | (7,654 | ) |
| Net cash provided by operating activities                                                                                                                                                             |   |               | 33,291   |   |   |   | 30,376 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |     |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |     |   |   |   |   |   |
| Additions to property and equipment                                                                                                       |   |               | (82,993  | ) |   |   | (58,276 | ) |
| Proceeds from sales of assets                                                                                                             |   |               | 11,002   |   |   |   | 479 |   |
| Change in equipment inventory                                                                                                             |   |               | 10,516   |   |   |   | 2,452 |   |
| Other                                                                                                                                     |   |               | (120     | ) |   |   | (95 | ) |
| Net cash used in investing activities                                                                                                                                                                 |   |               | (61,595  | ) |   |   | (55,440 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |     |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |     |   |   |   |   |   |
| Proceeds from long-term debt                                                                                                              |   |               | 293,000  |   |   |   | 26,000 |   |
| Repayments of long-term debt                                                                                                              |   |               | (256,165 | ) |   |   | - |   |
| Premium on early extinguishment of long-term debt                                                                                         |   |               | (2,765   | ) |   |   | - |   |
| Proceeds from exercise of stock options                                                                                                   |   |               | 26       |   |   |   | - |   |
| Net cash provided by financing activities                                                                                                                                                             |   |               | 34,096   |   |   |   | 26,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |     |   |   |   |   |   |
| NET INCREASE IN CASH AND CASH EQUIVALENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |               | 5,792    |   |   |   | 936 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |     |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |               |     |   |   |   |   |   |
| Beginning of period                                                                                                                       |   |               | 8,720    |   |   |   | 14,013 |   |
| End of period                                                                                                                             |   | $                  | 14,512   |   |   | $ | 14,949 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               |     |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |               |     |   |   |   |   |   |
| Cash paid for interest, net of amounts capitalized                                                                                        |   | $                  | 1,061    |   |   | $ | 10,134 |   |

----

CLAYTON 

| 1. | Nature of Operations |
|----|----------------------|

| 2. | Presentation |
|----|--------------|

----

| 3. | Long-Term Debt |
|----|----------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | March 31,      |    |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2011           |    |   | 2010         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | (In thousands) |    |
| 7.75% Senior Notes due 2019                                                                          |   | $              | 300,000 |   |         | $      | - |   |
| 73⁄4% Senior Notes due 2013                                                                       |   |           | 81,835  |   |         |   | 225,000 |   |
| Revolving credit facility, due November 2015                                                                                                                                                                                                                                                                                                                                                                                                                       |   |           | 47,000  |   |         |   | 160,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $              | 428,835 |   |         | $      | 385,000 |   |

----

| 4. | Other Non-Current Liabilities |
|----|-------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | March 31,      |   |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2011           |   |   | 2010         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | (In thousands) |   |
| Abandonment obligations                                                                                    |   | $              | 39,846 |   |         | $      | 40,444 |   |
| Other                                                                                                      |   |           | 846    |   |         |   | 857 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $              | 40,692 |   |         | $      | 41,301 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Three Months Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | March 31,          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2011               |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | (In thousands)     |   |
| Beginning of period                                                                                    |   | $                  | 40,444 |   |   | $ | 38,412 |   |
| Additional abandonment obligations from new properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               | 618    |   |   |   | 646 |   |
| Sales or abandonments of properties                                                                                        |   |               | (1,890 | ) |   |   | (173 | ) |
| Accretion expense                                                                                                          |   |               | 674    |   |   |   | 647 |   |
| End of period                                                                                          |   | $                  | 39,846 |   |   | $ | 39,532 |   |

----

| 5. | Compensation Plans |
|----|--------------------|

----

| 6. | Derivatives |
|----|-------------|

|                                                                                                                                                                                                 |   | Oil    |      |   | Gas    |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                                                                                                                                                                 |   | Bbls   |      |   | Price  |   |   | MMBtu (a) |   |   | Price |   |
| Production Period:                                                                                                                                                                                   |   |   |      |   |   |   |   |   |   |   |   |   |
| 2nd Quarter 2011                               |   |   | 632,000   |   |   | $      | 83.71 |   |   |   | 1,650,000 |   |   | $ | 7.07 |   |
| 3rd Quarter 2011                               |   |   | 547,000   |   |   | $      | 83.78 |   |   |   | 1,560,000 |   |   | $ | 7.07 |   |
| 4th Quarter 2011                               |   |   | 540,000   |   |   | $      | 83.78 |   |   |   | 1,500,000 |   |   | $ | 7.07 |   |
| 2012                                           |   |   | 1,864,000 |   |   | $      | 93.65 |   |   |   | - |   |   | $ | - |   |
| 2013                                           |   |   | 480,000   |   |   | $      | 96.70 |   |   |   | - |   |   | $ | - |   |
|                                                                                                                                                                                                 |   |   | 4,063,000 |   |   |   |   |   |   |   | 4,710,000 |   |   |   |   |   |
|                                                                                                                                                              |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (a)   One MMBtu equals one Mcf at a Btu factor of 1,000.                                                                                                                              |   |

