----

----

UNITED STATES

|   |   |                                                                                              |
|--------|--------|---------------------------------------------------------------------------------------------------|
| þ |   | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |

|   |   |                                                                                                |
|--------|--------|-----------------------------------------------------------------------------------------------------|
| o      |   | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF      1934 |

|                                 |   |                        |
|--------------------------------------|--------|-----------------------------|
| NEVADA                               |   | 20-1268553                  |
| (State      or other jurisdiction of |   | (I.R.S.      Employer       |
| incorporation      or organization)  |   | Identification      Number) |

|       |   |      |
|------------|--------|-----------|
| Yes þ |   | No      o |

| Large      accelerated filer      o |   |       Accelerated      filer      þ |   | Non-accelerated      filer      o |
|-------------------------------------|--------|------------------------------------------------------------------------|--------|-----------------------------------|

|   |   |           |
|--------|--------|----------------|
| Yes o  |   | No      þ |

----

----

|                                                                                                    |   | Page   |   |
|---------------------------------------------------------------------------------------------------------|--------|--------|--------|
| PART      I. Financial Information                                                                 |   |   |   |
|                                                                                                    |   |   |   |
| Item      1. Financial Statements (Unaudited):                                                          |   |   |   |
|                                                                                                    |   |   |   |
| Consolidated      Balance Sheets –                                                                |   |   |   |
| June      30, 2008 and December 31, 2007                                                                |   | 4      |   |
| Consolidated      Statements of Operations –                                                      |   |   |   |
| Three      Months and Six Months Ended June 30, 2008 and 2007                                           |   | 5      |   |
| Consolidated      Statement of Stockholders' Equity –                                             |   |   |   |
| Six      Months ended June 30, 2008                                                                     |   | 6      |   |
| Consolidated      Statements of Cash Flows –                                                      |   |   |   |
| Six      Months Ended June 30, 2008 and 2007                                                            |   | 7      |   |
| Notes      to Consolidated Financial Statements                                                         |   | 8      |   |
| Independent      Accountants' Review Report                                                             |   | 13     |   |
|                                                                                                    |   |   |   |
| Item      2. Management's Discussion and Analysis of Financial Condition and Results      of Operations |   | 14     |   |
|                                                                                                    |   |   |   |
| Item      3. Quantitative and Qualitative Disclosure About Market    Risk                               |   | 18     |   |
|                                                                                                    |   |   |   |
| Item      4. Controls and Procedures                                                                    |   | 18     |   |
|                                                                                                    |   |   |   |
| PART      II. Other Information                                                                         |   |   |   |
|                                                                                                    |   |   |   |
| Item      6. Exhibits                                                                                   |   | 19     |   |
|                                                                                                    |   |   |   |
| Awareness      Letter of Ernst & Young, LLP                                                         |   |   |   |
| Section      302 Certification of the Chief Executive Officer                                           |   |   |   |
| Section      302 Certification of the Chief Financial Officer                                           |   |   |   |
| Certification      of the Chief Executive Officer Pursuant to Section 906                               |   |   |   |
| Certification      of the Chief Financial Officer Pursuant to Section 906                               |   |   |   |
|                                                                                                    |   |   |   |

