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**Consulting          Agreement**

Recitals

| A. | The                    Company is currently engaged in the business of exploration for                    and                    production of natural gas and oil. |
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| B. | The                    Company has recently experienced financial difficulties, has                    found it                    difficult to grow the company, and has lost key executives. The                    President                    and CEO (“CEO”) has determined it is in the best interest of the Company                    to obtain interim executive leadership for the                    Company. |
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| C. | Consultant                    has substantial expertise in executive leadership and consulting                    with and                    providing management advice to companies involved in the energy                    industry                    in connection with the formulation of business plans and strategies                    enabling growth and analysis of business and operating                    procedures. |
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| D. | Consultant                    has been providing consulting services to the Company since January                    31,                    2006 pursuant to a Consulting Agreement dated January 24, 2006                    (the “Prior                    Consulting Agreement”).  Although the Prior Consulting Agreement                    expired April 30, 2006, the Consultant has continued to provide                    consulting                    services to the Company under the terms of the Prior Consulting                    Agreement                    on a month-to-month basis through the date                    hereof. |
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| E. | Consultant                    and the Company have agreed on the terms and conditions pursuant                    to which                    Consultant will continue to be retained to provide consulting                    services to                    the CEO.  This agreement will document and govern the terms and                    conditions of Consultant’s provision of Consulting Services from May 1,                    2006 through December 31, 2007 as more fully set forth                    below. |
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| 1. | Appointment                    of Consultant |
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Appointment;          Reporting

understood          and agreed that Consultant is          appointed by, and shall report to, the Company’s CEO.

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Nature          of Consulting Services

|   | (a) | To                    review the Company’s current position, assist Company in selecting from                    among the available strategic options for stabilization/growth,                    and                    recommend a path forward; |
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|   | (b) | Support                    the Company’s efforts to expand by analyzing and negotiating, under the                    CEO’s direction, potential acquisitions using input data provided                    by the                    Company.  Provide Company with scenarios for the potential                    future performance of the prospects under the range of conditions                    defined                    by the Company; |
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|   | (c) | Generate                    structural options for making and financing proposed acquisitions                    based on                    the Company’s stated objectives and resources.  Discuss options                    with Company Senior management and document options                    selected.  Participate in negotiating such documents, under the                    CEO’s direction. |
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|   | (d) | Support                    the Company in the development of communications materials for                    use by                    Company Management in presenting to Funding Sources and sellers                    of assets                    of interest. |
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|   | (e) | Provide                    comments and advice to Company Senior Management on negotiating                    positions                    taken and written communications as requested by Company Senior                    management                    and negotiate on the company’s behalf, under the CEO’s                    direction. |
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|   | · | That                    the Consultant’s role is to provide advice to the Company’s management                    based on data provided and approved by the                    Company. |
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|   | · | The                    Company, its board of directors, and officers remain solely responsible                    for all business decisions in accordance with the Company’s bylaws and                    other applicable law. |
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|   | · | The                    Consultant does not accept the legal duties owed by officers                    and directors                    to the Company’s shareholders, and the Company has not retained the                    Consultant to discharge any such                    duties. |
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Services          NOT Provided

|   | (a) | Legal                    services, |
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|   | (b) | Valuation                    services |
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|   | (c) | Investment                    banking services |
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|   | (d) | Landman                    services |
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|   | (e) | Environmental                    services |
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|   | (f) | Geological/Geophysical                    services |
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|   | (g) | Engineering                    services |
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Reporting