----

|                          | Fair Value of Derivative Instruments as of March 31, 2011 |   |
|-------------------------------|-----------------------------------------------------------|--------|
|                          | Asset Derivatives                                         |   | Liability Derivatives |   |
|                          | Balance Sheet                                             |   |   |   | Balance Sheet |   |   |   |
|                          | Location                                                  |   | Fair Value |   | Location |   | Fair Value |   |
|                          |                                                      |   | (In thousands) |   |   |   | (In thousands) |   |
| Derivatives not designated as |                                                      |   |   |   |   |   |   |
| hedging instruments:          |                                                      |   |   |   |   |   |   |   |
|                          |                                                      |   |   |   |   |   |   |   |
| Commodity derivatives         | Fair value of derivatives:                                |   |   |   | Fair value of derivatives: |   |   |   |
|                          | Current                                                   |   | $ | - |   | Current |   | $ | 36,175 |   |
|                          | Non-current                                               |   |   | - |   | Non-current |   |   | 19,085 |   |
| Total                         |                                                      |   | $ | - |   |   |   | $ | 55,260 |   |

|                          | Fair Value of Derivative Instruments as of December 31, 2010 |   |
|-------------------------------|--------------------------------------------------------------|--------|
|                          | Asset Derivatives                                            |   | Liability Derivatives |   |
|                          | Balance Sheet                                                |   |   |   | Balance Sheet |   |   |   |
|                          | Location                                                     |   | Fair Value |   | Location |   | Fair Value |   |
|                          |                                                         |   | (In thousands) |   |   |   | (In thousands) |   |
| Derivatives not designated as |                                                         |   |   |   |   |   |   |
| hedging instruments:          |                                                         |   |   |   |   |   |   |   |
|                          |                                                         |   |   |   |   |   |   |   |
| Commodity derivatives         | Fair value of derivatives:                                   |   |   |   | Fair value of derivatives: |   |   |   |
|                          | Current                                                      |   | $ | - |   | Current |   | $ | 7,224 |   |
|                          | Non-current                                                  |   |   | - |   | Non-current |   |   | 3,409 |   |
| Total                         |                                                         |   | $ | - |   |   |   | $ | 10,633 |   |

|                                                 |   | March 31, 2011 |    |
|------------------------------------------------------|--------|----------------|---------|
|                                                 |   | Assets         |    |   | Liabilities |   |
|                                                 |   | (In thousands) |    |
| Fair value of derivatives – gross presentation |   | $              | 11,704  |   |   | $ | 66,964 |   |
| Effects of netting arrangements                      |   |           | (11,704 | ) |   |   | (11,704 | ) |
| Fair value of derivatives – net presentation   |   | $              | -       |   |   | $ | 55,260 |   |

|                                                 |   | December 31, 2010 |    |
|------------------------------------------------------|--------|-------------------|---------|
|                                                 |   | Assets            |    |   | Liabilities |   |
|                                                 |   | (In thousands)    |    |
| Fair value of derivatives – gross presentation |   | $                 | 16,051  |   |   | $ | 26,684 |   |
| Effects of netting arrangements                      |   |              | (16,051 | ) |   |   | (16,051 | ) |
| Fair value of derivatives – net presentation   |   | $                 | -       |   |   | $ | 10,633 |   |

----

|                          |   | Amount of Gain or (Loss) Recognized in Earnings |
|-------------------------------|--------|-------------------------------------------------|
|                          |   |                                            |   | Three Months Ended |
|                          |   | Location of Gain or (Loss)                      |   | March 31, |
|                          |   | Recognized in Earnings                          |   | 2011 |   | 2010 |
|                          |   |                                            |   | (In thousands) |
| Derivatives not designated as |   |                                            |   |   |   |   |
| hedging instruments:          |   |                                            |   |   |   |   |
|                          |   |                                            |   |   |   |   |
| Commodity derivatives         |   | Other income (expense) -                        |   |   |   |   |
|                          |   | Gain (loss) on derivatives                      |   | $                   (46,345) |   | $                   10,301 |
| Total                         |   |                                            |   | $                   (46,345) |   | $                   10,301 |

| 7. | Financial Instruments |
|----|-----------------------|

|      Level 1 - | Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. |
|-----------------------------------------|---------------------------------------------------------------------------------------------------------------------|

|      Level 2 - | Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. |
|-----------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|      Level 3 - | Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. |
|-----------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                    |   | March 31,         |   |   | December 31,      |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2011              |   |   | 2010              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Significant Other |   |   | Significant Other |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Observable Inputs |   |   | Observable Inputs |   |
| Description                                                                                                                                                                                                                                                                                                                                                                                                             |   | (Level 2)         |   |   | (Level 2)         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                    |   | (In thousands)    |   |
| Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                            |   |              |   |   |              |   |
| Fair value of commodity derivatives                                                               |   | $                 | 55,260 |   |              | $      | 10,633 |   |
| Total liabilities                                                                       |   | $                 | 55,260 |   |              | $      | 10,633 |   |

| 8. | Income Taxes |
|----|--------------|

| 9. | Sales of Assets and Impairments of Inventory |
|----|----------------------------------------------|