----

----

|                                                                                                                                                     |   | June      30,       |      |   | December      31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|-----------|--------|-------------------|--------|
|                                                                                                                                                     |   | 2008                |      |   | 2007              |   |
|                                                                                                                                                     |   |                |      |
|                                                                                                                                                     |   | (In      thousands) |      |
| ASSETS                                                                                                                                                   |
|                                                                                                                                                     |   |                |      |   |              |   |   |   |
| Cash      and Cash Equivalents                                                                                                                           |   | $                   | 25,374    |   |              | $      | 18,841 |   |
| Accounts      Receivable:                                                                                                                                |   |                |      |   |              |   |   |   |
| Oil      and gas sales                                                                                                                                   |   |                | 51,531    |   |              |   | 37,628 |   |
| Joint      interest operations                                                                                                                           |   |                | 5,087     |   |              |   | 4,382 |   |
| Prepaid      Expenses                                                                                                                                    |   |                | 1,102     |   |              |   | 5,451 |   |
| Total      current assets                                                                                                                                |   |                | 83,094    |   |              |   | 66,302 |   |
| Property      and Equipment:                                                                                                                             |   |                |      |   |              |   |   |   |
| Unevaluated      oil and gas properties                                                                                                                  |   |                | 26,421    |   |              |   | 13,076 |   |
| Proved      oil and gas properties                                                                                                                       |   |                | 332,038   |   |              |   | 328,270 |   |
| Wells      and related equipment and facilities                                                                                                          |   |                | 1,076,412 |   |              |   | 1,003,655 |   |
| Accumulated      depreciation, depletion and amortization                                                                                                |   |                | (514,830  | )      |              |   | (460,606 | ) |
| Net      oil and gas properties                                                                                                                          |   |                | 920,041   |   |              |   | 884,395 |   |
| Other      Property and Equipment, net of accumulated depreciation of $2,191      and$1,889      as of June 30, 2008 and December 31, 2007, respectively |   |                | 2,631     |   |              |   | 2,875 |   |
| Other      Assets                                                                                                                                        |   |                | 574       |   |              |   | 3,064 |   |
|                                                                                                                                                     |   | $                   | 1,006,340 |   |              | $      | 956,636 |   |
|                                                                                                                                                     |   |                |      |   |              |   |   |   |
|                                                                                                                                                     |   |                |      |   |              |   |   |   |

| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                                                               |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                    |
| Short-term      Debt                                                                                                                                                    |   | $ | 18,000 |   |   | $ | 2,588 |   |
| Accounts      Payable                                                                                                                                                   |   |   | 55,926 |   |   |   | 37,660 |   |
| Income      Taxes Payable                                                                                                                                               |   |   | 3,891 |   |   |   | 5,170 |   |
| Accrued      Expenses                                                                                                                                                   |   |   | 1,154 |   |   |   | 1,959 |   |
| Total      current liabilities                                                                                                                                     |   |   | 78,971 |   |   |   | 47,377 |   |
| Long-term      Debt                                                                                                                                                     |   |   | — |   |   |   | 80,000 |   |
| Deferred      Income Taxes Payable                                                                                                                                      |   |   | 198,034 |   |   |   | 181,667 |   |
| Reserve      for Future Abandonment Costs                                                                                                                               |   |   | 46,112 |   |   |   | 45,094 |   |
| Total liabilities                                                                                                                                                       |   |   | 323,117 |   |   |   | 354,138 |   |
| Commitments      and Contingencies                                                                                                                                      |   |   |   |   |   |   |   |   |
| Stockholders'      Equity:                                                                                                                                              |   |   |   |   |   |   |   |   |
| Common      stock – $0.01 par, 100,000,000 shares authorized, 66,540,000 and      66,389,500outstanding      at June 30, 2008 and December 31, 2007, respectively |   |   | 665 |   |   |   | 664 |   |
| Additional      paid-in capital                                                                                                                                         |   |   | 507,371 |   |   |   | 504,564 |   |
| Retained      earnings                                                                                                                                                  |   |   | 175,187 |   |   |   | 97,270 |   |
| Total      stockholders' equity                                                                                                                                         |   |   | 683,223 |   |   |   | 602,498 |   |
|                                                                                                                                                                    |   | $ | 1,006,340 |   |   | $ | 956,636 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |

----

CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                                                                                                                                                                                                                                                                                                                                      |   | Three      Months EndedJune      30,                      |    |   | Six      Months EndedJune      30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|---------|--------|------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                      |   | 2008                                                      |    |   | 2007                               |   |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                      |   |  (In      thousands, except per share amounts)  |    |
| Oil      and gas sales                                                                                                                                                                                                                                                                                                                                                    |   | $                                                         | 147,990 |   |                               | $      | 91,046 |   |   | $ | 261,256 |   |   | $ | 167,228 |   |
| Operating      expenses:                                                                                                                                                                                                                                                                                                                                                  |   |                                                      |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Oil      and gas operating                                                                                                                                                                                                                                                                                                                                                |   |                                                      | 20,241  |   |                               |   | 12,556 |   |   |   | 35,679 |   |   |   | 25,584 |   |
| Exploration                                                                                                                                                                                                                                                                                                                                                               |   |                                                      | 33,885  |   |                               |   | 17,988 |   |   |   | 40,302 |   |   |   | 28,723 |   |
| Depreciation,      depletion and amortization                                                                                                                                                                                                                                                                                                                             |   |                                                      | 27,537  |   |                               |   | 28,779 |   |   |   | 55,905 |   |   |   | 57,294 |   |
| General      and administrative, net                                                                                                                                                                                                                                                                                                                                      |   |                                                      | 4,667   |   |                               |   | 2,574 |   |   |   | 7,842 |   |   |   | 6,026 |   |
| Total      operating expenses                                                                                                                                                                                                                                                                                                                                             |   |                                                      | 86,330  |   |                               |   | 61,897 |   |   |   | 139,728 |   |   |   | 117,627 |   |
|                                                                                                                                                                                                                                                                                                                                                                      |   |                                                      |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Income      from operations                                                                                                                                                                                                                                                                                                                                               |   |                                                      | 61,660  |   |                               |   | 29,149 |   |   |   | 121,528 |   |   |   | 49,601 |   |
| Other      income (expenses):                                                                                                                                                                                                                                                                                                                                             |   |                                                      |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                                                                                                                                                                                                                                                                                                      |   |                                                      | 75      |   |                               |   | 138 |   |   |   | 158 |   |   |   | 243 |   |
| Other      income                                                                                                                                                                                                                                                                                                                                                         |   |                                                      | 115     |   |                               |   | 182 |   |   |   | 250 |   |   |   | 274 |   |
| Interest      expense                                                                                                                                                                                                                                                                                                                                                     |   |                                                      | (935    | )      |                               |   | (2,431 | ) |   |   | (2,298 | ) |   |   | (4,595 | ) |
| Total      other expenses                                                                                                                                                                                                                                                                                                                                                 |   |                                                      | (745    | )      |                               |   | (2,111 | ) |   |   | (1,890 | ) |   |   | (4,078 | ) |
|                                                                                                                                                                                                                                                                                                                                                                      |   |                                                      |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Income      before income taxes                                                                                                                                                                                                                                                                                                                                           |   |                                                      | 60,915  |   |                               |   | 27,038 |   |   |   | 119,638 |   |   |   | 45,523 |   |
| Provision      for income taxes                                                                                                                                                                                                                                                                                                                                           |   |                                                      | (21,147 | )      |                               |   | (9,607 | ) |   |   | (41,721 | ) |   |   | (16,219 | ) |
| Net      income                                                                                                                                                                                                                                                                                                                                                           |   | $                                                         | 39,768  |   |                               | $      | 17,431 |   |   | $ | 77,917 |   |   | $ | 29,304 |   |
|                                                                                                                                                                                                                                                                                                                                                                      |   |                                                      |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Net      income per share:                                                                                                                                                                                                                                                                                                                                                |   |                                                      |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                                                                                                                                                                                                                                     |   | $                                                         | 0.60    |   |                               | $      | 0.27 |   |   | $ | 1.18 |   |   | $ | 0.45 |   |
| Diluted                                                                                                                                                                                                                                                                                                                                                                   |   | $                                                         | 0.59    |   |                               | $      | 0.26 |   |   | $ | 1.15 |   |   | $ | 0.44 |   |
|                                                                                                                                                                                                                                                                                                                                                                      |   |                                                      |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average common and common stock equivalent      shares outstanding:                                                                                                                                                                                                                                                                                    |   |                                                      |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                              |   |                                                      | 65,825  |   |                               |   | 65,151 |   |   |   | 65,805 |   |   |   | 65,139 |   |
| Diluted                                                            |   |                                                      | 67,762  |   |                               |   | 67,091 |   |   |   | 67,675 |   |   |   | 66,955 |   |