Hours          of Consulting; Personnel; Additional          Consultants

Status          of          Consultant

| 2. | Term;                    Termination or Suspension |
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|   | (a) | Except                    as provided below, this Agreement, and the Services to be performed                    under                    it, commenced on May 1, 2006, and shall continue thereafter until                    terminated by either party as described below. |
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|   | (b) | The                    Company may terminate this Agreement at any time, but the Company                    shall                    continue to pay the Consultant for the Services through December                    1, 2007                    unless the termination is for cause.  The term “cause” shall                    mean: |
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|   | (i) | Consultant                    willful failure, neglect, refusal, or nonperformance, at any                    time, of                    Consultant's duties or obligations set forth in this Agreement                    or in                    Consultant’s Retention Bonus Agreement with the Company dated June 1, 2007                    (the “Retention Bonus Agreement”), or a willful breach by Consultant of                    this Agreement or the Retention Bonus                    Agreement; |
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|   | (ii) | Consultant                    conviction or no contest or guilty plea to or indictment for                    (or its                    procedural equivalent) a felony or crime involving moral turpitude,                    or                    Consultant or Consultant’s Employee’s guilty plea or no contest plea to a                    lesser included offense or crime in exchange for withdrawal of                    a felony                    indictment, felony charge by information, or a charged crime                    involving                    moral turpitude, whether the charge arises under federal, state                    or local                    law; |
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|   | (iii) | Consultant’s                    Employee’s death or disability rendering                    Consultant’s employee incapable of performing duties or obligations set                    forth in this Agreement or in the Retention Bonus Agreement for                    longer                    than 4 weeks; |
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|   | (iv) | Consultant                    appropriation (or attempted appropriation) of a material business                    opportunity of the Company or any of its affiliates, including,                    without                    limitation, attempting to secure or securing, any personal profit                    in                    connection with any transaction entered into on behalf of the                    Company or                    any of its affiliates; |
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|   | (v) | Consultant                    commission of an act of fraud, illegality, theft or willful misconduct                    toward the Company or any of its affiliates in the course of                    employment                    with the Company that relates to the Company's or any of its                    affiliates'                    assets, activities, operations or other                    employees; |
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|   | (vi) | Consultant’s                    repeated intoxication with alcohol or drugs while on the Company's                    premises during regular business hours;                    or |
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|   | (vii) | Consultant’s                    gross incompetence that has a material adverse impact on the                    Company's                    finances or operations or a pattern of gross incompetence of                    Consultant’s                    Employee’s, in each case as determined in good faith by the Board of                    Managers of the Company; |
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|   | (c) | After                    December 1, 2007, the Company may terminate this Agreement upon                    giving 30                    days' prior written notice thereof to                    Consultant. |
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|   | (d) | After                    December 1, 2007, and upon termination or cancellation of this                    Agreement,                    the Company shall have no liability to Consultant under this                    Agreement                    except for charges for Services performed by Consultant and accepted                    by                    the Company prior to receipt of notice of termination or cancellation                    and                    the 30 day notice period provided for in Paragraph 2(c).  The                    terms and conditions in this Agreement that by their sense and                    context are                    intended to survive the performance hereof by either or both                    parties                    hereunder shall so survive the termination, cancellation, or                    completion of                    performance of this Agreement. |
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|   | (e) | The                    Consultant may terminate this Agreement upon giving 30 days'                    prior written                    notice thereof to Company or for good reason.  The term “good                    reason” shall mean the Company’s breach of this Agreement or the Retention                    Bonus Agreement and the continuing breach by the Company after                    receiving                    written notice by the Consultant giving the Company at least                    15 days to                    cure such breach.  If this Agreement is terminated for good                    reason by Consultant prior to December 1, 2007, Company shall                    continue to                    pay the Consultant for the Services through December 1,                    2007. |
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|   | (f) | Upon                    termination or cancellation of this Agreement, the Consultant                    shall have                    no liability to Company under this agreement.  The terms and                    conditions in this Agreement that by their sense and context                    are intended                    to survive the performance hereof by either or both parties hereunder                    shall so survive the termination, cancellation, or completion                    of                    performance of this Agreement. |
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|   | (g) | Upon                    completion of Consultant's services hereunder or at such other                    time as may                    be requested by Company, Consultant shall return to Company all                    documents,                    records, notebooks, including copies thereof, whether prepared                    by                    Consultant or others, in Consultant's                    possession. |
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| 3. | Compensation;                    Expenses |
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Consulting          Fees