|                                                                                                                                                                                                                                                                                                                    |   | Three Months Ended |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                    |   | March 31,          |   |
|                                                                                                                                                                                                                                                                                                                    |   | 2011               |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                    |   | (In thousands)     |   |
|                                                                                                                                                                                                                                                                                                                    |   |               |   |   |   |   |
| Gain on sales of assets                                                 |   | $                  | 13,572 |   |   | $ | 286 |   |
|                                                                                                                                                                                                                                                                                                                    |   |               |   |   |   |   |   |   |
| Loss on sales of assets and impairment                                                                                                                                                                                                                                                                                  |   |               |   |   |   |   |   |   |
| of inventory:                                                                                                                                                                                                                                                                                                           |   |               |   |   |   |   |   |   |
| Loss on sales of assets                                                                     |   |               | (3     | ) |   |   | - |   |
| Impairment of inventory                                                                     |   |               | (193   | ) |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                    |   |               | (196   | ) |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                    |   |               |   |   |   |   |   |   |
| Net gain                                                                |   | $                  | 13,376 |   |   | $ | 286 |   |

----

| 10. | Oil and Gas Properties |
|-----|------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | March 31,      |       |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|------------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2011           |       |   | 2010         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | (In thousands) |       |
| Proved properties                                                                                       |   | $              | 1,738,033  |   |         | $      | 1,655,217 |   |
| Unproved properties                                                                                     |   |           | 54,834     |   |         |   | 52,035 |   |
| Total capitalized costs                                                                                 |   |           | 1,792,867  |   |         |   | 1,707,252 |   |
| Accumulated depreciation, depletion and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |           | (1,006,411 | )      |         |   | (983,119 | ) |
| Net capitalized costs                                                                                                            |   | $              | 786,456    |   |         | $      | 724,133 |   |

| 11. | Impairment of Property and Equipment |
|-----|--------------------------------------|

----

| 12. | Segment Information |
|-----|---------------------|

| For the Three Months Ended                   |   |        |    |   |     |   |    |         |   |   |         |   |
|----------------------------------------------|--------|-------------|---------|--------|----------|--------|---------|--------------|--------|--------|--------------|--------|
| March 31, 2011                               |   |        |    |   |     |   |    |         |   |   |         |   |
| (Unaudited)                                  |   |        |    |   | Contract |   |    | Intercompany |   |   | Consolidated |   |
| (In thousands)                               |   | Oil and Gas |    |   | Drilling |   |    | Eliminations |   |   | Total        |   |
|                                         |   |        |    |   |     |   |    |         |   |   |         |   |
| Revenues                                     |   | $           | 108,913 |   |     | $      | 12,159  |         |   | $      | (11,899      | )      |   | $ | 109,173 |   |
| Depreciation, depletion and amortization (a) |   |        | 23,484  |   |     |   | 2,855   |         |   |   | (2,595       | )      |   |   | 23,744 |   |
| Other operating expenses (b)                 |   |        | 40,533  |   |     |   | 9,409   |         |   |   | (8,549       | )      |   |   | 41,393 |   |
| Interest expense                             |   |        | 6,412   |   |     |   | -       |         |   |   | -            |   |   |   | 6,412 |   |
| Other (income) expense                       |   |        | 63,074  |   |     |   | (13,222 | )            |   |   | -            |   |   |   | 49,852 |   |
| Income (loss) before income taxes            |   |        | (24,590 | )      |     |   | 13,117  |         |   |   | (755         | )      |   |   | (12,228 | ) |
|                                         |   |        |    |   |     |   |    |         |   |   |         |   |   |   |   |   |
| Income tax (expense) benefit                 |   |        | 8,680   |   |     |   | (4,327  | )            |   |   | -            |   |   |   | 4,353 |   |
|                                         |   |        |    |   |     |   |    |         |   |   |         |   |   |   |   |   |
| Net income (loss)                            |   | $           | (15,910 | )      |     | $      | 8,790   |         |   | $      | (755         | )      |   | $ | (7,875 | ) |
|                                         |   |        |    |   |     |   |    |         |   |   |         |   |   |   |   |   |
| Total assets                                 |   | $           | 909,159 |   |     | $      | 49,419  |         |   | $      | (755         | )      |   | $ | 957,823 |   |
| Additions to property and equipment          |   | $           | 86,687  |   |     | $      | 1,553   |         |   | $      | -            |   |   | $ | 88,240 |   |
|                                         |   |        |    |   |     |   |    |         |   |   |         |   |   |   |   |   |