----

|                                                  |   | Common      Stock(Shares)       |    |   | Common      Stock – Par Value |   |    | AdditionalPaid-in      Capital |   |   | RetainedEarnings |   |   | Total  |    |
|-------------------------------------------------------|--------|---------------------------------|---------|--------|-------------------------------------|--------|---------|--------------------------------|--------|--------|------------------|--------|--------|--------|---------|
|                                                  |   |  (In      thousands)  |    |
| Balance      at January 1, 2008                       |   |                            | 66,390  |   |                                | $      | 664     |                           |   | $      | 504,564          |   |   | $      | 97,270  |   |   | $ | 602,498 |   |
| Exercise      of stock options                        |   |                            | 292     |   |                                |   | 3       |                           |   |   | 1,877            |   |   |   | — |   |   |   | 1,880 |   |
| Stock-based      compensation                         |   |                            | — |   |                                |   | — |                           |   |   | 2,750            |   |   |   | — |   |   |   | 2,750 |   |
| Excess      tax benefit from stock-based compensation |   |                            | — |   |                                |   | — |                           |   |   | 1,188            |   |   |   | — |   |   |   | 1,188 |   |
| Repurchase      of common stock                       |   |                            | (142    | )      |                                |   | (2      | )                              |   |   | (3,008           | )      |   |   | — |   |   |   | (3,010 | ) |
| Net      income                                       |   |                            | — |   |                                |   | — |                           |   |   | —          |   |   |   | 77,917  |   |   |   | 77,917 |   |
| Balance      at June 30, 2008                         |   |                            | 66,540  |   |                                | $      | 665     |                           |   | $      | 507,371          |   |   | $      | 175,187 |   |   | $ | 683,223 |   |
|                                                  |   |                            |    |   |                                |   |    |                           |   |   |             |   |   |   |    |   |   |   |   |   |

----

CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                        |   | Six      Months Ended           |     |
|---------------------------------------------------------------------------------------------|--------|---------------------------------|----------|
|                                                                                        |   | June      30,                   |     |
|                                                                                        |   | 2008                            |     | 2007 |   |
|                                                                                        |   |  (In      thousands)  |     |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                  |   |                            |     |   |   |   |   |   |
| Net      income                                                                             |   | $                               | 77,917   |   |   | $ | 29,304 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |                            |     |   |   |   |   |   |
| Deferred      income taxes                                                                  |   |                            | 17,534   |   |   |   | 12,323 |   |
| Dry      holes and leasehold impairments                                                    |   |                            | 33,322   |   |   |   | 25,527 |   |
| Depreciation,      depletion and amortization                                               |   |                            | 55,905   |   |   |   | 57,294 |   |
| Stock-based      compensation                                                               |   |                            | 2,750    |   |   |   | 3,370 |   |
| Excess      tax benefit from stock-based compensation                                       |   |                            | (1,188   | ) |   |   | (49 | ) |
| Amortization      of loan costs                                                             |   |                            | 260      |   |   |   | 158 |   |
| Increase      in accounts receivable                                                        |   |                            | (14,608  | ) |   |   | (4,566 | ) |
| Decrease      (increase) in prepaid expenses                                                |   |                            | 1,761    |   |   |   | (2,621 | ) |
| Increase      (decrease) in accounts payable and accrued expenses                           |   |                            | 11,835   |   |   |   | (10,305 | ) |
| Net      cash provided by operating activities                                              |   |                            | 185,488  |   |   |   | 110,435 |   |
|                                                                                        |   |                            |     |   |   |   |   |   |
|                                                                                        |   |                            |     |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                  |   |                            |     |   |   |   |   |   |
| Capital      expenditures                                                                   |   |                            | (117,013 | ) |   |   | (123,476 | ) |
| Net      cash used for investing activities                                                 |   |                            | (117,013 | ) |   |   | (123,476 | ) |
|                                                                                        |   |                            |     |   |   |   |   |   |
|                                                                                        |   |                            |     |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                  |   |                            |     |   |   |   |   |   |
| Borrowings                                                                                  |   |                            | —  |   |   |   | 32,000 |   |
| Principal      payments on debt                                                             |   |                            | (62,000  | ) |   |   | (7,000 | ) |
| Repurchase      of common stock                                                             |   |                            | (3,010   | ) |   |   | — |   |
| Excess      tax benefit from stock-based compensation                                       |   |                            | 1,188    |   |   |   | 49 |   |
| Proceeds      from issuance of common stock                                                 |   |                            | 1,880    |   |   |   | 309 |   |
| Debt      issuance costs                                                                    |   |                            | —  |   |   |   | (89 | ) |
| Net      cash provided by (used for) financing activities                                   |   |                            | (61,942  | ) |   |   | 25,269 |   |
|                                                                                        |   |                            |     |   |   |   |   |   |
| Net      increase in cash and cash equivalents                                              |   |                            | 6,533    |   |   |   | 12,228 |   |
| Cash      and cash equivalents, beginning of period                                         |   |                            | 18,841   |   |   |   | 9,487 |   |
| Cash      and cash equivalents at end of period                                             |   | $                               | 25,374   |   |   | $ | 21,715 |   |

