Unassociated Document


    
      
         

          
            

          

        

        Exhibit
          10.6

        

          AQUATIC
            CELLULOSE INTERNATIONAL CORP.

        

        


         

        

          ESTIMATED

          


          RESERVES
            AND FUTURE INCOME

          


          ATTRIBUTABLE
            TO CERTAIN

          


          LEASEHOLD
            INTERESTS

        

        


         

        


        

          As
            of

          


          January
            1, 2006

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        

          TABLE
            OF CONTENTS

          


          AQUATIC
            CELLULOSE INTERNATIONAL CORP.

          
             

          

        

        
          
            	
                    DISCUSSION

                  	 
	 	 
	
                    ONE
                      LINE SUMMARIES

                  	 
	
                     

                  	 
	
                    Summary
                      of Estimated 8/8ths Reserves

                  	
                    A

                  
	
                    Summary
                      of Net Reserves and Income Data

                  	
                    B

                  
	
                    Summary
                      of Net Reserves and Income Data - 

                  	 
	
                    Ranked
                      by Future Net Income Discounted at 10%

                  	
                    C

                  
	 	 
	
                    GRAND
                      SUMMARIES

                  	 
	 	 
	
                    Total
                      Proved Reserves

                  	
                    1

                  
	
                    Total
                      Proved Producing Reserves

                  	
                    2

                  
	
                    Total
                      Proved Undeveloped Reserves

                  	
                    3

                  
	
                    Total
                      Possible Undeveloped Reserves

                  	
                    4

                  
	 	 
	
                    LEASEHOLD
                      PROJECTIONS

                  	 
	 	 
	
                    Sargent
                      South Field, Matagorda Co, TX 

                  	
                    5-23

                  


          

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          


          April
            7, 2006

           

          Aquatic
            Cellulose International Corp.

          Suite
            5, 2504-43rd
            St.

          Vernon,
            British Columbia

          Canada
            V1T 6L1

          


          Attention
            Mr. Sheridan Westgarde

          


          Dear
            Mr.
            Westgarde:

          


          As
            requested, we have made an estimate of the reserves and future production
            and
            income attributable to certain leasehold interests of Aquatic Cellulose
            International Corp. as of January 1, 2006. This report is based on constant
            prices and costs as set forth in this letter. The subject properties
            are located
            in the Sargent South Field, Matagorda County, Texas. The results of this
            study
            are summarized below:

          


          


          Aquatic
            Cellulose International Corp.

          Estimated
            Net Reserves and Income Data

          Attributable
            to Certain Leasehold Interests

          As
            of January 1, 2006

           

          
            
              
                
                  	
                           

                        	 	
                           Proved
Producing

                        	 	
                           Proved
Undeveloped

                        	 	
                           Total
Proved

                        	
                           

                        
	
                          Remaining
                            Reserves

                        	 	 	 	 	 	 	 	 	 	 
	
                          Oil
                            / Condensate - MBbls

                        	 	 	
                          0

                        	 	 	
                          0

                        	 	 	
                          0

                        	 
	
                          Gas
                            - MMCF

                        	 	 	
                          122

                        	 	 	
                          205

                        	 	 	
                          328

                        	 
	 	 	 	 	 	 	 	 	 	 	 
	
                          Income
                            Data

                        	 	 	 	 	 	 	 	 	 	 
	
                          Future
                            Gross Revenue

                        	 	
                          $

                        	
                          947,892

                        	 	
                          $

                        	
                          1,591,741

                        	 	
                          $

                        	
                          2,539,633

                        	 
	
                          Deductions

                        	 	 	
                          109,800

                        	 	 	
                          529,073

                        	 	 	
                          638,873

                        	 
	
                          Future
                            Net Income

                        	 	
                          $

                        	
                          838,092

                        	 	
                          $

                        	
                          1,062,668

                        	 	
                          $

                        	
                          1,900,760

                        	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                          Discounted
                            FNI @ 10%

                        	 	
                          $

                        	
                          772,238

                        	 	
                          $

                        	
                          751,028

                        	 	
                          $

                        	
                          1,523,266

                        	 


                

                      

                
                  From
                    Landmark Graphics “Aries” (totals shown above may not add to the summary cash
                    flow tables due to rounding).

                

                      

                
                  
                    
                    

                  

                  
                    
                    

                    
                      

                    

                  

                  
                    
                    

                  

                

                

                  Aquatic
                    Cellulose International Corp. 
April 7, 2006 
Page
                    2  

                

              

            

          

        

        

          
            	
                     

                  	 	
                     Possible
Undeveloped

                  	 
	
                    Remaining
                      Reserves

                  	 	 	 	 
	
                    Oil
                      / Condensate - MBbls

                  	 	 	
                    0

                  	 
	
                    Gas
                      - MMCF

                  	 	 	
                    2,064

                  	 
	 	 	 	 	 
	
                    Income
                      Data

                  	 	 	 	 
	
                    Future
                      Gross Revenue

                  	 	
                    $

                  	
                    16,007,969

                  	 
	
                    Deductions

                  	 	 	
                    3,101,486

                  	 
	
                    Future
                      Net Income

                  	 	
                    $

                  	
                    12,906,482

                  	 
	 	 	 	 	 
	
                    Discounted
                      FNI @10%

                  	 	
                    $

                  	
                    5,611,746

                  	 


          

        

        

          The
            discounted future net income shown above is based on a discount rate
            of 10
            percent per annum compounded monthly. Future net income was discounted
            at five
            other discount rates, which are compounded monthly. These data are shown
            on each
            estimated projection of future production and income presented in a later
            section of this report and are summarized as follows:

          



          
            	
                    Discounted
                      Rate

                    Percent

                  	 	 	
                    Total
Proved

                  	 
	
                    15

                  	 	
                    $

                  	
                    1,384,722

                  	 
	
                    20

                  	 	
                    $

                  	
                    1,269,726

                  	 
	
                    25

                  	 	
                    $

                  	
                    1,173,243

                  	 
	
                    30

                  	 	
                    $

                  	
                    1,091,495

                  	 
	
                    35

                  	 	
                    $

                  	
                    1,021,603

                  	 


          

        

         

        
          These
            data are presented for your information and should not be construed as
            our
            estimate of fair market value.

          


          Liquid
            Hydrocarbon Volumes are expressed in thousands of barrels (MBbls). A
            barrel is
            equivalent to 42 United States gallons. Gas Volumes are expressed in
            millions of
            standard cubic feet (MMCF) at the contract temperature and pressure base
            of the
            state of Texas.

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

         

        
          Aquatic
            Cellulose International Corp. 
April 7, 2006

Page 3

        

      

    

     

    Reserve
      Definitions

    


    The
      proved reserves included herein conform to the definitions as set forth in
      the
      Securities and Exchange Commission's Regulation S-X Part 210.4-10 (a) as
      clarified by various Commission Staff Accounting Bulletins and to the
      definitions endorsed by the Society of Petroleum Engineers (SPE), the Society
      of
      Petroleum Evaluation Engineers (SPEE) and the World Petroleum Congresses (WPC).
      Definitions of these reserves are included immediately following
      this letter. 

     

    Estimate
      of Reserves

    


    Estimates
      of reserves were prepared by the use of geological and engineering methods
      generally accepted by the petroleum industry. The method or combination of
      methods utilized in the analysis of each reservoir was tempered by experience
      in
      the area, stage of development, quality and completeness of basic data, and
      production history.

    


    Where
      applicable, the volumetric method was employed for determining the original
      quantities of hydrocarbons in place. Structural and isopachous maps were
      furnished by New Century Energy Corp. and, after evaluation by us, were accepted
      as correct. These data were used in determining reservoir volumes. In some
      cases
      drainage areas were assigned based on analogy. Electrical logs, core analysis,
      and other available data were used to determine representative values for
      porosity and interstitial water saturation. Reserves based upon volumetric
      calculations or other methods such as analogy with offset wells are usually
      subject to greater revision than those based upon production and/or pressure
      performance data. Therefore, it may be necessary to revise these estimates
      up or
      down in the future as more reliable engineering data becomes
      available.

    


    Reserves
      of depletion-type reservoirs or those whose performance disclosed reliable
      decline in production-rate trends or other diagnostic characteristics were
      estimated by the application of appropriate decline curves or other performance
      relationships. In the analysis of production decline curves, reserves were
      established only to a calculated economic limit.

     

    Estimate
      of Future Producing Rates

    


    Initial
      production rates were based on the current rates for those reservoirs now on
      production. If no production decline was established, a decline profile
      analogous to similar wells was used. If a decline trend was established, this
      trend was used as the basis for estimating future rates.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Aquatic
      Cellulose International Corp.

April 7, 2006 
Page 4  

     

    Product
      Prices

    


    At
      the
      request of Aquatic Cellulose International Corp. this report was prepared using
      liquid hydrocarbon and gas prices in effect on December 31, 2005 and provided
      by
      New Century Energy Corp.

    


    Gas
      Prices

    


    For
      the
      current report, New Century Energy Corp. provided gas prices for each lease.
      The
      individual prices were held constant over the life of the reserves with no
      future price escalation due to inflation. The resulting overall average price
      for the gas reserves is $ 7.75 per MCF and accounts for 100.0 percent of the
      future gross income from all proved reserves.

    


    Income
      Data

    


    The
      future gross revenue is determined before deduction of production and ad valorem
      taxes. Future net income is determined after deduction of the normal costs
      of
      operating the wells, development costs, production taxes and ad valorem taxes.
      The operating costs, and development costs were held constant with no future
      price escalation due to inflation. The future net income is before deduction
      of
      state and federal income taxes and has not been adjusted for outstanding loans,
      which may exist. It does not include any adjustment for cash on hand or
      undistributed income.

    


    Neither
      the salvage value of lease equipment nor the cost to abandon the properties
      has
      been considered in this study.

    


    Table
      A
      presents a summary of the 8/8ths reserves, interests and prices for the subject
      properties by well. Table B presents a summary of net reserves and income data
      for the subject properties by well and Table C presents a summary of proved
      net
      reserves and income data ranked by 10% discounted future net income. Tables
      1
      through 4 are the Grand Summaries and Tables 5 through 23 are individual well
      cashflows alphabetically by well. Adjacent to each table, which represents
      our
      estimated projections for a particular property, is a production decline curve,
      which graphically illustrates past hydrocarbon production history and our
      estimated projection of future production.

    


    General

    


    The
      reserves included in this report are estimates only and should not be construed
      as being exact quantities. They may or may not be actually recovered and, if
      recovered, the revenues there from and the actual costs related thereto could
      be
      more or less than the estimated amounts. Because of governmental policies and
      uncertainties of supply and demand, the actual sales volumes and the prices
      received from the reserves, along with the costs incurred in recovering such
      reserves, may vary from those assumptions included in this report. Also,
      estimates of reserves may increase or decrease as a result of future
      operations.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Aquatic
      Cellulose International Corp.

April 7, 2006 
Page 5  

     

    We
      are
      qualified to perform engineering evaluations and do not claim expertise in
      accounting or legal matters. As in all aspects of oil and gas evaluation, there
      are uncertainties inherent in the interpretation of engineering data and,
      therefore, our conclusions necessarily represent only our best-informed
      professional judgments.

    


    The
      titles to the properties have not been examined by R. A. Lenser and Associates,
      Inc. nor has the actual degree or type of interest owned been independently
      confirmed. The data used in our estimates were obtained from New Century Energy
      Corp. and were accepted as accurate. For the purposes of this report, a field
      inspection of the properties was not performed nor was the mechanical operation
      or condition of the wells and their related facilities examined. We have not
      investigated possible environmen-tal liability related to the properties and,
      therefore, our estimates do not include any potential liability to restore
      and
      clean up any damages caused by past operations.

