Exhibit 99.1

Cawley, Gillespie & Associates, Inc.



|                                |  |                                    |  |                                 
|------------------------------- |  | ---------------------------------- |  | --------------------------------
|                                |  | PETROLEUM CONSULTANTS              |  |                                 
|                                |  |                                   
|9601 AMBERGLEN BLVD., SUITE 117 |  | 306 WEST SEVENTH STREET, SUITE 302 |  | 1000 LOUISIANA STREET, SUITE 625
|AUSTIN, TEXAS 78729-1106        |  | FORT WORTH, TEXAS 76102-4987       |  | HOUSTON, TEXAS 77002-5008       
|512-249-7000                    |  | 817-336-2461                       |  | 713-651-9944                    
|FAX 512-233-2618                |  | FAX 817-877-3728                   |  | FAX 713-651-9980                
|                                |  | www.cgaus.com                      |  |                                 

March 10, 2008

Mr. Thomas Kaetzer

Baseline Oil & Gas Corp.

411 North Sam Houston Parkway

Suite 300

Houston, Texas 77060



| |  |     |  |                                                                                                                                           |  | 
| |  | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------- |  | 
| |  | Re: |  | Evaluation Summary Baseline Oil & Gas
Interests Proved & Probable Reserves Matagorda
and Stephens Counties, Texas As of December 31, 2007 |  | 

Dear Mr. Kaetzer:

As requested, we are submitting our estimates of proved and probable reserves and forecasts of economics attributable to the Baseline Oil & Gas (Baseline) interests in certain oil and gas
properties located in various fields in Matagorda and Stephens Counties, Texas. The results of this evaluation are presented in the accompanying tabulations, with a composite summary presented below:



|                     |  |     |  |        |         |                          |         |                              |         |                   |         |          |        
|-------------------- |  | --- |  | ------ | ------- | ------------------------ | ------- | ---------------------------- | ------- | ----------------- | ------- | -------- | -------
|                     |  |     |  | Proved |         | ProvedDevelopedProducing |         | ProvedDevelopedNon-Producing |         | ProvedUndeveloped |         | Probable
|Net Reserves         |  |     |  |        |         |                          |         |                              |         |                   |         |          |        
|Oil  Mbbl           |  |     |  |        | 6,240   |                          | 3,463   |                              | 739     |                   | 2,038   |          | 2,099  
|Gas  MMcf           |  |     |  |        | 32,297  |                          | 5,254   |                              | 11,536  |                   | 15,506  |          | 29,976 
|Net Revenue          |  |     |  |        |         |                          |         |                              |         |                   |         |          |        
|Oil  M$             |  |     |  |        | 588,921 |                          | 326,216 |                              | 69,922  |                   | 192,783 |          | 198,974
|Gas  M$             |  |     |  |        | 260,440 |                          | 41,282  |                              | 93,474  |                   | 125,683 |          | 243,164
|Severance Taxes      |  | M$ |  |        | 46,669  |                          | 18,133  |                              | 10,231  |                   | 18,305  |          | 27,397 
|Ad Valorem Taxes     |  | M$ |  |        | 22,024  |                          | 9,303   |                              | 4,340   |                   | 8,381   |          | 11,795 
|Operating Expenses   |  | M$ |  |        | 194,214 |                          | 139,608 |                              | 26,166  |                   | 28,441  |          | 45,135 
|Investments          |  | M$ |  |        | 43,468  |                          | 1,428   |                              | 5,320   |                   | 36,720  |          | 36,005 
|Net Operating Income |  | M$ |  |        | 542,986 |                          | 199,027 |                              | 117,341 |                   | 226,619 |          | 321,805
|Discounted @ 10%     |  | M$ |  |        | 283,680 |                          | 103,621 |                              | 43,467  |                   | 136,593 |          | 146,147

The discounted cash flow values shown above should not be construed to represent an estimate of
the fair market value by Cawley, Gillespie & Associates, Inc. (CG&A).