----

|                                                          |   | Six      Months Ended |               |
|---------------------------------------------------------------|--------|-----------------------|--------------------|
|                                                          |   | June      30,         |               |
| 2008                                                          |   |                  | 2007               |   |
|                                                          |   | (In      thousands)   |               |
| Future      abandonment liability – beginning of period |   | $                     | 45,094   |   |   | $ | 48,064   |   |
| Accretion      expense                                        |   |                  | 1,379    |   |   |   | 1,513   |   |
| New wells      drilled                                   |   |                  | 611      |   |   |   | 554   |   |
| Liabilities      settled                                      |   |                  | (972     | ) |   |   | —   |   |
| Future      abandonment liability – end of period       |   | $                     | 46,112   |   |   | $ | 50,131   |   |

----

|                            |   |   | Three      Months Ended |   |   | Six      Months Ended |   |
|---------------------------------|--------|--------|-------------------------|--------|--------|-----------------------|--------|
|                            |   |   | June      30,           |   |   | June      30,         |   |
|                            |   |   | 2008                    |   |   | 2007                  |   |   | 2008 |   |   | 2007 |   |
|                            |   |   | (In      thousands)     |
| Current      Provision          |   |   | $                       | 13,905 |   |                  | $      | 2,354 |   |   | $ | 24,187 |   |   | $ | 3,896 |   |
| Deferred      Provision         |   |   |                    | 7,242  |   |                  |   | 7,253 |   |   |   | 17,534 |   |   |   | 12,323 |   |
| Provision      for Income Taxes |   |   | $                       | 21,147 |   |                  | $      | 9,607 |   |   | $ | 41,721 |   |   | $ | 16,219 |   |

----

|                                                                           |   | Three      Months Ended June 30,              |    |
|--------------------------------------------------------------------------------|--------|-----------------------------------------------|---------|
|                                                                           |   | 2008                                          |    |   | 2007 |   |
|                                                                           |   |                                          |    |   |   |   |   |   |   | Per |   |   |   |   |   |   |   |   |   |   | Per |   |
|                                                                           |   | Income                                        |    |   | Shares |   |   | Share |   |   | Income |   |   | Shares |   |   | Share |   |
|                                                                           |   | (In      thousands, except per share amounts) |    |
| Basic Earnings Per      Share:                                                 |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                                     |   | $                                             | 39,768  |   |   |   | 65,825 |   |   | $ | 0.60 |   |   | $ | 17,431 |   |   |   | 65,151 |   |   | $ | 0.27 |   |
|                                                                           |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      Earnings Per Share:                                               |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                                     |   | $                                             | 39,768  |   |   |   | 65,825 |   |   |   |   |   |   | $ | 17,431 |   |   |   | 65,151 |   |   |   |   |   |
| Effect of Dilutive      Securities:                                            |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock Grants and      Options                                                  |   |                                          | — |   |   |   | 1,937 |   |   |   |   |   |   |   | — |   |   |   | 1,940 |   |   |   |   |   |
|                                                                           |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income Available to Common Stockholders With Assumed      Conversions |   | $                                             | 39,768  |   |   |   | 67,762 |   |   | $ | 0.59 |   |   | $ | 17,431 |   |   |   | 67,091 |   |   | $ | 0.26 |   |

|                                                                           |   | Six      Months Ended June 30,                |    |
|--------------------------------------------------------------------------------|--------|-----------------------------------------------|---------|
|                                                                           |   | 2008                                          |    |   | 2007 |   |
|                                                                           |   |                                          |    |   |   |   |   |   |   | Per |   |   |   |   |   |   |   |   |   |   | Per |   |
|                                                                           |   | Income                                        |    |   | Shares |   |   | Share |   |   | Income |   |   | Shares |   |   | Share |   |
|                                                                           |   | (In      thousands, except per share amounts) |    |
| Basic Earnings Per      Share:                                                 |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                                     |   | $                                             | 77,917  |   |   |   | 65,805 |   |   | $ | 1.18 |   |   | $ | 29,304 |   |   |   | 65,139 |   |   | $ | 0.45 |   |
|                                                                           |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      Earnings Per Share:                                               |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                                     |   | $                                             | 77,917  |   |   |   | 65,805 |   |   |   |   |   |   | $ | 29,304 |   |   |   | 65,139 |   |   |   |   |   |
| Effect of Dilutive      Securities:                                            |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock Grants and      Options                                                  |   |                                          | — |   |   |   | 1,870 |   |   |   |   |   |   |   | — |   |   |   | 1,816 |   |   |   |   |   |
|                                                                           |   |                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income Available to Common Stockholders With Assumed      Conversions |   | $                                             | 77,917  |   |   |   | 67,675 |   |   | $ | 1.15 |   |   | $ | 29,304 |   |   |   | 66,955 |   |   | $ | 0.44 |   |