| For the Three Months Ended                                   |   |        |    |   |     |   |   |         |   |   |         |   |
|--------------------------------------------------------------|--------|-------------|---------|--------|----------|--------|--------|--------------|--------|--------|--------------|--------|
| March 31, 2010                                               |   |        |    |   |     |   |   |         |   |   |         |   |
| (Unaudited)                                                  |   |        |    |   | Contract |   |   | Intercompany |   |   | Consolidated |   |
| (In thousands)                                               |   | Oil and Gas |    |   | Drilling |   |   | Eliminations |   |   | Total        |   |
|                                                         |   |        |    |   |     |   |   |         |   |   |         |   |
| Revenues                                                     |   | $           | 79,831  |   |     | $      | 5,973  |         |   | $      | (5,973       | )      |   | $ | 79,831 |   |
| Depreciation, depletion and amortization (a)                 |   |        | 24,760  |   |     |   | 2,338  |         |   |   | (1,486       | )      |   |   | 25,612 |   |
| Other operating expenses (b)                                 |   |        | 32,863  |   |     |   | 4,606  |         |   |   | (4,123       | )      |   |   | 33,346 |   |
| Interest expense                                             |   |        | 6,109   |   |     |   | -      |         |   |   | -            |   |   |   | 6,109 |   |
| Other (income) expense                                       |   |        | (11,129 | )      |     |   | -      |         |   |   | -            |   |   |   | (11,129 | ) |
| Income (loss) before income taxes                            |   |        | 27,228  |   |     |   | (971   | )            |   |   | (364         | )      |   |   | 25,893 |   |
|                                                         |   |        |    |   |     |   |   |         |   |   |         |   |   |   |   |   |
| Income tax (expense) benefit                                 |   |        | (9,558  | )      |     |   | 340    |         |   |   | -            |   |   |   | (9,218 | ) |
|                                                         |   |        |    |   |     |   |   |         |   |   |         |   |   |   |   |   |
| Net income (loss)                                            |   | $           | 17,670  |   |     | $      | (631   | )            |   | $      | (364         | )      |   | $ | 16,675 |   |
|                                                         |   |        |    |   |     |   |   |         |   |   |         |   |   |   |   |   |
| Total assets                                                 |   | $           | 798,012 |   |     | $      | 37,464 |         |   | $      | -            |   |   | $ | 835,476 |   |
| Additions to property and equipment                          |   | $           | 55,094  |   |     | $      | 3,558  |         |   | $      | -            |   |   | $ | 58,652 |   |
|            |   |        |    |   |     |   |   |         |   |   |         |   |   |   |   |   |

----

| 13. | Commitments |
|-----|-------------|

| 14. | Subsequent Events |
|-----|-------------------|

----

Item 

----

|   | • | commodity price volatility; |
|--------|---------|-----------------------------|

|   | • | domestic and worldwide economic conditions; |
|--------|---------|---------------------------------------------|

|   | • | the availability of capital on economic terms to fund our capital expenditures and acquisitions; |
|--------|---------|--------------------------------------------------------------------------------------------------|

|   | • | our level of indebtedness; |
|--------|---------|----------------------------|

|   | • | the impact of the past or future economic recessions on our business operations, financial condition and ability to raise capital; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------|

|   | • | declines in the value of our oil and gas properties resulting in a decrease in our borrowing base under our credit facility and impairments; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the ability of financial counterparties to perform or fulfill their obligations under existing agreements; |
|--------|---------|------------------------------------------------------------------------------------------------------------|

|   | • | the uncertainty inherent in estimating proved oil and gas reserves and in projecting future rates of production and timing of development expenditures; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | drilling and other operating risks; |
|--------|---------|-------------------------------------|

|   | • | hurricanes and other weather conditions; |
|--------|---------|------------------------------------------|

|   | • | lack of availability of goods and services; |
|--------|---------|---------------------------------------------|

|   | • | regulatory and environmental risks associated with drilling and production activities; |
|--------|---------|----------------------------------------------------------------------------------------|

|   | • | the adverse effects of changes in applicable tax, environmental and other regulatory legislation; and |
|--------|---------|-------------------------------------------------------------------------------------------------------|

|   | • | the other risks described in our Form 10-K for the year ended December 31, 2010 and in this Form 10-Q. |
|--------|---------|--------------------------------------------------------------------------------------------------------|