    


    We
      are
      independent petroleum engineers and geologists; we do not own an interest in
      these properties and are not employed on a contingent basis. Basic geologic
      and
      field performance data together with our engineering work sheets are maintained
      on file in our office and are available for review.

    


    Very
      truly yours,

    


    R.
      A. LENSER AND ASSOCIATES, INC.

    


    


    


    Ronald
      A. Lenser

    Registered
      Professional Engineer

    PE
      No. 30558

    


    RAL/hmg

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          	
                  R.A.
                    LENSER & ASSOCIATES, INC.

                  HOUSTON,
                    TEXAS

                	
                  TABLE
                    A

                


        

      

      

        AQUATIC
          CELLULOSE INTERNATIONAL CORP.

        SUMMARY
          OF 8/8ths RESERVES, INITIAL INTERESTS AND PRICES

        AS
          OF JANUARY 1, 2006

         

        
          
            	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                    OIL

                  	
                     

                  	
                    GAS

                  	
                     

                  	
                     

                  	
                     

                  
	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                    RESERVE
                      

                  	
                     

                  	
                    ---8/8ths
                      RESERVES---

                  	
                     

                  	
                    WORKING

                  	
                     

                  	
                    REVENUE

                  	
                     

                  	
                    PRICE

                  	
                     

                  	
                    PRICE

                  	
                     

                  	
                    TABLE

                  	
                     

                  
	
                    FIELD

                  	
                     

                  	
                    LEASE

                  	
                     

                  	
                    CATEGORY

                  	
                     

                  	
                    OIL,
                      MB

                  	
                     

                  	
                    GAS,
                      Mmcf

                  	
                     

                  	
                    INTEREST

                  	
                     

                  	
                    INTEREST

                  	
                     

                  	
                    $/BBL

                  	
                     

                  	
                    $/Mcf

                  	
                     

                  	
                    NO.

                  	
                     

                  
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    PROVED
                      RESERVES

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 02	 	 	
                    1PDP

                  	 	 	
                    0.000

                  	 	 	
                    345

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    15

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 10	 	 	
                    1PDP

                  	 	 	
                    0.000

                  	 	 	
                    231

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    16

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 10 - DEP	 	 	
                    1PDP

                  	 	 	
                    0.000

                  	 	 	
                    0

                  	 	 	
                    0.00

                  	
                    %

                  	 	
                    0.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    0.00

                  	 	 	
                    17

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 11	 	 	
                    1PDP

                  	 	 	
                    0.000

                  	 	 	
                    60

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    18

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 14	 	 	
                    1PDP

                  	 	 	
                    0.000

                  	 	 	
                    73

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    19

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 17	 	 	
                    1PDP

                  	 	 	
                    0.000

                  	 	 	
                    55

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    20

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 19	 	 	
                    1PDP

                  	 	 	
                    0.000

                  	 	 	
                    0

                  	 	 	
                    0.00

                  	
                    %

                  	 	
                    0.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    21

                  	 
	
                    PROVED
                      PRODUCING TOTAL

                  	 	 	
                     

                  	 	 	
                    0.000

                  	 	 	
                    764

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
                     

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 21	 	 	
                    3PUD

                  	 	 	
                    0.000

                  	 	 	
                    549

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    22

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 22	 	 	
                    3PUD

                  	 	 	
                    0.000

                  	 	 	
                    734

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    23

                  	 
	
                    PROVED
                      BEHIND PIPE TOTAL

                  	 	 	
                     

                  	 	 	
                    0.000

                  	 	 	
                    1,283

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
                     

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    GRAND
                      TOTAL PROVED RESERVES

                  	 	 	
                     

                  	 	 	
                    0.000

                  	 	 	
                    2,047

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
                     

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    POSSIBLE
                      RESERVES

                  	 	 	
                     

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
                     

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL LOC. 1 PSUD1	 	 	
                    9PSUD

                  	 	 	
                    0.000

                  	 	 	
                    3,545

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    9

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL LOC. 2 PSUD1	 	 	
                    9PSUD

                  	 	 	
                    0.000

                  	 	 	
                    3,411

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    10

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL LOC. 3 PSUD1	 	 	
                    9PSUD

                  	 	 	
                    0.000

                  	 	 	
                    1,772

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    11

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL LOC. 4 PSUD1	 	 	
                    9PSUD

                  	 	 	
                    0.000

                  	 	 	
                    1,212

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    12

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL LOC. 5 PSUD1	 	 	
                    9PSUD

                  	 	 	
                    0.000

                  	 	 	
                    2,377

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    13

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL LOC. 6 PSUD1	 	 	
                    9PSUD

                  	 	 	
                    0.000

                  	 	 	
                    586

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    14

                  	 
	
                    POSSIBLE
                      UNDEVELOPED TOTAL

                  	 	 	
                     

                  	 	 	
                    0.000

                  	 	 	
                    12,903

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
                     

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    GRAND
                      TOTAL POSSIBLE RESERVES

                  	 	 	
                     

                  	 	 	
                    0.000

                  	 	 	
                    12,903

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 


          

        

      

    


     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              R.A
                LENSER & ASSOCIATES, INC.

              HOUSTON,
                TEXAS

            	
              TABLE
                B

            


    

     

    AQUATIC
      CELLULOSE INTERNATIONAL CORP.


    SUMMARY
      OF NET RESERVES AND INCOME DATA

      AS
        OF JANUARY 1, 2006

       

      
        
          
            	
                     

                  	
                     

                  	
                    
                      RESERVE
CATEGORY

                    

                  	
                    -----------NET-----------

                  	
                    
                      TOTAL
REV,
                      M$

                  	
                    --TAXES,
                      M$--

                  	
                    --EXPENSES,
                      M$--

                  	
                    
                      INCOME
M$

                  	
                    
                      INCOME
@
                        10%, M$

                    

                  	
                    
                      TABLE
                        
NUMBER

                    

                  
	
                    FIELD

                  	
                    LEASE

                  	
                    OIL,
                      MB

                  	
                    GAS,
                      Mmcf

                  	
                    SEV

                  	
                    AD
                      VAL

                  	
                    OPC

                  	
                    COSTS

                  
	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                    PROVED
                      RESERVES

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      PRODUCING

                  	
                    HAMILL
&
HAMILL
                      NO. 02

                  	
                    0.000

                  	
                    55

                  	
                    427

                  	
                    0

                  	
                    16

                  	
                    11

                  	
                    0

                  	
                    400

                  	
                    379

                  	
                    15

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      PRODUCING

                  	
                    HAMILL
&
HAMILL
                      NO. 10

                  	
                    0.000

                  	
                    37

                  	
                    287

                  	
                    0

                  	
                    11

                  	
                    23

                  	
                    0

                  	
                    253

                  	
                    220

                  	
                    16

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      PRODUCING

                  	
                    HAMILL
&
HAMILL
                      NO. 14

                  	
                    0.000

                  	
                    12

                  	
                    91

                  	
                    0

                  	
                    3

                  	
                    10

                  	
                    0

                  	
                    77

                  	
                    72

                  	
                    19

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      PRODUCING

                  	
                    HAMILL
&
HAMILL
                      NO. 17

                  	
                    0.000

                  	
                    9

                  	
                    68

                  	
                    0

                  	
                    3

                  	
                    11

                  	
                    0

                  	
                    55

                  	
                    52

                  	
                    20

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      PRODUCING

                  	
                    HAMILL
&
HAMILL
                      NO. 11

                  	
                    0.000

                  	
                    10

                  	
                    75

                  	
                    0

                  	
                    3

                  	
                    8

                  	
                    10

                  	
                    54

                  	
                    50

                  	
                    18

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      PRODUCING

                  	
                    HAMILL
&
HAMILL
                      NO. 19

                  	
                    0.000

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    21

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      PRODUCING

                  	
                    HAMILL
&
HAMILL
                      NO. 10 - DEP

                  	
                    0.000

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    17

                  
	
                    PROVED
                      PRODUCING TOTAL

                  	
                     

                  	
                    0.000

                  	
                    122

                  	
                    948

                  	
                    0

                  	
                    36

                  	
                    64

                  	
                    10

                  	
                    838

                  	
                    772

                  	
                     

                  
	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      UNDEVELOPED

                  	
                    HAMILL
&
HAMILL
                      NO. 22

                  	
                    0.000

                  	
                    117

                  	
                    911

                  	
                    68

                  	
                    32

                  	
                    21

                  	
                    157

                  	
                    632

                  	
                    444

                  	
                    23

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      UNDEVELOPED

                  	
                    HAMILL
&
HAMILL
                      NO. 21

                  	
                    0.000

                  	
                    88

                  	
                    681

                  	
                    51

                  	
                    24

                  	
                    19

                  	
                    157

                  	
                    430

                  	
                    307

                  	
                    22

                  
	
                    PROVED
                      UNDEVELOPED TOTAL

                  	
                     

                  	
                    0.000

                  	
                    205

                  	
                    1,592

                  	
                    119

                  	
                    56

                  	
                    40

                  	
                    314

                  	
                    1,063

                  	
                    751

                  	
                     

                  
	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                    GRAND
                      TOTAL PROVED RESERVES

                  	
                     

                  	
                    0.000

                  	
                    328

                  	
                    2,540

                  	
                    119

                  	
                    92

                  	
                    104

                  	
                    324

                  	
                    1,901

                  	
                    1,523

                  	
                     

                  
	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                    POSSIBLE
                      RESERVES

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                    SARGENT
                      SOUTH

                  	
                    POSSIBLE
                      UNDEVELOPED

                  	
                    HAMILL
&
HAMILL
                      LOC. 1 PSUD1

                  	
                    0.000

                  	
                    567

                  	
                    4,398

                  	
                    330

                  	
                    154

                  	
                    102

                  	
                    171

                  	
                    3,641

                  	
                    1,365

                  	
                    9

                  
	
                    SARGENT
                      SOUTH

                  	
                    POSSIBLE
                      UNDEVELOPED

                  	
                    HAMILL
&
HAMILL
                      LOC. 2 PSUD1

                  	
                    0.000

                  	
                    546

                  	
                    4,232

                  	
                    317

                  	
                    148

                  	
                    98

                  	
                    171

                  	
                    3,497

                  	
                    1,313

                  	
                    10

                  
	
                    SARGENT
                      SOUTH

                  	
                    POSSIBLE
                      UNDEVELOPED

                  	
                    HAMILL
&
HAMILL
                      LOC. 5 PSUD1

                  	
                    0.000

                  	
                    380

                  	
                    2,949

                  	
                    221

                  	
                    103

                  	
                    68

                  	
                    164

                  	
                    2,392

                  	
                    1,033

                  	
                    13

                  
	
                    SARGENT
                      SOUTH

                  	
                    POSSIBLE
                      UNDEVELOPED

                  	
                    HAMILL
&
HAMILL
                      LOC. 3 PSUD1

                  	
                    0.000

                  	
                    284

                  	
                    2,198

                  	
                    165

                  	
                    77

                  	
                    51

                  	
                    157

                  	
                    1,749

                  	
                    921

                  	
                    11

                  
	
                    SARGENT
                      SOUTH

                  	
                    POSSIBLE
                      UNDEVELOPED

                  	
                    HAMILL
&
HAMILL
                      LOC. 4 PSUD1

                  	
                    0.000

                  	
                    194

                  	
                    1,504

                  	
                    113

                  	
                    53

                  	
                    35

                  	
                    157

                  	
                    1,146

                  	
                    668

                  	
                    12

                  
	
                    SARGENT
                      SOUTH

                  	
                    POSSIBLE
                      UNDEVELOPED

                  	
                    HAMILL
&
HAMILL
                      LOC. 6 PSUD1

                  	
                    0.000

                  	
                    94

                  	
                    727

                  	
                    55

                  	
                    25

                  	
                    17

                  	
                    150

                  	
                    480

                  	
                    312

                  	
                    14

                  
	
                    POSSIBLE
                      UNDEVELOPED RESERVES

                  	
                     

                  	
                    0.000

                  	
                    2,064

                  	
                    16,008

                  	
                    1,201

                  	
                    560

                  	
                    371

                  	
                    970

                  	
                    12,906

                  	
                    5,612

                  	
                     

                  
	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                    GRAND
                      TOTAL POSSIBLE RESERVES 

                  	
                     

                  	
                    0.000

                  	
                    2,064

                  	
                    16,008

                  	
                    1,201

                  	
                    560

                  	
                    371

                  	
                    970

                  	
                    12,906

                  	
                    5,612

                  	
                     

                  


          

        

      

    

    
      
      

    

     

    
       

      
        
          
          

        

        
          
          

          
            

            	
                    R.A
                      LENSER & ASSOCIATES, INC.