|                                              |   | Three      Months Ended                   |   |   | Six      Months Ended |   |
|---------------------------------------------------|--------|-------------------------------------------|--------|--------|-----------------------|--------|
|                                              |   | June      30,                             |   |   | June      30,         |   |
|                                              |   | 2008                                      |   |   | 2007                  |   |   | 2008 |   |   | 2007 |   |
|                                              |   | (In      thousands except per share data) |
| Weighted      average anti-dilutive stock options |   |                                      | 29     |   |                  |   | 323 |   |   |   | 15 |   |   |   | 559 |   |
| Weighted      average exercise price              |   | $                                         | 23.36  |   |                  | $      | 16.56 |   |   | $ | 23.36 |   |   | $ | 16.03 |   |

----

|                     |   | Six      Months Ended |   |
|--------------------------|--------|-----------------------|--------|
|                     |   | June      30,         |   |
|                     |   | 2008                  |   |   | 2007 |   |
|                     |   | (In      thousands)   |   |
| Cash      Payments -     |   |                  |   |   |   |   |   |   |
| Interest      payments   |   | $                     | 2,039  |   |   | $ | 4,443 |   |
| Income      tax payments |   | $                     | 25,444 |   |   | $ | 6,973 |   |

----

----

----

ITEM 2: MANAGEMENT'S DISCUSSION ANDANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

|                                             |   |   | Three      Months Ended                        |    |   | Six      Months Ended |   |
|--------------------------------------------------|--------|--------|------------------------------------------------|---------|--------|-----------------------|--------|
|                                             |   |   | June      30,                                  |    |   | June      30,         |   |
|                                             |   |   | 2008                                           |    |   | 2007                  |   |   | 2008 |   |   | 2007 |   |
|                                             |   |   | ($      in thousands, except per unit amounts) |
| Net      Production Data:                        |   |   |                                           |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Oil      (Mbbls)                                 |   |   |                                           | 497     |   |                  |   | 417 |   |   |   | 924 |   |   |   | 785 |   |
| Natural      gas (Mmcf)                          |   |   |                                           | 7,467   |   |                  |   | 8,194 |   |   |   | 15,394 |   |   |   | 15,895 |   |
| Natural      gas equivalent (Mmcfe)              |   |   |                                           | 10,451  |   |                  |   | 10,696 |   |   |   | 20,937 |   |   |   | 20,605 |   |
|                                             |   |   |                                           |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Revenues:                                        |   |   |                                           |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Oil      sales                                   |   |   | $                                              | 61,974  |   |                  | $      | 27,638 |   |   | $ | 105,065 |   |   | $ | 49,106 |   |
| Gas      sales                                   |   |   |                                           | 86,016  |   |                  |   | 63,408 |   |   |   | 156,191 |   |   |   | 118,122 |   |
| Total oil and gas      sales                     |   |   | $                                              | 147,990 |   |                  | $      | 91,046 |   |   | $ | 261,256 |   |   | $ | 167,228 |   |
|                                             |   |   |                                           |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                        |   |   |                                           |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Oil      and gas operating(1)                    |   |   | $                                              | 20,241  |   |                  | $      | 12,556 |   |   | $ | 35,679 |   |   | $ | 25,584 |   |
| Exploration                                      |   |   | $                                              | 33,885  |   |                  | $      | 17,988 |   |   | $ | 40,302 |   |   | $ | 28,723 |   |
| Depreciation,      depletion and amortization    |   |   | $                                              | 27,537  |   |                  | $      | 28,779 |   |   | $ | 55,905 |   |   | $ | 57,294 |   |
|                                             |   |   |                                           |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Average      Sales Price:                        |   |   |                                           |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Oil      ($/Bbl)                                 |   |   | $                                              | 124.62  |   |                  | $      | 66.28 |   |   | $ | 113.72 |   |   | $ | 62.55 |   |
| Natural      gas ($/Mcf)                         |   |   | $                                              | 11.52   |   |                  | $      | 7.74 |   |   | $ | 10.15 |   |   | $ | 7.43 |   |
| Average      equivalent price ($/Mcfe)           |   |   | $                                              | 14.16   |   |                  | $      | 8.51 |   |   | $ | 12.48 |   |   | $ | 8.12 |   |
|                                             |   |   |                                           |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Expenses      ($ per Mcfe):                      |   |   |                                           |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Oil      and gas operating(1)                    |   |   | $                                              | 1.94    |   |                  | $      | 1.17 |   |   | $ | 1.70 |   |   | $ | 1.24 |   |
| Depreciation,      depletion and amortization(2) |   |   | $                                              | 2.62    |   |                  | $      | 2.68 |   |   | $ | 2.66 |   |   | $ | 2.77 |   |