|   | (a) | Consultant                    acknowledges that he was previously paid, as compensation for                    the                    performance of the Services during the period from May 1, 2006                    through May                    31, 2007, the following amounts: |
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|   | (i) | The                    sum of $10,000 per month; and |
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|   | (ii) | The                    sum of 30,000 shares of the Company’s restricted Common Stock per                    month. |
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|   | (b) | As                    compensation for the performance of the Services beginning June                    1, 2007                    and continuing thereafter during the term of this Agreement,                    Consultant                    shall be paid the following amounts (with the Consultant acknowledging                    that he has previously been paid such amounts for services provided                    through August 31 2007): |
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|   | (i) | The                    sum of $12,500 per month (“Monthly Compensation”), paid in advance to                    Consultant for each month during the term of this Agreement,                    as                    compensation for the Services performed while working three days                    per week;                    and |
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|   | (ii) | The                    sum of $2,083 per day (twice the daily rate implied by the Monthly                    Compensation assuming 12 standard work days each month), payable                    on                    receipt of an invoice from Consultant, as compensation for the                    Services                    performed for each day worked beyond three days in any given                    week;                    and |
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|   | (iii) | 30,000                    shares of the Company’s restricted Common Stock per month, granted in                    advance to Consultant for each month during the term of this                    Agreement, as                    compensation for the Services                    performed. |
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Reimbursement          of Expenses

Withholding;          Benefits

| 4. | Confidentiality |
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Definitions

have the          meanings set forth below:

|   | (a) | "Confidential                    Information" shall mean and include any and all Information (as                    defined in                    this Agreement) of the following types: (i) business or financial                    information, financial statements, projections, business plans,                    or                    strategic or marketing plans, market studies, or analyses; (ii)                    cost and                    expense information, pricing and discount information, gross                    or net profit                    margins, or analyses; (iii) technical data, specifications, computer                    software (including both source code and object code or "executable"                    software), databases, and database designs; (iv) processes, transactions,                    and transaction procedures; (v) production data, shop drawings,                    engineering studies or reports, feasibility studies or manufacturing                    studies, parts lists, product specifications, identity of suppliers                    or                    terms of supply agreements or arrangements, production procedures,                    trade                    secrets, or secret or proprietary processes and formulae; (vi)                    marketing                    and customer data (including, but not limited to, identity or                    demographic                    analyses of customers), focus group reports, "shopping" reports,                    and                    marketing or advertising studies; (vii) terms, conditions, provisions,                    or                    obligations of any contracts or agreements to which the Company                    is a party                    or to which any of its assets are subject, or the identity of                    any Person                    who is a party to any contract or agreement with the Company;                    (viii)                    procedural or operational manuals, employee manuals, training                    manuals, or                    programs; (ix) site selections or review reports, site selection                    criteria,                    demographic analyses of or regarding any locations of retail                    outlets of                    the Company, the terms of any lease for any such retail outlet,                    or any                    summary thereof; (x) the identity of any employee of the Company,                    and the                    compensation, benefits, or terms of employment of any such employee;                    and                    (xi) such other information of or regarding the Company that                    the Company                    actually maintains as confidential or proprietary; provided,                    however, that                    such information shall be deemed confidential only to the extent                    that it                    (a) has not been previously disclosed to the public, or (b) is                    not                    ascertainable from public or published information or trade sources,                    or                    (c) is not subsequently publicly disclosed (other than by a violation                    of                    this Agreement).  Any Information that is marked or otherwise                    identified as "Confidential Information" at the time of Disclosure                    shall                    be presumed to be Confidential Information for the purposes of                    this                    Agreement. |
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|   | (b) | "Information"                    shall mean and include any data or information Disclosed  (as                    defined in this Agreement) in the form of (i) any written information,                    reports, documents, books, notebooks, memoranda, charts, or graphs;                    (ii)                    computer tapes, disks, CD-ROM, files, or other mechanical or                    electronic                    media; (iii) oral statements, representations, or presentations;                    (iv)                    audio, visual, or audio-visual materials or presentations, including                    audiotapes, videocassettes, laser discs, or CDs; and (v) any                    other                    documentary, written, magnetic, or other permanent or semi-permanent                    form. |
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|   | (c) | "Disclose"                    or "Disclosure" shall mean and include any delivery, transmittal,                    presentation, or representation of Information, by any Person                    to any other                    Person. |
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|   | (d) | "Person"                    shall mean and include any individual or natural person, corporation,                    trust, proprietorship, partnership, limited partnership, joint                    venture,                    limited liability company, limited liability partnership, or                    any other                    entity. |
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Agreement          to Provide Information