                    HOUSTON,
                      TEXAS

                  	
                    TABLE
                      C

                  


          

        

        
          
          

        

      

       

      AQUATIC
        CELLULOSE INTERNATIONAL CORP.

      SUMMARY
        OF NET RESERVES AND INCOME DATA

      RANKED
        BY FUTURE NET INCOME DISCOUNTED AT 10%

      AS
        OF JANUARY 1, 2006

       

    

    
      	 	 	 	 	
              RESERVE

            	
               

            	
              -----------NET-----------

            	
               

            	
              TOTAL

            	
               

            	
              --TAXES,
                M$--

            	
               

            	
              --EXPENSES,
                M$--

            	
               

            	
              INCOME

            	
               

            	
              INCOME

            	
               

            	
              TABLE
                

            	 
	
              FIELD

            	 	
              LEASE

            	
               

            	
              CATEGORY

            	
               

            	
              OIL,
                MB

            	
               

            	
              GAS,
                Mmcf

            	
               

            	
              REV,
                M$

            	
               

            	
              SEV

            	
               

            	
              AD
                VAL

            	
               

            	
              OPC

            	
               

            	
              COSTS

            	
               

            	
              M$

            	
               

            	
              @
                10%, M$

            	
               

            	
              NUMBER

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              PROVED
                RESERVES

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 22	 	PROVED
              UNDEVELOPED	 	 	
              0.000

            	 	 	
              117

            	 	 	
              911

            	 	 	
              68

            	 	 	
              32

            	 	 	
              21

            	 	 	
              157

            	 	 	
              632

            	 	 	
              444

            	 	 	
              23

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 02	 	PROVED
              PRODUCING	 	 	
              0.000

            	 	 	
              55

            	 	 	
              427

            	 	 	
              0

            	 	 	
              16

            	 	 	
              11

            	 	 	
              0

            	 	 	
              400

            	 	 	
              379

            	 	 	
              15

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 21	 	PROVED
              UNDEVELOPED	 	 	
              0.000

            	 	 	
              88

            	 	 	
              681

            	 	 	
              51

            	 	 	
              24

            	 	 	
              19

            	 	 	
              157

            	 	 	
              430

            	 	 	
              307

            	 	 	
              22

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 10	 	PROVED
              PRODUCING	 	 	
              0.000

            	 	 	
              37

            	 	 	
              287

            	 	 	
              0

            	 	 	
              11

            	 	 	
              23

            	 	 	
              0

            	 	 	
              253

            	 	 	
              220

            	 	 	
              16

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 14	 	PROVED
              PRODUCING	 	 	
              0.000

            	 	 	
              12

            	 	 	
              91

            	 	 	
              0

            	 	 	
              3

            	 	 	
              10

            	 	 	
              0

            	 	 	
              77

            	 	 	
              72

            	 	 	
              19

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 17	 	PROVED
              PRODUCING	 	 	
              0.000

            	 	 	
              9

            	 	 	
              68

            	 	 	
              0

            	 	 	
              3

            	 	 	
              11

            	 	 	
              0

            	 	 	
              55

            	 	 	
              52

            	 	 	
              20

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 11	 	PROVED
              PRODUCING	 	 	
              0.000

            	 	 	
              10

            	 	 	
              75

            	 	 	
              0

            	 	 	
              3

            	 	 	
              8

            	 	 	
              10

            	 	 	
              54

            	 	 	
              50

            	 	 	
              18

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 19	 	PROVED
              PRODUCING	 	 	
              0.000

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              21

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 10 - DEP	 	PROVED
              PRODUCING	 	 	
              0.000

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              17

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              GRAND
                TOTAL PROVED RESERVES

            	 	 	 	 	
              0.000

            	 	 	
              328

            	 	 	
              2,540

            	 	 	
              119

            	 	 	
              92

            	 	 	
              104

            	 	 	
              324

            	 	 	
              1,901

            	 	 	
              1,523

            	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              POSSIBLE
                RESERVES

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL LOC. 1 PSUD1	 	POSSIBLE
              UNDEVELOPED	 	 	
              0.000

            	 	 	
              567

            	 	 	
              4,398

            	 	 	
              330

            	 	 	
              154

            	 	 	
              102

            	 	 	
              171

            	 	 	
              3,641

            	 	 	
              1,365

            	 	 	
              9

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL LOC. 2 PSUD1	 	POSSIBLE
              UNDEVELOPED	 	 	
              0.000

            	 	 	
              546

            	 	 	
              4,232

            	 	 	
              317

            	 	 	
              148

            	 	 	
              98

            	 	 	
              171

            	 	 	
              3,497

            	 	 	
              1,313

            	 	 	
              10

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL LOC. 5 PSUD1	 	POSSIBLE
              UNDEVELOPED	 	 	
              0.000

            	 	 	
              380

            	 	 	
              2,949

            	 	 	
              221

            	 	 	
              103

            	 	 	
              68

            	 	 	
              164

            	 	 	
              2,392

            	 	 	
              1,033

            	 	 	
              13

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL LOC. 3 PSUD1	 	POSSIBLE
              UNDEVELOPED	 	 	
              0.000

            	 	 	
              284

            	 	 	
              2,198

            	 	 	
              165

            	 	 	
              77

            	 	 	
              51

            	 	 	
              157

            	 	 	
              1,749

            	 	 	
              921

            	 	 	
              11

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL LOC. 4 PSUD1	 	POSSIBLE
              UNDEVELOPED	 	 	
              0.000

            	 	 	
              194

            	 	 	
              1,504

            	 	 	
              113

            	 	 	
              53

            	 	 	
              35

            	 	 	
              157

            	 	 	
              1,146

            	 	 	
              668

            	 	 	
              12

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL LOC. 6 PSUD1	 	POSSIBLE
              UNDEVELOPED	 	 	
              0.000

            	 	 	
              94

            	 	 	
              727

            	 	 	
              55

            	 	 	
              25

            	 	 	
              17

            	 	 	
              150

            	 	 	
              480

            	 	 	
              312

            	 	 	
              14

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              GRAND
                TOTAL POSSIBLE RESERVES

            	 	 	 	 	
              0.000

            	 	 	
              2,064

            	 	 	
              16,008

            	 	 	
              1,201

            	 	 	
              560

            	 	 	
              371

            	 	 	
              970

            	 	 	
              12,906

            	 	 	
              5,612

            	 	 	 	 


    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   GRAND SUMMARY                                                                                      TABLE 1
   TOTAL PROVED RESERVES
                                                                                                    RESERVE TYPE
                                                                                                    TOTAL PROVED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000      1523.266
 FINAL                                                                                                   15.0000      1384.722
                                                                                                         20.0000      1269.726
                                                                                                         25.0000      1173.243
                                                                                                         30.0000      1091.495
                                                                                                         35.0000      1021.603

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      5.          0.000          0.000           506.          0.000          0.000            81.       0.00       7.75
 12-07      6.          0.000          0.000           488.          0.000          0.000            78.       0.00       7.75
 12-08      3.          0.000          0.000           344.          0.000          0.000            55.       0.00       7.75
 12-09      3.          0.000          0.000           309.          0.000          0.000            50.       0.00       7.75
 12-10      3.          0.000          0.000           321.          0.000          0.000            51.       0.00       7.75
 12-11      1.          0.000          0.000            78.          0.000          0.000            12.       0.00       7.75
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      4.          0.000          0.000          2047.          0.000          0.000           328.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      4.          0.000          0.000          2047.          0.000          0.000           328.       0.00       7.75

 Cumulative             0.000          0.000           312.
 Ultimate               0.000          0.000          2359.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.        627260.          0.     627260.               0.         23726.             603534.
 12-07             0.             0.        605683.          0.     605683.           29103.         21809.             554771.
 12-08             0.             0.        427207.          0.     427207.           27809.         15107.             384291.
 12-09             0.             0.        383885.          0.     383885.           26589.         13515.             343781.
 12-10             0.             0.        398849.          0.     398849.           28624.         14004.             356221.
 12-11             0.             0.         96748.          0.      96748.            7256.          3385.              86107.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.       2539633.          0.    2539633.          119381.         91546.            2328706.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.       2539633.          0.    2539633.          119381.         91546.            2328706.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06          24677.         10000.             0.             0.         34677.        568857.        568857.        546719.
 12-07          30115.        307000.             0.             0.        337115.        217656.        786513.        181853.
 12-08          16405.          7000.             0.             0.         23405.        360886.       1147400.        284591.
 12-09          14374.             0.             0.             0.         14374.        329408.       1476808.        236456.
 12-10          13976.             0.             0.             0.         13976.        342245.       1819053.        224510.
 12-11           4400.             0.             0.             0.          4400.         81707.       1900760.         49137.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T         103946.        324000.             0.             0.        427946.       1900760.       1900760.       1523266.
 After              0.             0.             0.             0.             0.             0.       1900760.             0.
 Total         103946.        324000.             0.             0.        427946.       1900760.       1900760.       1523266.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   GRAND SUMMARY                                                                                      TABLE 2
   PROVED PRODUCING RESERVES
                                                                                                    RESERVE TYPE
                                                                                                    PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000       772.238
 FINAL                                                                                                   15.0000       744.908
                                                                                                         20.0000       720.479
                                                                                                         25.0000       698.495
                                                                                                         30.0000       678.589
                                                                                                         35.0000       660.466

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      5.          0.000          0.000           506.          0.000          0.000            81.       0.00       7.75
 12-07      5.          0.000          0.000           175.          0.000          0.000            28.       0.00       7.75
 12-08      1.          0.000          0.000            45.          0.000          0.000             7.       0.00       7.75
 12-09      1.          0.000          0.000            24.          0.000          0.000             4.       0.00       7.75
 12-10      1.          0.000          0.000            14.          0.000          0.000             2.       0.00       7.75
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      3.          0.000          0.000           764.          0.000          0.000           122.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      3.          0.000          0.000           764.          0.000          0.000           122.       0.00       7.75

