Unassociated Document


    Exhibit
      10.5 

     

    
 

    AQUATIC
      CELLULOSE

     

     

     

     

     

     

    ESTIMATED

     

    RESERVES
      AND FUTURE INCOME

     

    ATTRIBUTABLE
      TO CERTAIN

     

    LEASEHOLD
      INTERESTS

     

    AS
      OF

     

     

    January
      1, 2005

     

     

    


     


    
      
        
          


        

        
        

      

      
        1

        
          

        

      

      
        
        

        
        

      

    



    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 Discounted

            	
               

            
	
              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

            	 
	 	 
	
              Prado
                Field, Jim Hogg Co, TX 

            	
              5-7

            
	 	 
	
              Sargent
                South Field, Matagorda Co, TX 

            	
              8-22

            


    


    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    


    


    


    



    
      
        
          


        

        
        

      

      
        3

        
          

        

      

      
        
        

        
        

      

    



    Phone:
      (281) 759-8860 Fax:
      (281) 759-3513 www.ralenser.com

     

    R.
      A. Lenser and Associates, Inc.

    Consulting
      Petroleum Engineers and Geologists

    11757
      Katy Freeway

    Suite
      370

    Houston,
      Texas 77079

    March
      24,
      2005

    Aquatic
      Cellulose International Corp.

    Suite
      5,
      2504-43rd St.Vernon,

     British
      Columbia Canada VIP 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, 2005. 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. 2005

            	 	 	 
	 	 	
               

              proved

              Producing

            	 	
               

              Proved

              Undeveloped

            	 	
               

              Total

              Proved

            	 
	
              Remaining
                Reserves

            	 	 	 	 	 	 	 	 	 	 
	
              Oil
                / Condensate -
                MBbIs

            	 	 	
              1

            	 	 	
              0

            	 	 	
              1

            	 
	
              Gas
                -
                MMCF

               

            	 	 	
              39

              
              

            	 	 	
              205

              
              

            	 	 	
              244

              
              

            	 
	
              Income
                Data

            	 	 	 	 	 	 	 	 	 	 
	
              Future
                Gross Revenue

            	 	
              $

            	
              257,131

            	 	
              $

            	
              1,046,928

            	 	
              $

            	
              1,304,059

            	 
	
              Deductions

            	 	 	
              95,986

            	 	 	
              409
                150

            	 	 	
              505,136

            	 
	
              Future
                Net Income

               

            	 	
              $

              
              

            	
              161,145

              
              

            	 	
              $

              
              

            	
              637,778

              
              

            	 	
              $

              
              

            	
              1,809,195

              
              

            	 
	
               

              Discounted
                FNI @ 10%

            	 	
              
              

              $

            	
              
              

              150,345

            	 	
              
              

              $

            	
              
              

              443,408

            	 	
              
              

              $

            	
              
              

              593,753

            	 


    

    


     

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

     


    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    


    Aquatic
      Cellulose International Corp.

    March
      24,
      2005

    Page
      2

     

    
      	
              Possible

              Undeveloped

            	 	 	 
	
               

              Remaining
                Reserves

            	 	 	 	 
	
              Oil
                / Condensate -
                MBbls

            	 	 	
              0

            	 
	
              Gas
                -
                MMCF

            	 	 	
              2064

            	 
	
              Income
                Data

            	 	 	 	 
	
              Future
                Gross Revenue

            	 	
              $

            	
              10,528,440

            	 
	
              Deductions

            	 	 	
              2
                498 403

            	 
	
              Future
                Net Income

            	 	
              $

            	
              8,030,038

            	 
	
              Discounted
                FNI @10%

            	 	
              $

            	
              3,381,313

            	 


    

    


     

    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

            	 
	
               

              10

            	 	
              
              

              $

            	
              
              

              593,753

            	 
	
              15

            	 	
              $

            	
              520,193

            	 
	
              20

            	 	
              $

            	
              460,092

            	 
	
              25

            	 	
              $

            	
              410,481

            	 
	
              30

            	 	
              $

            	
              369,143

            	 
	
              35

            	 	
              $

            	
              334,403

            	 


    

    


     

    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 various
      states.


    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    


    


    Aquatic
      Cellulose International Corp.

    March
      24,
      2005

    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 (SEE), 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.

    


    


    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,
      2004.


    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    


    


    


    


    Liquid
      Hydrocarbon Prices

    


    For
      the
      current report, New Century Energy Corp. provided oil / condense 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 overall average price for the proved oil /
      condensate reserves
      is $41.43 per barrel and accounts for 43.3 percent of the future gross income
      from all proved
      reserves.

    


    


    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 $
      5.22 per MCP
      and
      accounts for 56.7 percent of the future gross income from all proved
      reserves.