Agreement          to Maintain Confidentiality

Consultant          agrees to retain and maintain in strict          confidence, and to require its representatives, agents, employees, officers,          directors, shareholders, partners, principals, successors, assignees, members,          affiliates, consultants, or professional representatives and advisors to          retain          in confidence any and all Confidential Information of the          Company.  Consultant agrees that, without the prior express written          consent of the Company, Consultant shall not,:  (i) Disclose any such          Confidential Information to any other Person; (ii) use any such Confidential          Information for the benefit of any Person other than the Company; or (iii)          permit any Confidential Information to be Disclosed to or used by any Person          other than the Company.

Continuation          of Covenant; Obligations on          Termination

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| 5. | Indemnification. |
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**THIS INDEMNITY SHALL APPLY TO          MATTERS THAT ARISE OUT OF THE NEGLIGENCE, STRICT LIABILITY OR OTHER GUILT          OR          RESPONSIBILITY BY SUCH CONSULTANT OR CONSULTANT’S EMPLOYEE; PROVIDED, HOWEVER,          THAT THIS INDEMNITY SHALL NOT APPLY TO MATTERS ARISING OUT OF THE GROSS          NEGLIGENCE, WILLFUL MISCONDUCT, OR BREACH OF THIS AGREEMENT BY SUCH CONSULTANT          OR CONSULTANT’S EMPLOYEE.**

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Notices

|   | (a) | Notices                    to the Company: |
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|   | (b) | Notices                    to Consultant: |
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Entire          Agreement

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Assignment;          Binding          Effect

Severability

Construction

with the          plain meaning          of its language, and not for or against either party, and as a whole, giving          effect to all of the terms, conditions, and provisions of this          Agreement.

Governing          Law

Counterparts

Attorney          Fees

to interpret          or enforce this Agreement, the          prevailing party in such action shall recover that party's costs and expenses          incurred in connection with the suit or action, including attorney fees          and          costs of appeal, if any.

**The          Company further agrees that if Consultant should be liable for loss or          damage of          any kind, including any claim of loss or damage arising out of the failure          of          Consultant to discharge Consultant’s duties under this Agreement, other than          that arising out of the willful misconduct or gross negligence by Consultant          or          Consultant’s employee, Consultant’s liability will be limited to a sum equal to          $20,000.00 and that the provisions of this paragraph will apply if loss          or          damage, irrespective of cause or origin, results directly or indirectly,          to          persons or property from the performance of obligations imposed by this          Agreement, or from negligence, active or otherwise, of Consultant, its          agents          and employees. The Company must provide Consultant written notice of any          claim          of loss or damage, irrespective of cause or origin, including any claim          of loss          or damage arising out of the failure of Consultant to discharge Consultant’s          duties under this Agreement, within Four weeks of the act or omission of          Consultant that the Company contends was the cause of any such loss or          damage.  Any such claim for loss or damage on the part of the Company          against Consultant for which timely written notice is not provided as required          by this paragraph is expressly waived by the Company.**

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IN          WITNESS WHEREOF, the parties have executed this          Agreement as of the date first written above.

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