 Cumulative             0.000          0.000           312.
 Ultimate               0.000          0.000          1076.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.        627260.          0.     627260.               0.         23726.             603534.
 12-07             0.             0.        217649.          0.     217649.               0.          8233.             209416.
 12-08             0.             0.         56426.          0.      56426.               0.          2134.              54292.
 12-09             0.             0.         29365.          0.      29365.               0.          1111.              28255.
 12-10             0.             0.         17191.          0.      17191.               0.           650.              16541.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.        947892.          0.     947892.               0.         35854.             912038.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        947892.          0.     947892.               0.         35854.             912038.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06          24677.         10000.             0.             0.         34677.        568857.        568857.        546719.
 12-07          23315.             0.             0.             0.         23315.        186101.        754958.        162850.
 12-08           6805.             0.             0.             0.          6805.         47487.        802445.         37778.
 12-09           4774.             0.             0.             0.          4774.         23481.        825926.         16901.
 12-10           4376.             0.             0.             0.          4376.         12165.        838092.          7990.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          63946.         10000.             0.             0.         73946.        838092.        838092.        772238.
 After              0.             0.             0.             0.             0.             0.        838092.             0.
 Total          63946.         10000.             0.             0.         73946.        838092.        838092.        772238.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   GRAND SUMMARY                                                                                      TABLE 3
   PROVED UNDEVELOPED RESERVES
                                                                                                    RESERVE TYPE
                                                                                                    PROVED UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000       751.028
 FINAL                                                                                                   15.0000       639.814
                                                                                                         20.0000       549.246
                                                                                                         25.0000       474.748
                                                                                                         30.0000       412.905
                                                                                                         35.0000       361.137

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      1.          0.000          0.000           313.          0.000          0.000            50.       0.00       7.75
 12-08      2.          0.000          0.000           299.          0.000          0.000            48.       0.00       7.75
 12-09      2.          0.000          0.000           286.          0.000          0.000            46.       0.00       7.75
 12-10      2.          0.000          0.000           308.          0.000          0.000            49.       0.00       7.75
 12-11      1.          0.000          0.000            78.          0.000          0.000            12.       0.00       7.75
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000          1283.          0.000          0.000           205.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000          1283.          0.000          0.000           205.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000          1283.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.        388034.          0.     388034.           29103.         13577.             345355.
 12-08             0.             0.        370781.          0.     370781.           27809.         12973.             329999.
 12-09             0.             0.        354520.          0.     354520.           26589.         12404.             315527.
 12-10             0.             0.        381658.          0.     381658.           28624.         13353.             339680.
 12-11             0.             0.         96748.          0.      96748.            7256.          3385.              86107.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.       1591741.          0.    1591741.          119381.         55692.            1416668.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.       1591741.          0.    1591741.          119381.         55692.            1416668.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07           6800.        307000.             0.             0.        313800.         31555.         31555.         19003.
 12-08           9600.          7000.             0.             0.         16600.        313399.        344954.        246813.
 12-09           9600.             0.             0.             0.          9600.        305927.        650881.        219555.
 12-10           9600.             0.             0.             0.          9600.        330080.        980961.        216520.
 12-11           4400.             0.             0.             0.          4400.         81707.       1062668.         49137.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          40000.        314000.             0.             0.        354000.       1062668.       1062668.        751028.
 After              0.             0.             0.             0.             0.             0.       1062668.             0.
 Total          40000.        314000.             0.             0.        354000.       1062668.       1062668.        751028.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   GRAND SUMMARY                                                                                      TABLE 4
   POSSIBLE UNDEVELOPED RESERVES
                                                                                                    RESERVE TYPE
                                                                                                    POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000      5611.747
 FINAL                                                                                                   15.0000      4065.883
                                                                                                         20.0000      3075.665
                                                                                                         25.0000      2404.777
                                                                                                         30.0000      1929.294
                                                                                                         35.0000      1579.856

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      0.          0.000          0.000           143.          0.000          0.000            23.       0.00       7.75
 12-08      4.          0.000          0.000          1156.          0.000          0.000           185.       0.00       7.75
 12-09      6.          0.000          0.000          1398.          0.000          0.000           224.       0.00       7.75
 12-10      6.          0.000          0.000           945.          0.000          0.000           151.       0.00       7.75
 12-11      6.          0.000          0.000           641.          0.000          0.000           103.       0.00       7.75
 12-12      5.          0.000          0.000           456.          0.000          0.000            73.       0.00       7.75
 12-13      5.          0.000          0.000          1306.          0.000          0.000           209.       0.00       7.75
 12-14      5.          0.000          0.000          1051.          0.000          0.000           168.       0.00       7.75
 12-15      5.          0.000          0.000           694.          0.000          0.000           111.       0.00       7.75
 12-16      4.          0.000          0.000           456.          0.000          0.000            73.       0.00       7.75
 12-17      4.          0.000          0.000           419.          0.000          0.000            67.       0.00       7.75
 12-18      4.          0.000          0.000           657.          0.000          0.000           105.       0.00       7.75
 12-19      3.          0.000          0.000           720.          0.000          0.000           115.       0.00       7.75
 12-20      3.          0.000          0.000           502.          0.000          0.000            80.       0.00       7.75

 Sub-T      4.          0.000          0.000         10546.          0.000          0.000          1687.       0.00       7.75
 After      2.          0.000          0.000          2357.          0.000          0.000           377.       0.00       7.75
 Total      3.          0.000          0.000         12903.          0.000          0.000          2064.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000         12903.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.        177415.          0.     177415.           13306.          6207.             157902.
 12-08             0.             0.       1434799.          0.    1434799.          107610.         50201.            1276988.
 12-09             0.             0.       1734347.          0.    1734347.          130076.         60682.            1543589.
 12-10             0.             0.       1172870.          0.    1172870.           87965.         41037.            1043869.
 12-11             0.             0.        795829.          0.     795829.           59687.         27845.             708297.
 12-12             0.             0.        565409.          0.     565409.           42406.         19783.             503221.
 12-13             0.             0.       1619663.          0.    1619663.          121475.         56669.            1441519.
 12-14             0.             0.       1304490.          0.    1304490.           97837.         45642.            1161012.
 12-15             0.             0.        861400.          0.     861400.           64605.         30139.             766656.
 12-16             0.             0.        566093.          0.     566093.           42457.         19807.             503829.
 12-17             0.             0.        520302.          0.     520302.           39023.         18204.             463075.
 12-18             0.             0.        815236.          0.     815236.           61143.         28524.             725569.
 12-19             0.             0.        893604.          0.     893604.           67020.         31266.             795318.
 12-20             0.             0.        622487.          0.     622487.           46687.         21780.             554021.

 Sub-T             0.             0.      13083945.          0.   13083945.          981296.        457783.           11644866.
 After             0.             0.       2924024.          0.    2924024.          219302.        102306.            2602416.
 Total             0.             0.      16007969.          0.   16007969.         1200597.        560089.           14247282.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07           2000.        300000.             0.             0.        302000.       -144098.       -144098.       -122304.
 12-08          18400.        600000.             0.             0.        618400.        658589.        514490.        513874.
 12-09          28800.             0.             0.             0.         28800.       1514789.       2029280.       1088948.
 12-10          28800.             0.             0.             0.         28800.       1015069.       3044348.        663374.
 12-11          28800.         14000.             0.             0.         42800.        665497.       3709846.        395740.
 12-12          26000.         21000.             0.             0.         47000.        456221.       4166066.        245215.
 12-13          24000.             0.             0.             0.         24000.       1417519.       5583586.        692086.
 12-14          24000.             0.             0.             0.         24000.       1137012.       6720597.        507542.
 12-15          22400.             0.             0.             0.         22400.        744256.       7464854.        302247.
 12-16          19200.          7000.             0.             0.         26200.        477629.       7942482.        176184.
 12-17          19200.         14000.             0.             0.         33200.        429875.       8372358.        142989.
 12-18          18000.             0.             0.             0.         18000.        707569.       9079927.        213684.
 12-19          14400.             0.             0.             0.         14400.        780918.       9860845.        216384.
 12-20          14400.             0.             0.             0.         14400.        539621.      10400466.        135933.

 Sub-T         288400.        956000.             0.             0.       1244400.      10400466.      10400466.       5171896.
 After          82400.         14000.             0.             0.         96400.       2506016.      12906481.        439849.
 Total         370800.        970000.             0.             0.       1340800.      12906482.      12906481.       5611746.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   GRAND SUMMARY                                                                                      TABLE 5
   SARGENT SOUTH FIELD
   TOTAL PROVED RESERVES                                                                            RESERVE TYPE
                                                                                                    TOTAL PROVED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000      1523.266
 FINAL                                                                                                   15.0000      1384.722
                                                                                                         20.0000      1269.726
                                                                                                         25.0000      1173.243
                                                                                                         30.0000      1091.495
                                                                                                         35.0000      1021.603

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      5.          0.000          0.000           506.          0.000          0.000            81.       0.00       7.75
 12-07      6.          0.000          0.000           488.          0.000          0.000            78.       0.00       7.75
 12-08      3.          0.000          0.000           344.          0.000          0.000            55.       0.00       7.75
 12-09      3.          0.000          0.000           309.          0.000          0.000            50.       0.00       7.75
 12-10      3.          0.000          0.000           321.          0.000          0.000            51.       0.00       7.75
 12-11      1.          0.000          0.000            78.          0.000          0.000            12.       0.00       7.75
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      4.          0.000          0.000          2047.          0.000          0.000           328.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      4.          0.000          0.000          2047.          0.000          0.000           328.       0.00       7.75

 Cumulative             0.000          0.000           312.
 Ultimate               0.000          0.000          2359.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.        627260.          0.     627260.               0.         23726.             603534.
 12-07             0.             0.        605683.          0.     605683.           29103.         21809.             554771.
 12-08             0.             0.        427207.          0.     427207.           27809.         15107.             384291.
 12-09             0.             0.        383885.          0.     383885.           26589.         13515.             343781.
 12-10             0.             0.        398849.          0.     398849.           28624.         14004.             356221.
 12-11             0.             0.         96748.          0.      96748.            7256.          3385.              86107.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.       2539633.          0.    2539633.          119381.         91546.            2328706.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.       2539633.          0.    2539633.          119381.         91546.            2328706.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06          24677.         10000.             0.             0.         34677.        568857.        568857.        546719.
 12-07          30115.        307000.             0.             0.        337115.        217656.        786513.        181853.
 12-08          16405.          7000.             0.             0.         23405.        360886.       1147400.        284591.
 12-09          14374.             0.             0.             0.         14374.        329408.       1476808.        236456.
 12-10          13976.             0.             0.             0.         13976.        342245.       1819053.        224510.
 12-11           4400.             0.             0.             0.          4400.         81707.       1900760.         49137.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T         103946.        324000.             0.             0.        427946.       1900760.       1900760.       1523266.
 After              0.             0.             0.             0.             0.             0.       1900760.             0.
 Total         103946.        324000.             0.             0.        427946.       1900760.       1900760.       1523266.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   GRAND SUMMARY                                                                                      TABLE 6
   SARGENT SOUTH FIELD
   PROVED PRODUCING RESERVES                                                                        RESERVE TYPE
                                                                                                    PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000       772.238
 FINAL                                                                                                   15.0000       744.908
                                                                                                         20.0000       720.479
                                                                                                         25.0000       698.495
                                                                                                         30.0000       678.589
                                                                                                         35.0000       660.466

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      5.          0.000          0.000           506.          0.000          0.000            81.       0.00       7.75
 12-07      5.          0.000          0.000           175.          0.000          0.000            28.       0.00       7.75
 12-08      1.          0.000          0.000            45.          0.000          0.000             7.       0.00       7.75
 12-09      1.          0.000          0.000            24.          0.000          0.000             4.       0.00       7.75
 12-10      1.          0.000          0.000            14.          0.000          0.000             2.       0.00       7.75
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      3.          0.000          0.000           764.          0.000          0.000           122.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      3.          0.000          0.000           764.          0.000          0.000           122.       0.00       7.75