----

| ·   | Our oil and gas sales increased $15.9 million, or 20%, from 2010.  Price variances accounted for an increase of $10.7 million while, production variances accounted for the remaining $5.2 million increase. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our combined oil and gas production for the first quarter of 2011 was 2% lower on a barrel of oil equivalent (“BOE”) basis than in the comparable period in 2010.  Our oil production increased 20% compared to 2010 while gas production declined 37%.  On a comparable basis, after giving effect to the sale of properties in North Louisiana in June 2010, total oil and gas production in 2011 (on a BOE basis) was 9% higher than 2010. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In March 2011, we issued $300 million of aggregate principal amount of 7.75% Senior Notes due 2019 (“2019 Senior Notes”) and redeemed $143.2 million in aggregate principal amount of 73⁄4% Senior Notes due 2013 (“2013 Senior Notes”).  We recorded a $4.6 million loss on early extinguishment of long-term debt during the first quarter of 2011. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We recorded a gain of $13.2 million in the first quarter of 2011 on the sale of our two 2,000 horsepower rigs and related equipment for total consideration of $22 million, consisting of $11 million cash and a promissory note of $11 million. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We recorded a $46.3 million net loss on derivatives in the first quarter of 2011, consisting of a $44.6 million non-cash loss for changes in mark-to-market valuations and a $1.7 million realized loss on settled contracts.  For fiscal 2010, we reported a $10.3 million net gain on derivatives consisting of an $8.6 million non-cash gain for changes in mark-to-market valuations and a $1.7 million realized gain on settled contracts.  Since we do not presently designate our derivatives as cash flow hedges under applicable accounting standards, we recognize the full effect of changing prices on mark-to-market valuations as a current charge or credit to our results of operations. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Production costs (excluding production taxes) increased 18% or $3 million for the first quarter of 2011 compared to the first quarter of 2010 due to a combination of more producing wells and overall price increases from certain vendors for field services. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Through our subsidiary, Desta Drilling, we own and operate 12 drilling rigs which provide us with increased operating efficiencies and cost control. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In March 2011, we entered into an agreement with Chesapeake Exploration, L.L.C. (“Chesapeake”) where we can earn a 75% interest in leases held by Chesapeake under approximately 75,000 net acres in southern Reeves County, Texas.  We have a one-year commitment to drill 20 wells prior to March 1, 2012.  See discussion below “Wolfbone”. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Three Months Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | March 31,          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2011               |   |   | 2010 |   |
| Oil and Gas Production Data:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               |   |   |   |   |
| Oil (MBbls)                                                                                                        |   |               | 899    |   |   |   | 752 |   |
| Gas (MMcf)                                                                                                         |   |               | 2,113  |   |   |   | 3,328 |   |
| Natural gas liquids (MBbls)                                                                                        |   |               | 83     |   |   |   | 57 |   |
| Total (MBOE)                                                                                                       |   |               | 1,334  |   |   |   | 1,364 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |               |   |   |   |   |   |   |
| Average Realized Prices (a):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               |   |   |   |   |   |   |
| Oil ($/Bbl)                                                                                                        |   | $                  | 88.93  |   |   | $ | 76.00 |   |
| Gas ($/Mcf)                                                                                                        |   | $                  | 5.24   |   |   | $ | 5.76 |   |
| Natural gas liquids ($/Bbl)                                                                                        |   | $                  | 48.34  |   |   | $ | 46.18 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |               |   |   |   |   |   |   |
| Gain (Loss) on Settled Derivative Contracts (a):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               |   |   |   |   |   |   |
| ($ in thousands, except per unit)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |               |   |   |   |   |   |   |
| Oil:       Net realized loss                                                                                       |   | $                  | (6,778 | ) |   | $ | (1,621 | ) |
|    Per unit produced ($/Bbl)                                                                                                                |   | $                  | (7.54  | ) |   | $ | (2.16 | ) |
| Gas:     Net realized gain                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                  | 5,060  |   |   | $ | 3,320 |   |
|        Per unit produced ($/Mcf)                                                                                   |   | $                  | 2.39   |   |   | $ | 1.00 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |               |   |   |   |   |   |   |
| Average Daily Production:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |               |   |   |   |   |   |   |
| Oil (Bbls):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |               |   |   |   |   |   |   |
| Permian Basin                                                                                                                                         |   |               | 6,177  |   |   |   | 4,909 |   |
| Austin Chalk/Eagle Ford Shale                                                                                                                         |   |               | 3,329  |   |   |   | 2,595 |   |
| South Louisiana                                                                                                                                       |   |               | 414    |   |   |   | 627 |   |
| Other(b)                                                                                                                                              |   |               | 69     |   |   |   | 225 |   |
| Total                                                                                                                                                                               |   |               | 9,989  |   |   |   | 8,356 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |               |   |   |   |   |   |   |
| Gas (Mcf):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |               |   |   |   |   |   |   |
| Permian Basin                                                                                                                                         |   |               | 13,920 |   |   |   | 13,911 |   |
| Giddings Area:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |   |   |   |   |   |   |
| Austin Chalk/Eagle Ford Shale                                                                                                                                        |   |               | 1,940  |   |   |   | 2,531 |   |
| Cotton Valley Reef Complex                                                                                                                                           |   |               | 2,953  |   |   |   | 3,529 |   |
| South Louisiana                                                                                                                                       |   |               | 3,149  |   |   |   | 7,513 |   |
| Other(b)                                                                                                                                              |   |               | 1,516  |   |   |   | 9,494 |   |
| Total                                                                                                                                                                               |   |               | 23,478 |   |   |   | 36,978 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |               |   |   |   |   |   |   |
| Natural Gas Liquids (Bbls):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |               |   |   |   |   |   |   |
| Permian Basin                                                                                                                                         |   |               | 618    |   |   |   | 272 |   |
| Austin Chalk/Eagle Ford Shale                                                                                                                         |   |               | 226    |   |   |   | 271 |   |
| South Louisiana                                                                                                                                       |   |               | 44     |   |   |   | 79 |   |
| Other(b)                                                                                                                                              |   |               | 34     |   |   |   | 11 |   |
| Total                                                                                                                                                                               |   |               | 922    |   |   |   | 633 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Three Months Ended |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | March 31,          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2011               |   |   | 2010 |
| Exploration Costs (in thousands):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |               |   |   |   |
| Abandonment and impairment costs:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |               |   |   |   |
| South Louisiana                                                                                                                                                          |   | $                  | 532 |   |   | $ | - |   |
| Permian Basin                                                                                                                                                            |   |               | - |   |   |   | 13 |   |
| Deep Bossier                                                                                                                                                             |   |               | - |   |   |   | 1,513 |   |
| Other                                                                                                                                                                    |   |               | 345 |   |   |   | 1,352 |   |
| Total                                                                                                                                                                                                  |   |               | 877 |   |   |   | 2,878 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               |   |   |   |   |   |   |   |
| Seismic and other                                                                                                                     |   |               | 1,278 |   |   |   | 1,660 |   |
| Total exploration costs                                                                                                                                                                                |   | $                  | 2,155 |   |   | $ | 4,538 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               |   |   |   |   |   |   |   |
| Depreciation, Depletion and Amortization (in thousands):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               |   |   |   |   |   |   |   |
| Oil and gas depletion                                                                                                                 |   | $                  | 23,291 |   |   | $ | 24,589 |   |   |
| Contract drilling depreciation                                                                                                        |   |               | 260 |   |   |   | 852 |   |   |
| Other depreciation                                                                                                                    |   |               | 193 |   |   |   | 171 |   |   |
| Total DD&A                                                                                                                                                                                         |   | $                  | 23,744 |   |   | $ | 25,612 |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               |   |   |   |   |   |   |   |
| Oil and Gas Costs ($/BOE Produced):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |               |   |   |   |   |   |   |   |
| Production costs                                                                                                                      |   | $                  | 18.61 |   |   | $ | 15.34 |   |   |
| Production costs (excluding production taxes)                                                                                         |   | $                  | 14.67 |   |   | $ | 12.18 |   |   |
| Oil and gas depletion                                                                                                                 |   | $                  | 17.46 |   |   | $ | 18.03 |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               |   |   |   |   |   |   |   |
| General and Administrative Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               |   |   |   |   |   |   |   |
| Excluding non-cash employee compensation                                                                                              |   | $                  | 5,098 |   |   | $ | 4,214 |   |   |
| Non-cash employee compensation(c)                                                                                                     |   |               | 7,401 |   |   |   | 2,010 |   |   |
| Total                                                                                                                                                                                                  |   | $                  | 12,499 |   |   | $ | 6,224 |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               |   |   |   |   |   |   |   |
| Net Wells Drilled (d):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |   |   |   |   |   |   |   |
| Exploratory Wells                                                                                                                     |   |               | 0.5 |   |   |   | 1.1 |   |   |
| Developmental Wells                                                                                                                   |   |               | 27.1 |   |   |   | 26.3 |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |               |
| (a)    No derivatives were designated as cash flow hedges in the table above. All gains or losses on settled derivatives were included in other income (expense) - gain (loss) on derivatives.                                                                                                                                                                                                                                                                                                                                                                       |   |               |
| (b)    Other for 2010 includes production attributable to sold properties in North Louisiana as follows: Oil 148, Gas 8,718, NGL 5.                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |               |
| (c)    Non-cash employee compensation relates to the Company’s non-equity award plans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |               |
| (d)    Excludes wells being drilled or completed at the end of each period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               |