    


    


    Income
      Data

    


    The
      future gross revenue is determined before deduction of production and ad Valero
      taxes.
      Future net income is determined after deduction of the normal costs of operating
      the wells,
      development costs, production taxes and ad Valero 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 I through 4 are the Grand
      Summa-ries
      and
      Tables 5 through 19 are individual well cashflows alphabetically by state,
      field, and 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


    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    


    


    Aquatic
      Cellulose International Corp.

    March
      24,
      2005

    Page
      5

    


    revenues
      therefrom 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.

    


    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, afield 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 environmental 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. LENS ER AND ASSOCIATES, INC.

               

              Ronald
                A. Lenser

              Registered
                Professional Engineer PE
                No. 30558

            


    

    


    RAL/rsr


    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    


    PETROLEUM
      RESERVES DEFINITIONS

     

    SOCIETY
      OF PETROLEUM ENGINEERS (SEE)

     

    AND

     

    WORLD
      PETROLEUM CONGRESSES (WPC)

    RESERVES

     

    Reserves
      are those quantities of petroleum* which are anticipated to be commercially
      recovered from known accumulations from a given date forward. All reserve
      estimates involve some degree of uncertainty. The uncertainty depends chiefly
      on
      the
      amount of reliable geologic and engineering data available at the time of the
      estimate
      and the interpretation of these data. The relative degree of uncertainty may
      be
conveyed
      by placing reserves into one of two principal classifications, either proved
      or
unproved.
      Unproved reserves are less certain to be recovered than proved reserves and
      may
      be further sub-classified as probable and possible reserves to denote
      progressively increasing uncertainty in their recoverability.

     

    The
      intent of the Society of Petroleum Engineers (SEE) and the World Petroleum
      Congresses
      (WPC) in approving additional classifications beyond proved reserves is to
      facilitate
      consistency among professionals using such terms. In presenting these
definitions,
      neither organization is recommending public disclosure of reserves classified
      as unproved. Public disclosure of the quantities classified as unproved
reserves
      is left to the discretion of the countries or companies involved.

     

    Estimation
      of reserves is done under conditions of uncertainty. The method of estimation
      is called deterministic if a single best estimate of reserves is made based
      on
known
      geological, engineering, and economic data. The method of estimation is called
      probabilistic
      when the known geological, engineering, and economic data are used to
generate
      a range of estimates and their associated probabilities. Identifying reserves
      as
proved,
      probable, and possible has been the most frequent classification method and
      gives
      an
      indication of the probability of recovery. Because of potential differences
      in
uncertainty,
      caution should be exercised when aggregating reserves of different classifications.

     

    Reserves
      estimates will generally be revised as additional geologic or engineering
data
      becomes available or as economic conditions change. Reserves do not include
      quantities
      of petroleum being held in inventory, and may be reduced for usage or
processing
      losses if required for financial reporting.

     

    *PETROLEUM:
      For the purpose of these definitions, the term petroleum refers to naturally
      occurring liquids and gases
      which are predominately comprised of hydrocarbon compounds. Petroleum may also
      contain non-hydrocarbon compounds
      in which sulfur, oxygen, and/or nitrogen atoms are combined with carbon and
      hydrogen. Common examples of
      non-hydrocarbons found in petroleum are nitrogen, carbon dioxide, and hydrogen
      sulfide.


    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    


    RESERVES (Continued)

    


    


    Reserves
      may
      be
      attributed
      to
      either
      natural
      energy or
      improved
      recovery
      methods.
      Improved
      recovery
      methods include all methods for supplementing natural energy
      or
      altering natural forces in the reservoir to increase ultimate recovery. Examples
      of
      such
      methods are pressure maintenance, cycling, waterflooding, thermal methods,
      chemical
      flooding, and the use of miscible and immiscible displacement fluids. Other
      improved
      recovery methods may be developed in the future as petroleum technology
continues
      to evolve.

    


    


    PROVED
      RESERVES

    


    Proved
      reserves are those quantities of petroleum which, by analysis of geological
      and engineering data, can be estimated with reasonable certainty to be
commercially
      recoverable, from a given date forward, from known reservoirs and under
current
      economic conditions, operating methods, and government regulations. Proved
      reserves
      can be categorized as developed or undeveloped.

    


    If
      deterministic methods are used, the term reasonable certainty is intended to
      express
      a
      high degree of confidence that the quantities will be recovered. If
      probabilistic methods
      are used, there should be at least a 90% probability that the quantities
      actually recovered will equal or exceed the estimate.