 Cumulative             0.000          0.000           312.
 Ultimate               0.000          0.000          1076.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.        627260.          0.     627260.               0.         23726.             603534.
 12-07             0.             0.        217649.          0.     217649.               0.          8233.             209416.
 12-08             0.             0.         56426.          0.      56426.               0.          2134.              54292.
 12-09             0.             0.         29365.          0.      29365.               0.          1111.              28255.
 12-10             0.             0.         17191.          0.      17191.               0.           650.              16541.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.        947892.          0.     947892.               0.         35854.             912038.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        947892.          0.     947892.               0.         35854.             912038.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06          24677.         10000.             0.             0.         34677.        568857.        568857.        546719.
 12-07          23315.             0.             0.             0.         23315.        186101.        754958.        162850.
 12-08           6805.             0.             0.             0.          6805.         47487.        802445.         37778.
 12-09           4774.             0.             0.             0.          4774.         23481.        825926.         16901.
 12-10           4376.             0.             0.             0.          4376.         12165.        838092.          7990.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          63946.         10000.             0.             0.         73946.        838092.        838092.        772238.
 After              0.             0.             0.             0.             0.             0.        838092.             0.
 Total          63946.         10000.             0.             0.         73946.        838092.        838092.        772238.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006

   GRAND SUMMARY                                                                                      TABLE 7
   SARGENT SOUTH FIELD
   PROVED UNDEVELOPED RESERVES                                                                      RESERVE TYPE
                                                                                                    PROVED UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000       751.028
 FINAL                                                                                                   15.0000       639.814
                                                                                                         20.0000       549.246
                                                                                                         25.0000       474.748
                                                                                                         30.0000       412.905
                                                                                                         35.0000       361.137

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      1.          0.000          0.000           313.          0.000          0.000            50.       0.00       7.75
 12-08      2.          0.000          0.000           299.          0.000          0.000            48.       0.00       7.75
 12-09      2.          0.000          0.000           286.          0.000          0.000            46.       0.00       7.75
 12-10      2.          0.000          0.000           308.          0.000          0.000            49.       0.00       7.75
 12-11      1.          0.000          0.000            78.          0.000          0.000            12.       0.00       7.75
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000          1283.          0.000          0.000           205.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000          1283.          0.000          0.000           205.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000          1283.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.        388034.          0.     388034.           29103.         13577.             345355.
 12-08             0.             0.        370781.          0.     370781.           27809.         12973.             329999.
 12-09             0.             0.        354520.          0.     354520.           26589.         12404.             315527.
 12-10             0.             0.        381658.          0.     381658.           28624.         13353.             339680.
 12-11             0.             0.         96748.          0.      96748.            7256.          3385.              86107.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.       1591741.          0.    1591741.          119381.         55692.            1416668.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.       1591741.          0.    1591741.          119381.         55692.            1416668.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07           6800.        307000.             0.             0.        313800.         31555.         31555.         19003.
 12-08           9600.          7000.             0.             0.         16600.        313399.        344954.        246813.
 12-09           9600.             0.             0.             0.          9600.        305927.        650881.        219555.
 12-10           9600.             0.             0.             0.          9600.        330080.        980961.        216520.
 12-11           4400.             0.             0.             0.          4400.         81707.       1062668.         49137.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          40000.        314000.             0.             0.        354000.       1062668.       1062668.        751028.
 After              0.             0.             0.             0.             0.             0.       1062668.             0.
 Total          40000.        314000.             0.             0.        354000.       1062668.       1062668.        751028.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   GRAND SUMMARY                                                                                      TABLE 8
   SARGENT SOUTH FIELD
   POSSIBLE UNDEVELOPED RESERVES                                                                    RESERVE TYPE
                                                                                                    POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000      5611.747
 FINAL                                                                                                   15.0000      4065.883
                                                                                                         20.0000      3075.665
                                                                                                         25.0000      2404.777
                                                                                                         30.0000      1929.294
                                                                                                         35.0000      1579.856

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      0.          0.000          0.000           143.          0.000          0.000            23.       0.00       7.75
 12-08      4.          0.000          0.000          1156.          0.000          0.000           185.       0.00       7.75
 12-09      6.          0.000          0.000          1398.          0.000          0.000           224.       0.00       7.75
 12-10      6.          0.000          0.000           945.          0.000          0.000           151.       0.00       7.75
 12-11      6.          0.000          0.000           641.          0.000          0.000           103.       0.00       7.75
 12-12      5.          0.000          0.000           456.          0.000          0.000            73.       0.00       7.75
 12-13      5.          0.000          0.000          1306.          0.000          0.000           209.       0.00       7.75
 12-14      5.          0.000          0.000          1051.          0.000          0.000           168.       0.00       7.75
 12-15      5.          0.000          0.000           694.          0.000          0.000           111.       0.00       7.75
 12-16      4.          0.000          0.000           456.          0.000          0.000            73.       0.00       7.75
 12-17      4.          0.000          0.000           419.          0.000          0.000            67.       0.00       7.75
 12-18      4.          0.000          0.000           657.          0.000          0.000           105.       0.00       7.75
 12-19      3.          0.000          0.000           720.          0.000          0.000           115.       0.00       7.75
 12-20      3.          0.000          0.000           502.          0.000          0.000            80.       0.00       7.75

 Sub-T      4.          0.000          0.000         10546.          0.000          0.000          1687.       0.00       7.75
 After      2.          0.000          0.000          2357.          0.000          0.000           377.       0.00       7.75
 Total      3.          0.000          0.000         12903.          0.000          0.000          2064.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000         12903.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.        177415.          0.     177415.           13306.          6207.             157902.
 12-08             0.             0.       1434799.          0.    1434799.          107610.         50201.            1276988.
 12-09             0.             0.       1734347.          0.    1734347.          130076.         60682.            1543589.
 12-10             0.             0.       1172870.          0.    1172870.           87965.         41037.            1043869.
 12-11             0.             0.        795829.          0.     795829.           59687.         27845.             708297.
 12-12             0.             0.        565409.          0.     565409.           42406.         19783.             503221.
 12-13             0.             0.       1619663.          0.    1619663.          121475.         56669.            1441519.
 12-14             0.             0.       1304490.          0.    1304490.           97837.         45642.            1161012.
 12-15             0.             0.        861400.          0.     861400.           64605.         30139.             766656.
 12-16             0.             0.        566093.          0.     566093.           42457.         19807.             503829.
 12-17             0.             0.        520302.          0.     520302.           39023.         18204.             463075.
 12-18             0.             0.        815236.          0.     815236.           61143.         28524.             725569.
 12-19             0.             0.        893604.          0.     893604.           67020.         31266.             795318.
 12-20             0.             0.        622487.          0.     622487.           46687.         21780.             554021.

 Sub-T             0.             0.      13083945.          0.   13083945.          981296.        457783.           11644866.
 After             0.             0.       2924024.          0.    2924024.          219302.        102306.            2602416.
 Total             0.             0.      16007969.          0.   16007969.         1200597.        560089.           14247282.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07           2000.        300000.             0.             0.        302000.       -144098.       -144098.       -122304.
 12-08          18400.        600000.             0.             0.        618400.        658589.        514490.        513874.
 12-09          28800.             0.             0.             0.         28800.       1514789.       2029280.       1088948.
 12-10          28800.             0.             0.             0.         28800.       1015069.       3044348.        663374.
 12-11          28800.         14000.             0.             0.         42800.        665497.       3709846.        395740.
 12-12          26000.         21000.             0.             0.         47000.        456221.       4166066.        245215.
 12-13          24000.             0.             0.             0.         24000.       1417519.       5583586.        692086.
 12-14          24000.             0.             0.             0.         24000.       1137012.       6720597.        507542.
 12-15          22400.             0.             0.             0.         22400.        744256.       7464854.        302247.
 12-16          19200.          7000.             0.             0.         26200.        477629.       7942482.        176184.
 12-17          19200.         14000.             0.             0.         33200.        429875.       8372358.        142989.
 12-18          18000.             0.             0.             0.         18000.        707569.       9079927.        213684.
 12-19          14400.             0.             0.             0.         14400.        780918.       9860845.        216384.
 12-20          14400.             0.             0.             0.         14400.        539621.      10400466.        135933.

 Sub-T         288400.        956000.             0.             0.       1244400.      10400466.      10400466.       5171896.
 After          82400.         14000.             0.             0.         96400.       2506016.      12906481.        439849.
 Total         370800.        970000.             0.             0.       1340800.      12906482.      12906481.       5611746.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 9
   OPER: CENTURY RESOURCES
   RESERVOIR: 6348`,5808`,5526`,364                                                                 RESERVE TYPE
   HAMILL & HAMILL LOC. 1 PSUD1                                                                     POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000      1364.711
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       948.926
                                                                                                         20.0000       700.623
 REMARKS                                                                                                 25.0000       541.277
                                                                                                         30.0000       432.750
                                                                                                         35.0000       355.174


                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      1.          0.000          0.000           113.          0.000          0.000            18.       0.00       7.75
 12-08      1.          0.000          0.000           272.          0.000          0.000            44.       0.00       7.75
 12-09      1.          0.000          0.000           193.          0.000          0.000            31.       0.00       7.75
 12-10      1.          0.000          0.000           138.          0.000          0.000            22.       0.00       7.75
 12-11      1.          0.000          0.000            98.          0.000          0.000            16.       0.00       7.75
 12-12      1.          0.000          0.000            94.          0.000          0.000            15.       0.00       7.75
 12-13      1.          0.000          0.000           299.          0.000          0.000            48.       0.00       7.75
 12-14      1.          0.000          0.000           217.          0.000          0.000            35.       0.00       7.75
 12-15      1.          0.000          0.000           157.          0.000          0.000            25.       0.00       7.75
 12-16      1.          0.000          0.000           114.          0.000          0.000            18.       0.00       7.75
 12-17      1.          0.000          0.000            82.          0.000          0.000            13.       0.00       7.75
 12-18      1.          0.000          0.000           198.          0.000          0.000            32.       0.00       7.75
 12-19      1.          0.000          0.000           258.          0.000          0.000            41.       0.00       7.75
 12-20      1.          0.000          0.000           183.          0.000          0.000            29.       0.00       7.75

 Sub-T      1.          0.000          0.000          2416.          0.000          0.000           387.       0.00       7.75
 After      1.          0.000          0.000          1129.          0.000          0.000           181.       0.00       7.75
 Total      1.          0.000          0.000          3545.          0.000          0.000           567.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000          3545.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.        140720.          0.     140720.           10554.          4924.             125243.
 12-08             0.             0.        337703.          0.     337703.           25328.         11816.             300559.
 12-09             0.             0.        240055.          0.     240055.           18004.          8399.             213652.
 12-10             0.             0.        170643.          0.     170643.           12798.          5970.             151874.
 12-11             0.             0.        121301.          0.     121301.            9098.          4244.             107959.
 12-12             0.             0.        116833.          0.     116833.            8763.          4088.             103983.
 12-13             0.             0.        371484.          0.     371484.           27861.         12998.             330625.
 12-14             0.             0.        268870.          0.     268870.           20165.          9407.             239298.
 12-15             0.             0.        194601.          0.     194601.           14595.          6809.             173197.
 12-16             0.             0.        140847.          0.     140847.           10564.          4928.             125356.
 12-17             0.             0.        101942.          0.     101942.            7646.          3567.              90729.
 12-18             0.             0.        245263.          0.     245263.           18395.          8581.             218287.
 12-19             0.             0.        319628.          0.     319628.           23972.         11183.             284473.
 12-20             0.             0.        227646.          0.     227646.           17073.          7965.             202608.