----

----

----

|                                                                                                                                                                                                                                                                                                            |   | Actual             |   |   | Planned           |   |    |       |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|---------|------------|--------|
|                                                                                                                                                                                                                                                                                                            |   | Expenditures       |   |   | Expenditures      |   |    | 2011       |   |
|                                                                                                                                                                                                                                                                                                            |   | Three Months Ended |   |   | Year Ended        |   |    | Percentage |   |
|                                                                                                                                                                                                                                                                                                            |   | March 31, 2011     |   |   | December 31, 2011 |   |    | of Total   |   |
|                                                                                                                                                                                                                                                                                                            |   | (In thousands)     |   |   |              |   |
| Permian Basin                                                   |   | $                  | 68,500 |   |              | $      | 337,900 |       |   |   | 83 | % |
| Giddings Area:                                                                                                                                                                                                                                                                                                  |   |               |   |   |              |   |    |       |   |   |   |   |
| Austin Chalk/Eagle Ford Shale                                                                                                                                                                                                                                                                                   |   |               | 14,200 |   |              |   | 50,100  |       |   |   | 12 | % |
| Deep Bossier                                                              |   |               | 200    |   |              |   | 13,900  |       |   |   | 3 | % |
| South Louisiana                                                 |   |               | 1,800  |   |              |   | 4,200   |       |   |   | 1 | % |
| Other                                                           |   |               | 3,100  |   |              |   | 3,800   |       |   |   | 1 | % |
|                                                                                                                                                                                                                                                                                                            |   | $                  | 87,800 |   |              | $      | 409,900 |       |   |   | 100 | % |