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Baseline Oil & Gas Interests

March 10, 2008

Page 2

Presentation

The report is divided into four major sections: Baseline Total Proved, Blessing Field Area, Stephens
County and Baseline Probable. Within the first three major sections are Total Proved (I-Proved), Proved Developed Producing (I-PDP), Proved Developed Non-Producing (I-PDNP) and Proved Undeveloped
(I-PUD). The last section presents the Total Probable (I-Probable) and Probable by area. Within each reserve category section are Tables I which present composite reserve estimates and economic forecasts for the particular
reserve category. Following the Tables I in each section are Summary Plots and Table II oneline summaries that present estimates of ultimate recovery, gross and net reserves, ownership, revenue, expenses, investments, net income and
discounted cash flow for the individual properties that make up the corresponding Table I. Individual lease or well reserves and economics tables follow the Tables II in the PDP, PDNP, PUD and Probable sections of the report.

For a more detailed explanation of the report layout, please refer to the Table of Contents following this letter. The data presented in the tables are
explained in page 1 of the Appendix. The methods employed in estimating reserves are described in page 2 of the Appendix.

Hydrocarbon Pricing

As requested, the year-end December 31, 2007 WTI Cushing spot oil price of $96.01/bbl and Henry Hub spot gas price of
$7.465/MMbtu were used. These prices were held constant.

Oil and gas price differentials were applied un-escalated on a per property basis
as provided and include adjustments for basis differential, transportation and/or crude quality and gravity corrections. Gas shrinkage and heating value as provided were applied separately as corrections to net gas sales and net gas price,
respectively.

Risking

Reserves
and economics were not risked for any of the properties in this report.

Expenses and Taxes

Operating expenses and capital expenditures were not escalated. Initial lease operating expenses were forecast on a per-well basis based on historical
expenses. Oil and gas severance tax values were determined by applying normal state severance tax rates. Ad Valorem taxes were 2.5% for Stephens County and 2.7% for Matagorda County.

Miscellaneous

An on-site field inspection of the properties has not been
performed. The mechanical operation or conditions of the wells and their related facilities have not been examined nor have the wells been tested by Cawley, Gillespie & Associates, Inc. Possible environmental liability related
to the properties has not been investigated nor considered. The salvage value of equipment at abandonment and the cost of plugging at abandonment have been included.

The proved reserve classifications used conform to the criteria of the Securities and Exchange Commission (SEC) as defined in page 3
of the Appendix. The inclusion of probable reserves does not conform to the criteria of the SEC. It is not intended that the probable section of the report be used for any purpose requiring such conformity. The reserves and economics
are predicated on regulatory agency classifications, rules, policies, laws, taxes and royalties in effect as noted herein. The possible effects of changes in legislation or other Federal or State restrictive actions have not been considered. All
reserve estimates represent our best judgment based on data available at the time of preparation, and assumptions as to future economic and regulatory conditions. It should be realized that the reserves actually recovered, the revenue derived
therefrom and the actual cost incurred could be more or less than the estimated amounts.



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Baseline Oil & Gas Interests

March 10, 2008

Page 3

The reserve estimates were based on interpretations of factual data furnished by Baseline. Oil and gas prices, pricing differentials, expense data, capital investments, plug and abandonment costs, tax values and
ownership interests were also supplied by Baseline and were accepted as furnished. To some extent, information from public records has been used to check and/or supplement these data. The basic engineering and geological data were subject to third
party reservations and qualifications. Nothing has come to our attention, however, that would cause us to believe that we are not justified in relying on such data.

This report was prepared for the exclusive use of Baseline Oil & Gas Corporation. Third parties should not rely on it without the written consent of the above and Cawley, Gillespie & Associates, Inc.
Our work papers and related data are available for inspection and review by authorized, interested parties.



Yours very truly,CAWLEY, GILLESPIE & ASSOCIATES, INC.LOGO