|   |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|--------|-----------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (1)    | Includes      lease operating costs and production and ad valorem taxes.                      |   |   |   |   |   |   |   |   |   |
| (2)    | Represents      depreciation, depletion and amortization of oil and gas properties      only. |   |   |

----

----

----

|                                                                                                                                         |   | Six      Months EndedJune      30, |    |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|---------|
|                                                                                                                                         |   | 2008                               |    |   | 2007 |   |
|                                                                                                                                         |   | (In      thousands)                |    |
| Oil      and gas exploration and development:                                                                                                |   |                               |    |   |   |   |   |   |
| Leaseholdcosts                                                                                                                               |   | $                                  | 15,773  |   |   | $ | 350 |   |
| Development      drilling                                                                                                                    |   |                               | 17,109  |   |   |   | 22,360 |   |
| Exploratory      drilling                                                                                                                    |   |                               | 57,170  |   |   |   | 65,379 |   |
| Production      facilities                    |   |                               | 19,154  |   |   |   | 17,692 |   |
| Other    development                                                                                                                         |   |                               | 12,117  |   |   |   | 16,383 |   |
|                                                                                                                                         |   |                               | 121,323 |   |   |   | 122,164 |   |
| Other                                         |   |                               | 58      |   |   |   | 82 |   |
|                                                                                                                                         |   | $                                  | 121,381 |   |   | $ | 122,246 |   |

----

Other Matters

----

|             |   |        |
|------------------|--------|-------------|
| Exhibit      No. |   | Description |   |

|              |   |
|-------------------|--------|
|        15.1* |   | Awareness      Letter of Ernst & Young LLP. |   |
|              |   |   |   |
|        31.1* |   | Section      302 Certification of the Chief Executive Officer. |   |
|              |   |   |   |
|        31.2* |   | Section      302 Certification of the Chief Financial Officer. |   |
|              |   |   |   |
|        32.1* |   | Certification      for the Chief Executive Officer as required by Section 906 of the      Sarbanes-Oxley Act of 2002. |   |
|              |   |   |   |
|        32.2* |   | Certification      for the Chief Financial Officer as required by Section 906 of the      Sarbanes-Oxley Act of 2002. |   |

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

SIGNATURES

|                                 |   |                                                   |   |   |
|--------------------------------------|--------|--------------------------------------------------------|--------|--------|
|                                 |   | BOIS      d'ARC ENERGY, INC.                           |   |   |
|                                 |   |                                                   |   |   |
| Date:  August      8, 2008 |   | /s/GARY      W. BLACKIE                                |   |   |
|                                 |   | Gary W. Blackie, Chief      Executive Officer          |   |   |
|                                 |   | (Principal      Executive Officer)                     |   |   |
|                                 |   |                                                   |   |   |
|                                 |   |                                                   |   |   |
| Date:  August      8, 2008 |   | /s/ROLAND      O. BURNS                                |   |   |
|                                 |   | Roland O. Burns, Senior      Vice President,           |   |   |
|                                 |   | Chief      Financial Officer, Secretary, and Treasurer |   |   |
|                                 |   | (Principal      Financial and Accounting Officer)      |   |   |
|                                 |   |                                                   |   |   |