----

|                                                                                  |   | March 31,      |    |   | December 31, |   |
|---------------------------------------------------------------------------------------|--------|----------------|---------|--------|--------------|--------|
|                                                                                  |   | 2011           |    |   | 2010         |   |
|                                                                                  |   | (In thousands) |    |
| Working capital (deficit) per GAAP                                                    |   | $              | (41,242 | )      |         | $      | (19,899 | ) |
| Add funds available under the revolving credit facility                               |   |           | 300,975 |   |         |   | 187,975 |   |
| Exclude fair value of derivatives classified as current assets or current liabilities |   |           | 36,175  |   |         |   | 7,224 |   |
| Working capital per loan covenant                                                     |   | $              | 295,908 |   |         | $      | 175,300 |   |
|                                                                                  |   |           |    |   |         |   |   |   |

----

----

Item 

----

|                                                                                                                                                                                                 |   | Oil    |      |   | Gas    |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                                                                                                                                                                 |   | Bbls   |      |   | Price  |   |   | MMBtu (a) |   |   | Price |   |
| Production Period:                                                                                                                                                                                   |   |   |      |   |   |   |   |   |   |   |   |   |
| 2nd Quarter 2011                               |   |   | 632,000   |   |   | $      | 83.71 |   |   |   | 1,650,000 |   |   | $ | 7.07 |   |
| 3rd Quarter 2011                               |   |   | 547,000   |   |   | $      | 83.78 |   |   |   | 1,560,000 |   |   | $ | 7.07 |   |
| 4th Quarter 2011                               |   |   | 540,000   |   |   | $      | 83.78 |   |   |   | 1,500,000 |   |   | $ | 7.07 |   |
| 2012                                           |   |   | 1,864,000 |   |   | $      | 93.65 |   |   |   | - |   |   | $ | - |   |
| 2013                                           |   |   | 480,000   |   |   | $      | 96.70 |   |   |   | - |   |   | $ | - |   |
|                                                                                                                                                                                                 |   |   | 4,063,000 |   |   |   |   |   |   |   | 4,710,000 |   |   |   |   |   |
|                                                                                                                                                         |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (a)     One MMBtu equals one Mcf at a Btu factor of 1,000.                                                                                                                  |   |

----

Item 

| ·   | management has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | this evaluation was conducted under the supervision and with the participation of our management, including our chief executive and chief financial officers; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | it is the conclusion of our chief executive and chief financial officers that these disclosure controls and procedures are effective in ensuring that information that is required to be disclosed by the Company in reports filed or submitted with the SEC is recorded, processed, summarized and reported within the time periods specified in the rules and forms established by the SEC. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Item 

Exhibits

| **3.1  |   | Second Restated Certificate of Incorporation of the Company, filed as Exhibit 3.1 to our Form S-2 Registration Statement, Commission File No. 333-13441                                                                                                                                                  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                     |
| **3.2  |   | Certificate of Amendment of Second Restated Certificate of Incorporation of Clayton Williams Energy, Inc., filed as Exhibit 3.1 to our Form 10-Q for the period ended September 30, 2000††                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                     |
| **3.3  |   | Corporate Bylaws of Clayton Williams Energy, Inc., as amended, filed as Exhibit 3.1 to our Current Report on Form 8-K filed with the Commission on March 14, 2008††                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                     |
| **4.1  |   | Indenture, dated July 20, 2005, among Clayton Williams Energy, Inc., the Subsidiary Guarantors and Wells Fargo Bank, National Association, as Trustee, filed as Exhibit 4.1 to our Current Report on Form 8-K filed with the Commission on July 22, 2005††                         |
|   |   |                                                                                                                                                                                                                                                                                                     |
| **4.2  |   | Indenture, dated March 16, 2011, among Clayton Williams Energy, Inc., the Guarantors named therein and Wells Fargo Bank, N.A., as Trustee, filed as Exhibit 4.1 to our Current Report on Form 8-K filed with the Commission on March 17, 2011††                                    |
|   |   |                                                                                                                                                                                                                                                                                                     |
| **4.3  |   | Registration Rights Agreement, dated as of March 16, 2011, by and among Clayton Williams Energy, Inc., the Guarantors named therein and the Initial Purchasers named therein, filed as Exhibit 4.2 to our Current Report on Form 8-K filed with the Commission on March 17, 2011†† |
|   |   |                                                                                                                                                                                                                                                                                                     |
| **4.4  |   | Registration Rights Agreement, dated as of April 29, 2011, by and among Clayton Williams Energy, Inc., the Guarantors named therein and the Initial Purchasers named therein, filed as Exhibit 4.2 to our Current Report on Form 8-K filed with the Commission on April 29, 2011†† |
|   |   |                                                                                                                                                                                                                                                                                                     |
| **10.1 |   | First Amendment to Second Amended and Restated Credit Agreement dated March 3, 2011, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on March 7, 2011††                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                     |
| *31.1  |   | Certification by the President and Chief Executive Officer of the Company pursuant to Rule 13a - 14(a) of the Securities Exchange Act of 1934                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                     |
| *31.2  |   | Certification by the Chief Financial Officer of the Company pursuant to Rule 13a - 14(a) of the Securities Exchange Act of 1934                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                     |