 Sub-T             0.             0.       2997537.          0.    2997537.          224815.        104878.            2667844.
 After             0.             0.       1400531.          0.    1400531.          105040.         49002.            1246489.
 Total             0.             0.       4398068.          0.    4398068.          329855.        153880.            3914333.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07           1600.        150000.             0.             0.        151600.        -26357.        -26357.        -24114.
 12-08           4800.             0.             0.             0.          4800.        295759.        269402.        233779.
 12-09           4800.             0.             0.             0.          4800.        208852.        478254.        150079.
 12-10           4800.             0.             0.             0.          4800.        147074.        625328.         96081.
 12-11           4800.          7000.             0.             0.         11800.         96159.        721488.         57285.
 12-12           4800.             0.             0.             0.          4800.         99183.        820671.         52880.
 12-13           4800.             0.             0.             0.          4800.        325825.       1146496.        159891.
 12-14           4800.             0.             0.             0.          4800.        234498.       1380993.        104614.
 12-15           4800.             0.             0.             0.          4800.        168397.       1549391.         68297.
 12-16           4800.             0.             0.             0.          4800.        120556.       1669947.         44450.
 12-17           4800.          7000.             0.             0.         11800.         78929.       1748876.         26465.
 12-18           4800.             0.             0.             0.          4800.        213487.       1962363.         63858.
 12-19           4800.             0.             0.             0.          4800.        279673.       2242036.         77480.
 12-20           4800.             0.             0.             0.          4800.        197808.       2439844.         49820.

 Sub-T          64000.        164000.             0.             0.        228000.       2439844.       2439844.       1160864.
 After          38000.          7000.             0.             0.         45000.       1201490.       3641333.        203847.
 Total         102000.        171000.             0.             0.        273000.       3641333.       3641333.       1364711.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 10
   OPER: CENTURY RESOURCES
   RESERVOIR: 6348`,5808`,5526`,364                                                                 RESERVE TYPE
   HAMILL & HAMILL LOC. 2 PSUD1                                                                     POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000      1312.787
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       908.072
                                                                                                         20.0000       665.662
 REMARKS                                                                                                 25.0000       510.082
                                                                                                         30.0000       404.324
                                                                                                         35.0000       328.975



                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      1.          0.000          0.000            30.          0.000          0.000             5.       0.00       7.75
 12-08      1.          0.000          0.000           296.          0.000          0.000            47.       0.00       7.75
 12-09      1.          0.000          0.000           211.          0.000          0.000            34.       0.00       7.75
 12-10      1.          0.000          0.000           150.          0.000          0.000            24.       0.00       7.75
 12-11      1.          0.000          0.000           106.          0.000          0.000            17.       0.00       7.75
 12-12      1.          0.000          0.000            76.          0.000          0.000            12.       0.00       7.75
 12-13      1.          0.000          0.000           273.          0.000          0.000            44.       0.00       7.75
 12-14      1.          0.000          0.000           235.          0.000          0.000            38.       0.00       7.75
 12-15      1.          0.000          0.000           170.          0.000          0.000            27.       0.00       7.75
 12-16      1.          0.000          0.000           123.          0.000          0.000            20.       0.00       7.75
 12-17      1.          0.000          0.000            89.          0.000          0.000            14.       0.00       7.75
 12-18      1.          0.000          0.000           136.          0.000          0.000            22.       0.00       7.75
 12-19      1.          0.000          0.000           268.          0.000          0.000            43.       0.00       7.75
 12-20      1.          0.000          0.000           180.          0.000          0.000            29.       0.00       7.75

 Sub-T      1.          0.000          0.000          2344.          0.000          0.000           375.       0.00       7.75
 After      1.          0.000          0.000          1067.          0.000          0.000           171.       0.00       7.75
 Total      1.          0.000          0.000          3411.          0.000          0.000           546.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000          3411.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.         36695.          0.      36695.            2752.          1284.              32659.
 12-08             0.             0.        367782.          0.     367782.           27584.         12868.             327330.
 12-09             0.             0.        261437.          0.     261437.           19608.          9147.             232682.
 12-10             0.             0.        185842.          0.     185842.           13938.          6502.             165402.
 12-11             0.             0.        132105.          0.     132105.            9908.          4622.             117575.
 12-12             0.             0.         93907.          0.      93907.            7043.          3286.              83578.
 12-13             0.             0.        339038.          0.     339038.           25428.         11862.             301748.
 12-14             0.             0.        291502.          0.     291502.           21863.         10199.             259440.
 12-15             0.             0.        210982.          0.     210982.           15824.          7382.             187776.
 12-16             0.             0.        152703.          0.     152703.           11453.          5343.             135908.
 12-17             0.             0.        110523.          0.     110523.            8289.          3867.              98366.
 12-18             0.             0.        168607.          0.     168607.           12645.          5899.             150062.
 12-19             0.             0.        333082.          0.     333082.           24981.         11654.             296447.
 12-20             0.             0.        223272.          0.     223272.           16745.          7812.             198714.

 Sub-T             0.             0.       2907476.          0.    2907476.          218061.        101727.            2587688.
 After             0.             0.       1324346.          0.    1324346.           99326.         46336.            1178684.
 Total             0.             0.       4231822.          0.    4231822.          317387.        148064.            3766372.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07            400.        150000.             0.             0.        150400.       -117741.       -117741.        -98189.
 12-08           4800.             0.             0.             0.          4800.        322530.        204789.        254938.
 12-09           4800.             0.             0.             0.          4800.        227882.        432671.        163753.
 12-10           4800.             0.             0.             0.          4800.        160602.        593273.        104917.
 12-11           4800.             0.             0.             0.          4800.        112775.        706048.         66978.
 12-12           4800.          7000.             0.             0.         11800.         71778.        777826.         38647.
 12-13           4800.             0.             0.             0.          4800.        296948.       1074774.        144676.
 12-14           4800.             0.             0.             0.          4800.        254640.       1329415.        113600.
 12-15           4800.             0.             0.             0.          4800.        182976.       1512391.         74210.
 12-16           4800.             0.             0.             0.          4800.        131108.       1643498.         48341.
 12-17           4800.          7000.             0.             0.         11800.         86566.       1730065.         29080.
 12-18           4800.             0.             0.             0.          4800.        145262.       1875327.         43357.
 12-19           4800.             0.             0.             0.          4800.        291647.       2166974.         80836.
 12-20           4800.             0.             0.             0.          4800.        193914.       2360888.         48863.

 Sub-T          62800.        164000.             0.             0.        226800.       2360888.       2360888.       1114006.
 After          35200.          7000.             0.             0.         42200.       1136484.       3497372.        198781.
 Total          98000.        171000.             0.             0.        269000.       3497372.       3497372.       1312787.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 11
   OPER: CENTURY RESOURCES
   RESERVOIR: 5808`,5526`                                                                           RESERVE TYPE
   HAMILL & HAMILL LOC. 3 PSUD1                                                                     POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000       921.160
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       698.487
                                                                                                         20.0000       542.664
 REMARKS                                                                                                 25.0000       430.608
                                                                                                         30.0000       348.026
                                                                                                         35.0000       285.813


                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-08      1.          0.000          0.000           257.          0.000          0.000            41.       0.00       7.75
 12-09      1.          0.000          0.000           219.          0.000          0.000            35.       0.00       7.75
 12-10      1.          0.000          0.000           150.          0.000          0.000            24.       0.00       7.75
 12-11      1.          0.000          0.000           102.          0.000          0.000            16.       0.00       7.75
 12-12      1.          0.000          0.000            95.          0.000          0.000            15.       0.00       7.75
 12-13      1.          0.000          0.000           302.          0.000          0.000            48.       0.00       7.75
 12-14      1.          0.000          0.000           223.          0.000          0.000            36.       0.00       7.75
 12-15      1.          0.000          0.000           164.          0.000          0.000            26.       0.00       7.75
 12-16      1.          0.000          0.000           121.          0.000          0.000            19.       0.00       7.75
 12-17      1.          0.000          0.000            89.          0.000          0.000            14.       0.00       7.75
 12-18      1.          0.000          0.000            51.          0.000          0.000             8.       0.00       7.75
 12-19
 12-20

 Sub-T      1.          0.000          0.000          1772.          0.000          0.000           284.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000          1772.          0.000          0.000           284.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000          1772.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.             0.          0.          0.               0.             0.                  0.
 12-08             0.             0.        319172.          0.     319172.           23938.         11167.             284067.
 12-09             0.             0.        271145.          0.     271145.           20336.          9487.             241322.
 12-10             0.             0.        185650.          0.     185650.           13924.          6496.             165231.
 12-11             0.             0.        127113.          0.     127113.            9533.          4447.             113132.
 12-12             0.             0.        117721.          0.     117721.            8829.          4119.             104773.
 12-13             0.             0.        375051.          0.     375051.           28129.         13122.             333800.
 12-14             0.             0.        276149.          0.     276149.           20711.          9662.             245776.
 12-15             0.             0.        203327.          0.     203327.           15250.          7114.             180964.
 12-16             0.             0.        149709.          0.     149709.           11228.          5238.             133243.
 12-17             0.             0.        110230.          0.     110230.            8267.          3857.              98106.
 12-18             0.             0.         63138.          0.      63138.            4735.          2209.              56194.
 12-19
 12-20

 Sub-T             0.             0.       2198405.          0.    2198405.          164880.         76918.            1956606.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.       2198405.          0.    2198405.          164880.         76918.            1956606.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07              0.             0.             0.             0.             0.             0.             0.             0.
 12-08           4000.        150000.             0.             0.        154000.        130067.        130067.         97445.
 12-09           4800.             0.             0.             0.          4800.        236522.        366589.        170012.
 12-10           4800.             0.             0.             0.          4800.        160431.        527020.        104837.
 12-11           4800.          7000.             0.             0.         11800.        101332.        628352.         60376.
 12-12           4800.             0.             0.             0.          4800.         99973.        728325.         53317.
 12-13           4800.             0.             0.             0.          4800.        329000.       1057324.        161426.
 12-14           4800.             0.             0.             0.          4800.        240976.       1298300.        107489.
 12-15           4800.             0.             0.             0.          4800.        176164.       1474463.         71437.
 12-16           4800.             0.             0.             0.          4800.        128443.       1602906.         47352.
 12-17           4800.             0.             0.             0.          4800.         93306.       1696212.         31272.
 12-18           3600.             0.             0.             0.          3600.         52594.       1748806.         16196.
 12-19
 12-20

 Sub-T          50800.        157000.             0.             0.        207800.       1748806.       1748806.        921160.
 After              0.             0.             0.             0.             0.             0.       1748806.             0.
 Total          50800.        157000.             0.             0.        207800.       1748806.       1748806.        921160.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 12
   OPER: CENTURY RESOURCES
   RESERVOIR: 6348`,5808`                                                                           RESERVE TYPE
   HAMILL & HAMILL LOC. 4 PSUD1                                                                     POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000       667.815
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       525.221
                                                                                                         20.0000       420.111
 REMARKS                                                                                                 25.0000       341.085
                                                                                                         30.0000       280.606
                                                                                                         35.0000       233.569


                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-08      1.          0.000          0.000           188.          0.000          0.000            30.       0.00       7.75
 12-09      1.          0.000          0.000           240.          0.000          0.000            38.       0.00       7.75
 12-10      1.          0.000          0.000           165.          0.000          0.000            26.       0.00       7.75
 12-11      1.          0.000          0.000           113.          0.000          0.000            18.       0.00       7.75
 12-12      1.          0.000          0.000            77.          0.000          0.000            12.       0.00       7.75
 12-13      1.          0.000          0.000           236.          0.000          0.000            38.       0.00       7.75
 12-14      1.          0.000          0.000           142.          0.000          0.000            23.       0.00       7.75
 12-15      1.          0.000          0.000            51.          0.000          0.000             8.       0.00       7.75
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000          1212.          0.000          0.000           194.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000          1212.          0.000          0.000           194.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000          1212.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.             0.          0.          0.               0.             0.                  0.
 12-08             0.             0.        233759.          0.     233759.           17532.          8179.             208048.
 12-09             0.             0.        298076.          0.     298076.           22356.         10429.             265291.
 12-10             0.             0.        204090.          0.     204090.           15307.          7141.             181643.
 12-11             0.             0.        139739.          0.     139739.           10480.          4889.             124369.
 12-12             0.             0.         95678.          0.      95678.            7176.          3348.              85154.
 12-13             0.             0.        293193.          0.     293193.           21989.         10258.             260945.
 12-14             0.             0.        176006.          0.     176006.           13200.          6158.             156648.
 12-15             0.             0.         63115.          0.      63115.            4734.          2208.              56173.
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.       1503656.          0.    1503656.          112774.         52610.            1338271.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.       1503656.          0.    1503656.          112774.         52610.            1338271.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07              0.             0.             0.             0.             0.             0.             0.             0.
 12-08           2800.        150000.             0.             0.        152800.         55248.         55248.         39593.
 12-09           4800.             0.             0.             0.          4800.        260491.        315739.        187240.
 12-10           4800.             0.             0.             0.          4800.        176843.        492582.        115561.
 12-11           4800.             0.             0.             0.          4800.        119569.        612151.         71034.
 12-12           4800.          7000.             0.             0.         11800.         73354.        685505.         39511.
 12-13           4800.             0.             0.             0.          4800.        256145.        941650.        125085.
 12-14           4800.             0.             0.             0.          4800.        151848.       1093498.         67957.
 12-15           3200.             0.             0.             0.          3200.         52973.       1146472.         21833.
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          34800.        157000.             0.             0.        191800.       1146472.       1146472.        667815.
 After              0.             0.             0.             0.             0.             0.       1146472.             0.
 Total          34800.        157000.             0.             0.        191800.       1146472.       1146472.        667815.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 13
   OPER: CENTURY RESOURCES
   RESERVOIR: 6348`,5808`,5526`                                                                     RESERVE TYPE
   HAMILL & HAMILL LOC. 5 PSUD1                                                                     POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000      1033.159
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       729.531
                                                                                                         20.0000       535.263
 REMARKS                                                                                                 25.0000       405.530
                                                                                                         30.0000       315.565
                                                                                                         35.0000       251.088

                  -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-08      1.          0.000          0.000           113.          0.000          0.000            18.       0.00       7.75
 12-09      1.          0.000          0.000           265.          0.000          0.000            42.       0.00       7.75
 12-10      1.          0.000          0.000           182.          0.000          0.000            29.       0.00       7.75
 12-11      1.          0.000          0.000           125.          0.000          0.000            20.       0.00       7.75
 12-12      1.          0.000          0.000            86.          0.000          0.000            14.       0.00       7.75
 12-13      1.          0.000          0.000           194.          0.000          0.000            31.       0.00       7.75
 12-14      1.          0.000          0.000           235.          0.000          0.000            38.       0.00       7.75
 12-15      1.          0.000          0.000           153.          0.000          0.000            24.       0.00       7.75
 12-16      1.          0.000          0.000            99.          0.000          0.000            16.       0.00       7.75
 12-17      1.          0.000          0.000           159.          0.000          0.000            25.       0.00       7.75
 12-18      1.          0.000          0.000           273.          0.000          0.000            44.       0.00       7.75
 12-19      1.          0.000          0.000           194.          0.000          0.000            31.       0.00       7.75
 12-20      1.          0.000          0.000           138.          0.000          0.000            22.       0.00       7.75

 Sub-T      1.          0.000          0.000          2216.          0.000          0.000           355.       0.00       7.75
 After      1.          0.000          0.000           161.          0.000          0.000            26.       0.00       7.75
 Total      1.          0.000          0.000          2377.          0.000          0.000           380.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000          2377.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.             0.          0.          0.               0.             0.                  0.
 12-08             0.             0.        139948.          0.     139948.           10496.          4897.             124555.
 12-09             0.             0.        328680.          0.     328680.           24651.         11500.             292529.
 12-10             0.             0.        225898.          0.     225898.           16942.          7904.             201052.
 12-11             0.             0.        155257.          0.     155257.           11644.          5432.             138181.
 12-12             0.             0.        106707.          0.     106707.            8003.          3733.              94970.
 12-13             0.             0.        240897.          0.     240897.           18067.          8429.             214401.
 12-14             0.             0.        291963.          0.     291963.           21897.         10215.             259851.
 12-15             0.             0.        189375.          0.     189375.           14203.          6626.             168546.
 12-16             0.             0.        122833.          0.     122833.            9212.          4298.             109323.
 12-17             0.             0.        197607.          0.     197607.           14821.          6914.             175873.
 12-18             0.             0.        338228.          0.     338228.           25367.         11834.             301027.
 12-19             0.             0.        240893.          0.     240893.           18067.          8428.             214398.
 12-20             0.             0.        171569.          0.     171569.           12868.          6003.             152699.

 Sub-T             0.             0.       2749856.          0.    2749856.          206239.         96212.            2447404.
 After             0.             0.        199147.          0.     199147.           14936.          6968.             177243.
 Total             0.             0.       2949002.          0.    2949002.          221175.        103180.            2624646.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07              0.             0.             0.             0.             0.             0.             0.             0.
 12-08           1600.        150000.             0.             0.        151600.        -27045.        -27045.        -22445.
 12-09           4800.             0.             0.             0.          4800.        287729.        260684.        206811.
 12-10           4800.             0.             0.             0.          4800.        196252.        456936.        128239.
 12-11           4800.             0.             0.             0.          4800.        133381.        590317.         79236.
 12-12           4800.          7000.             0.             0.         11800.         83170.        673487.         44932.
 12-13           4800.             0.             0.             0.          4800.        209601.        883088.        101008.
 12-14           4800.             0.             0.             0.          4800.        255051.       1138139.        113882.
 12-15           4800.             0.             0.             0.          4800.        163746.       1301885.         66469.
 12-16           4800.          7000.             0.             0.         11800.         97523.       1399408.         36041.
 12-17           4800.             0.             0.             0.          4800.        171073.       1570480.         56172.
 12-18           4800.             0.             0.             0.          4800.        296227.       1866707.         90273.
 12-19           4800.             0.             0.             0.          4800.        209598.       2076305.         58068.
 12-20           4800.             0.             0.             0.          4800.        147899.       2224204.         37250.

 Sub-T          59200.        164000.             0.             0.        223200.       2224204.       2224204.        995938.
 After           9200.             0.             0.             0.          9200.        168043.       2392247.         37221.
 Total          68400.        164000.             0.             0.        232400.       2392247.       2392247.       1033158.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 14
   OPER: CENTURY RESOURCES
   RESERVOIR: 6348`                                                                                 RESERVE TYPE
   HAMILL & HAMILL LOC. 6 PSUD1                                                                     POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000       312.115
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       255.646
                                                                                                         20.0000       211.341
 REMARKS                                                                                                 25.0000       176.192
                                                                                                         30.0000       148.023
                                                                                                         35.0000       125.236

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-08      1.          0.000          0.000            29.          0.000          0.000             5.       0.00       7.75
 12-09      1.          0.000          0.000           270.          0.000          0.000            43.       0.00       7.75
 12-10      1.          0.000          0.000           162.          0.000          0.000            26.       0.00       7.75
 12-11      1.          0.000          0.000            97.          0.000          0.000            16.       0.00       7.75
 12-12      1.          0.000          0.000            28.          0.000          0.000             4.       0.00       7.75
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000           586.          0.000          0.000            94.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000           586.          0.000          0.000            94.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000           586.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.             0.          0.          0.               0.             0.                  0.
 12-08             0.             0.         36436.          0.      36436.            2733.          1275.              32429.
 12-09             0.             0.        334954.          0.     334954.           25122.         11719.             298113.
 12-10             0.             0.        200747.          0.     200747.           15056.          7024.             178668.
 12-11             0.             0.        120314.          0.     120314.            9024.          4210.             107081.
 12-12             0.             0.         34564.          0.      34564.            2592.          1209.              30762.
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.        727015.          0.     727015.           54526.         25437.             647052.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        727015.          0.     727015.           54526.         25437.             647052.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07              0.             0.             0.             0.             0.             0.             0.             0.
 12-08            400.        150000.             0.             0.        150400.       -117971.       -117971.        -89436.
 12-09           4800.             0.             0.             0.          4800.        293313.        175342.        211053.
 12-10           4800.             0.             0.             0.          4800.        173868.        349209.        113738.
 12-11           4800.             0.             0.             0.          4800.        102281.        451490.         60831.
 12-12           2000.             0.             0.             0.          2000.         28762.        480252.         15929.
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          16800.        150000.             0.             0.        166800.        480252.        480252.        312115.
 After              0.             0.             0.             0.             0.             0.        480252.             0.
 Total          16800.        150000.             0.             0.        166800.        480252.        480252.        312115.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 15
   OPER: CENTURY RES INC
   RESERVOIR: MIOCENE 5944-5946                                                                     RESERVE TYPE
   HAMILL & HAMILL NO. 02                                                                           PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000       378.935
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       369.684
                                                                                                         20.0000       361.188
 REMARKS                                                                                                 25.0000       353.353
                                                                                                         30.0000       346.103
                                                                                                         35.0000       339.370

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      1.          0.000          0.000           276.          0.000          0.000            44.       0.00       7.75
 12-07      1.          0.000          0.000            63.          0.000          0.000            10.       0.00       7.75
 12-08      1.          0.000          0.000             6.          0.000          0.000             1.       0.00       7.75
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000           345.          0.000          0.000            55.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000           345.          0.000          0.000            55.       0.00       7.75

 Cumulative             0.000          0.000           101.
 Ultimate               0.000          0.000           446.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.        342725.          0.     342725.               0.         12964.             329761.
 12-07             0.             0.         77790.          0.      77790.               0.          2942.              74847.
 12-08             0.             0.          6893.          0.       6893.               0.           261.               6633.
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.        427408.          0.     427408.               0.         16167.             411241.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        427408.          0.     427408.               0.         16167.             411241.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06           4918.             0.             0.             0.          4918.        324844.        324844.        313132.
 12-07           4918.             0.             0.             0.          4918.         69930.        394773.         61387.
 12-08           1229.             0.             0.             0.          1229.          5403.        400177.          4416.
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          11065.             0.             0.             0.         11065.        400177.        400177.        378935.
 After              0.             0.             0.             0.             0.             0.        400177.             0.
 Total          11065.             0.             0.             0.         11065.        400177.        400177.        378935.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 16
   OPER: CENTURY RES INC
   RESERVOIR: MIOCENE 3270-3273                                                                     RESERVE TYPE
   HAMILL & HAMILL NO. 10                                                                           PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000       220.164
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       207.336
                                                                                                         20.0000       196.209
 REMARKS                                                                                                 25.0000       186.476
                                                                                                         30.0000       177.898
                                                                                                         35.0000       170.282

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      1.          0.000          0.000            96.          0.000          0.000            15.       0.00       7.75
 12-07      1.          0.000          0.000            60.          0.000          0.000            10.       0.00       7.75
 12-08      1.          0.000          0.000            38.          0.000          0.000             6.       0.00       7.75
 12-09      1.          0.000          0.000            24.          0.000          0.000             4.       0.00       7.75
 12-10      1.          0.000          0.000            14.          0.000          0.000             2.       0.00       7.75
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000           231.          0.000          0.000            37.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000           231.          0.000          0.000            37.       0.00       7.75