----

| ***32.1 |   | Certifications by the Chief Executive Officer and Chief Financial Officer of the Company pursuant to 18 U.S.C. § 1350       |
|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | * | Filed herewith |
|--------|---|----------------|

|   | ** | Incorporated by reference to the filing indicated |
|--------|----|---------------------------------------------------|

|   | *** | Furnished herewith |
|--------|-----|--------------------|

|   | † | Identifies an Exhibit that consists of or includes a management contract or compensatory plan or arrangement |
|--------|---------|--------------------------------------------------------------------------------------------------------------|

|   | †† | Filed under our Commission File No. 001-10924 |
|--------|----------------|----------------------------------------------------|

----

CLAYTON 

|   |   | CLAYTON WILLIAMS ENERGY, INC. |
|--------|--------|-------------------------------|

| Date:  | May 9, 2011 | By:    | /s/ Mel G. Riggs                   |
|--------|-------------|--------|------------------------------------|
|   |        |   | Mel G. Riggs                       |
|   |        |   | Executive Vice President and Chief |
|   |        |   |   Operating Officer      |

| Date:  | May 9, 2011 | By:    | /s/ Michael L. Pollard                    |
|--------|-------------|--------|-------------------------------------------|
|   |        |   | Michael L. Pollard                        |
|   |        |   | Senior Vice President and Chief Financial |
|   |        |   |   Officer                       |

----

| Exhibit No. |   | Description                                                                                                                                                                                                                                                                                              |
|-------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **3.1       |   | Second Restated Certificate of Incorporation of the Company, filed as Exhibit 3.1 to our Form S-2 Registration Statement, Commission File No. 333-13441                                                                                                                                                  |
|        |   |                                                                                                                                                                                                                                                                                                     |
| **3.2       |   | Certificate of Amendment of Second Restated Certificate of Incorporation of Clayton Williams Energy, Inc., filed as Exhibit 3.1 to our Form 10-Q for the period ended September 30, 2000††                                                                                                   |
|        |   |                                                                                                                                                                                                                                                                                                     |
| **3.3       |   | Corporate Bylaws of Clayton Williams Energy, Inc., as amended, filed as Exhibit 3.1 to our Current Report on Form 8-K filed with the Commission on March 14, 2008††                                                                                                                |
|        |   |                                                                                                                                                                                                                                                                                                     |
| **4.1       |   | Indenture, dated July 20, 2005, among Clayton Williams Energy, Inc., the Subsidiary Guarantors and Wells Fargo Bank, National Association, as Trustee, filed as Exhibit 4.1 to our Current Report on Form 8-K filed with the Commission on July 22, 2005††                         |
|        |   |                                                                                                                                                                                                                                                                                                     |
| **4.2       |   | Indenture, dated March 16, 2011, among Clayton Williams Energy, Inc., the Guarantors named therein and Wells Fargo Bank, N.A., as Trustee, filed as Exhibit 4.1 to our Current Report on Form 8-K filed with the Commission on March 17, 2011††                                    |
|        |   |                                                                                                                                                                                                                                                                                                     |
| **4.3       |   | Registration Rights Agreement, dated as of March 16, 2011, by and among Clayton Williams Energy, Inc., the Guarantors named therein and the Initial Purchasers named therein, filed as Exhibit 4.2 to our Current Report on Form 8-K filed with the Commission on March 17, 2011†† |
|        |   |                                                                                                                                                                                                                                                                                                     |
| **4.4       |   | Registration Rights Agreement, dated as of April 29, 2011, by and among Clayton Williams Energy, Inc., the Guarantors named therein and the Initial Purchasers named therein, filed as Exhibit 4.2 to our Current Report on Form 8-K filed with the Commission on April 29, 2011†† |
|        |   |                                                                                                                                                                                                                                                                                                     |
| **10.1      |   | First Amendment to Second Amended and Restated Credit Agreement dated March 3, 2011, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on March 7, 2011††                                                                                    |
|        |   |                                                                                                                                                                                                                                                                                                     |
| *31.1       |   | Certification by the President and Chief Executive Officer of the Company pursuant to Rule 13a - 14(a) of the Securities Exchange Act of 1934                                                                                                                                                  |
|        |   |                                                                                                                                                                                                                                                                                                     |
| *31.2       |   | Certification by the Chief Financial Officer of the Company pursuant to Rule 13a - 14(a) of the Securities Exchange Act of 1934                                                                                                                                                                |
|        |   |                                                                                                                                                                                                                                                                                                     |
| ***32.1     |   | Certifications by the Chief Executive Officer and Chief Financial Officer of the Company pursuant to 18 U.S.C. § 1350                                                                                                                                                                |

|   | * | Filed herewith |
|--------|---|----------------|

|   | ** | Incorporated by reference to the filing indicated |
|--------|----|---------------------------------------------------|

|   | *** | Furnished herewith |
|--------|-----|--------------------|

|   | † | Identifies an Exhibit that consists of or includes a management contract or compensatory plan or arrangement |
|--------|---------|--------------------------------------------------------------------------------------------------------------|

|   | †† | Filed under our Commission File No. 001-10924 |
|--------|----------------|----------------------------------------------------|