 Cumulative             0.000          0.000            26.
 Ultimate               0.000          0.000           257.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.        118982.          0.     118982.               0.          4500.             114482.
 12-07             0.             0.         74633.          0.      74633.               0.          2823.              71810.
 12-08             0.             0.         46815.          0.      46815.               0.          1771.              45044.
 12-09             0.             0.         29365.          0.      29365.               0.          1111.              28255.
 12-10             0.             0.         17191.          0.      17191.               0.           650.              16541.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.        286987.          0.     286987.               0.         10855.             276132.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        286987.          0.     286987.               0.         10855.             276132.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06           4774.             0.             0.             0.          4774.        109708.        109708.        105042.
 12-07           4774.             0.             0.             0.          4774.         67037.        176745.         58357.
 12-08           4774.             0.             0.             0.          4774.         40271.        217015.         31875.
 12-09           4774.             0.             0.             0.          4774.         23481.        240496.         16901.
 12-10           4376.             0.             0.             0.          4376.         12165.        252662.          7990.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          23470.             0.             0.             0.         23470.        252662.        252662.        220164.
 After              0.             0.             0.             0.             0.             0.        252662.             0.
 Total          23470.             0.             0.             0.         23470.        252662.        252662.        220164.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 17
   OPER: CENTURY RES INC
   RESERVOIR: MIOCENE 3435                                                                          RESERVE TYPE
   HAMILL & HAMILL NO. 10 - DEP                                                                     PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.0000000  0.0000000   0.0000000  0.0000000            0.00       0.00        0.00         10.0000         0.000
 FINAL        0.0000000  0.0000000   0.0000000  0.0000000            0.00       0.00        0.00         15.0000         0.000
                                                                                                         20.0000         0.000
 REMARKS                                                                                                 25.0000         0.000
                                                                                                         30.0000         0.000
                                                                                                         35.0000         0.000

                  -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000             0.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.             0.          0.          0.               0.             0.                  0.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.             0.          0.          0.               0.             0.                  0.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T              0.             0.             0.             0.             0.             0.             0.             0.
 After              0.             0.             0.             0.             0.             0.             0.             0.
 Total              0.             0.             0.             0.             0.             0.             0.             0.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 18
   OPER: CENTURY RES INC
   RESERVOIR: MIOCENE 2760-2763                                                                     RESERVE TYPE
   HAMILL & HAMILL NO. 11                                                                           PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000        49.744
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000        48.082
                                                                                                         20.0000        46.557
 REMARKS                                                                                                 25.0000        45.150
                                                                                                         30.0000        43.850
                                                                                                         35.0000        42.643

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      1.          0.000          0.000            44.          0.000          0.000             7.       0.00       7.75
 12-07      1.          0.000          0.000            16.          0.000          0.000             3.       0.00       7.75
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000            60.          0.000          0.000            10.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000            60.          0.000          0.000            10.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000            60.


         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.         54907.          0.      54907.               0.          2077.              52830.
 12-07             0.             0.         19899.          0.      19899.               0.           753.              19146.
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.         74805.          0.      74805.               0.          2830.              71976.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.         74805.          0.      74805.               0.          2830.              71976.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06           4409.         10000.             0.             0.         14409.         38421.         38421.         36420.
 12-07           4008.             0.             0.             0.          4008.         15138.         53559.         13324.
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T           8417.         10000.             0.             0.         18417.         53559.         53559.         49744.
 After              0.             0.             0.             0.             0.             0.         53559.             0.
 Total           8417.         10000.             0.             0.         18417.         53559.         53559.         49744.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 19
   OPER: CENTURY RES INC
   RESERVOIR: MIOCENE 4204-4214                                                                     RESERVE TYPE
   HAMILL & HAMILL NO. 14                                                                           PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000        71.755
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000        69.549
                                                                                                         20.0000        67.537
 REMARKS                                                                                                 25.0000        65.695
                                                                                                         30.0000        64.002
                                                                                                         35.0000        62.439

                  -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      1.          0.000          0.000            49.          0.000          0.000             8.       0.00       7.75
 12-07      1.          0.000          0.000            22.          0.000          0.000             3.       0.00       7.75
 12-08      1.          0.000          0.000             2.          0.000          0.000             0.       0.00       7.75
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000            73.          0.000          0.000            12.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000            73.          0.000          0.000            12.       0.00       7.75

 Cumulative             0.000          0.000            32.
 Ultimate               0.000          0.000           106.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.         61045.          0.      61045.               0.          2309.              58736.
 12-07             0.             0.         26976.          0.      26976.               0.          1020.              25956.
 12-08             0.             0.          2718.          0.       2718.               0.           103.               2615.
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.         90739.          0.      90739.               0.          3432.              87307.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.         90739.          0.      90739.               0.          3432.              87307.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06           4812.             0.             0.             0.          4812.         53924.         53924.         51791.
 12-07           4812.             0.             0.             0.          4812.         21144.         75067.         18478.
 12-08            802.             0.             0.             0.           802.          1813.         76881.          1487.
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          10426.             0.             0.             0.         10426.         76881.         76881.         71755.
 After              0.             0.             0.             0.             0.             0.         76881.             0.
 Total          10426.             0.             0.             0.         10426.         76881.         76881.         71755.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 20
   OPER: CENTURY RES INC
   RESERVOIR: MIOCENE 4230-4233                                                                     RESERVE TYPE
   HAMILL & HAMILL NO. 17                                                                           PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000        51.640
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000        50.257
                                                                                                         20.0000        48.988
 REMARKS                                                                                                 25.0000        47.818
                                                                                                         30.0000        46.737
                                                                                                         35.0000        45.733


                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      1.          0.000          0.000            40.          0.000          0.000             6.       0.00       7.75
 12-07      1.          0.000          0.000            15.          0.000          0.000             2.       0.00       7.75
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000            55.          0.000          0.000             9.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000            55.          0.000          0.000             9.       0.00       7.75

 Cumulative             0.000          0.000            45.
 Ultimate               0.000          0.000           100.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.         49602.          0.      49602.               0.          1876.              47726.
 12-07             0.             0.         18351.          0.      18351.               0.           694.              17657.
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.         67953.          0.      67953.               0.          2570.              65383.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.         67953.          0.      67953.               0.          2570.              65383.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06           5765.             0.             0.             0.          5765.         41961.         41961.         40334.
 12-07           4804.             0.             0.             0.          4804.         12853.         54814.         11306.
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          10569.             0.             0.             0.         10569.         54814.         54814.         51640.
 After              0.             0.             0.             0.             0.             0.         54814.             0.
 Total          10569.             0.             0.             0.         10569.         54814.         54814.         51640.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 21
   OPER: CENTURY RES INC
   RESERVOIR: MIOCENE 4300                                                                          RESERVE TYPE
   HAMILL & HAMILL NO. 19                                                                           PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.0000000  0.0000000   0.0000000  0.0000000            0.00       0.00        7.75         10.0000         0.000
 FINAL        0.0000000  0.0000000   0.0000000  0.0000000            0.00       0.00        0.00         15.0000         0.000
                                                                                                         20.0000         0.000
 REMARKS                                                                                                 25.0000         0.000
                                                                                                         30.0000         0.000
                                                                                                         35.0000         0.000


                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00

 Cumulative             0.000          0.000           107.
 Ultimate               0.000          0.000           107.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.             0.          0.          0.               0.             0.                  0.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.             0.          0.          0.               0.             0.                  0.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T              0.             0.             0.             0.             0.             0.             0.             0.
 After              0.             0.             0.             0.             0.             0.             0.             0.
 Total              0.             0.             0.             0.             0.             0.             0.             0.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 22
   OPER: CENTURY RESOURCES
   RESERVOIR: 4220 & 4170                                                                           RESERVE TYPE
   HAMILL & HAMILL NO. 21                                                                           PROVED UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000       306.830
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       261.906
                                                                                                         20.0000       224.951
 REMARKS                                                                                                 25.0000       194.282
                                                                                                         30.0000       168.625
                                                                                                         35.0000       147.002


                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      1.          0.000          0.000           142.          0.000          0.000            23.       0.00       7.75
 12-08      1.          0.000          0.000           132.          0.000          0.000            21.       0.00       7.75
 12-09      1.          0.000          0.000           181.          0.000          0.000            29.       0.00       7.75
 12-10      1.          0.000          0.000            90.          0.000          0.000            14.       0.00       7.75
 12-11      1.          0.000          0.000             3.          0.000          0.000             1.       0.00       7.75
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000           549.          0.000          0.000            88.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000           549.          0.000          0.000            88.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000           549.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.        175968.          0.     175968.           13198.          6157.             156613.
 12-08             0.             0.        164083.          0.     164083.           12306.          5741.             146036.
 12-09             0.             0.        225057.          0.     225057.           16879.          7874.             200303.
 12-10             0.             0.        112020.          0.     112020.            8402.          3919.              99699.
 12-11             0.             0.          3983.          0.       3983.             299.           139.               3545.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.        681111.          0.     681111.           51083.         23831.             606197.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        681111.          0.     681111.           51083.         23831.             606197.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07           4000.        157000.             0.             0.        161000.         -4387.         -4387.         -8275.
 12-08           4800.             0.             0.             0.          4800.        141236.        136849.        110095.
 12-09           4800.             0.             0.             0.          4800.        195503.        332352.        140886.
 12-10           4800.             0.             0.             0.          4800.         94899.        427252.         62179.
 12-11            400.             0.             0.             0.           400.          3145.        430397.          1945.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          18800.        157000.             0.             0.        175800.        430397.        430397.        306830.
 After              0.             0.             0.             0.             0.             0.        430397.             0.
 Total          18800.        157000.             0.             0.        175800.        430397.        430397.        306830.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT



R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 23
   OPER: CENTURY RESOURCES
   RESERVOIR: 2750` & 4040`                                                                         RESERVE TYPE
   HAMILL & HAMILL NO. 22                                                                           PROVED UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000       444.198
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       377.909
                                                                                                         20.0000       324.296
 REMARKS                                                                                                 25.0000       280.466
                                                                                                         30.0000       244.280
                                                                                                         35.0000       214.135


                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      1.          0.000          0.000           171.          0.000          0.000            27.       0.00       7.75
 12-08      1.          0.000          0.000           167.          0.000          0.000            27.       0.00       7.75
 12-09      1.          0.000          0.000           104.          0.000          0.000            17.       0.00       7.75
 12-10      1.          0.000          0.000           217.          0.000          0.000            35.       0.00       7.75
 12-11      1.          0.000          0.000            75.          0.000          0.000            12.       0.00       7.75
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000           734.          0.000          0.000           117.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000           734.          0.000          0.000           117.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000           734.

         -------------------COMPANY FUTURE GROSS REVENUE-------------------      ---- PROD & ADV TAXES ----     ----REVENUE----

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.        212066.          0.     212066.           15905.          7420.             188742.
 12-08             0.             0.        206698.          0.     206698.           15502.          7232.             183964.
 12-09             0.             0.        129463.          0.     129463.            9710.          4530.             115223.
 12-10             0.             0.        269638.          0.     269638.           20223.          9434.             239981.
 12-11             0.             0.         92765.          0.      92765.            6957.          3246.              82562.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.        910630.          0.     910630.           68297.         31861.             810471.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        910630.          0.     910630.           68297.         31861.             810471.

         ------------------------------ DEDUCTIONS -------------------------------  ---FUTURE NET INCOME BEFORE INCOME TAXES---

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07           2800.        150000.             0.             0.        152800.         35942.         35942.         27278.
 12-08           4800.          7000.             0.             0.         11800.        172164.        208105.        136718.
 12-09           4800.             0.             0.             0.          4800.        110423.        318529.         78669.
 12-10           4800.             0.             0.             0.          4800.        235181.        553709.        154341.
 12-11           4000.             0.             0.             0.          4000.         78562.        632271.         47191.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          21200.        157000.             0.             0.        178200.        632271.        632271.        444198.
 After              0.             0.             0.             0.             0.             0.        632271.             0.
 Total          21200.        157000.             0.             0.        178200.        632271.        632271.        444198.

                          SUBJECT TO CONDITIONS AND QUALIFICATIONS PRESENTED IN THE TEXT OF THIS REPORT