    


    Establishment
      of current economic conditions should include relevant historical petroleum
      prices and associated costs and may involve an averaging period that is
consistent
      with the purpose of the reserve estimate, appropriate contract obligations,
      corporate
      procedures, and government regulations involved in reporting these
      reserves.

    


    In
      general, reserves are considered proved if the commercial producibility of
      the
      reservoir is supported by actual production or formation tests. In this context,
      the term proved
      refers to the actual quantities of petroleum reserves and not just the
      productivity of
      the
      well or reservoir. In certain cases, proved reserves may be assigned on the
      basis of
      well
      logs and/or core analysis that indicate the subject reservoir is hydrocarbon
      bearing
      and is analogous to reservoirs in the same area that are producing or have
      demonstrated
      the ability to produce on formation tests.

    


    The
      area
      of the reservoir considered as proved includes (1) the area delineated by
drilling
      and defined by fluid contacts, if any, and (2) the undefiled portions of the
      reservoir
      that can reasonably be judged as commercially productive on the basis of
available
      geological and engineering data. In the absence of data on fluid contacts,
      the
lowest
      known occurrence of hydrocarbons controls the proved limit unless otherwise
      indicated
      by definitive geological, engineering or performance data.


    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    


    PROVED
      RESERVE (Continued)

     

    Reserves
      may be classified as proved if facilities to process and transport those
reserves
      to market are operational at the time of the estimate or there is a reasonable
      expectation
      that such facilities will be installed. Reserves in undeveloped locations may
      be
      classified as proved undeveloped provided (1) the locations are direct offsets
      to wells that
      have
      indicated commercial production in the objective formation, (2) it is reasonably
      certain
      such locations are within the known proved productive limits of the objective
      formation,
      (3) the locations conform to existing well spacing regulations where
applicable,
      and (4) it is reasonably certain the locations will be developed. Reserves
      from
other
      locations are categorized as proved undeveloped only where interpretations
      of
geological
      and engineering data from wells indicate with reasonable certainty that the
      objective
      formation is laterally continuous and contains commercially recoverable
petroleum
      at locations beyond direct offsets.

    


    Reserves
      which are to be produced through the application of established improved
      recovery methods are included in the proved classification when (1) successful
      testing
      by a pilot project or favorable response of an installed program in the same
      or
      an analogous
      reservoir with similar rock and fluid properties provides support for the
analysis
      on which the project was based, and, (2) it is reasonably certain that the
      project will
      proceed. Reserves to be recovered by improved recovery methods that have yet
      to
be
      established through commercially successful applications are included in the
      proved classification only (1) after a favorable production response from the
      subject reservoir from
      either (a) a representative pilot or (b) an installed program where the response
      provides
      support for the analysis on which the project is based and (2) it is reasonable
      certain
      the project will proceed.

    


    


    UNPROVED
      RESERVES

    


    


    Unproved
      reserves are based on geologic and/or engineering data similar to that
used
      in
      estimates of proved reserves; but technical, contractual, economic, or
      regulatory uncertainties preclude such reserves being classified as proved.
      Unproved reserves may be further classified as probable reserves and possible
      reserves.

    


    Unproved
      reserves may be estimated assuming future economic conditions different
      from those prevailing at the time of the estimate. The effect of possible future
      improvements
      in economic conditions and technological developments can be expressed
      by allocating appropriate quantities of reserves to the probable and possible
      classifications.


    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    


    PROBABLE
      RESERVES

    


    Probable
      reserves are those unproved reserves which analysis of geological and
      engineering data suggests are more likely than not to be recoverable. In this
      context, when probabilistic methods are used, there should be at least a 50%
      probability that the quantities actually recovered will equal or exceed the
      sum
      of estimated proved plus probable reserves.

    


    In
      general, probable reserves may include (1) reserves anticipated to be proved
      by
      normal steepest drilling where sub-surface control is inadequate to classify
      these reserves as proved, (2) reserves in formations that appear to be
      productive based on well log characteristics but lack core data or definitive
      tests and which are not analogous to producing or proved reservoirs in the
      area,
      (3) incremental reserves attributable to infix drilling that could have been
      classified as proved if closer statutory spacing had been approved at the time
      of the estimate, (4) reserves attributable to improved recovery methods that
      have been established by repeated commercially successful applications when
      (a)
      a project or pilot is planned but not in operation and (b) rock, fluid, and
      reservoir characteristics appear favorable for commercial application, (5)
      reserves in an area of the formation that appears to be separated from the
      proved area by faulting and the geologic interpretation indicates the subject
      area is structurally higher than the proved area, (6) reserves attributable
      to a
      future worker, treatment, re-treatment, change of equipment, or other mechanical
      procedures, where such procedure has not been proved successful in wells which
      exhibit similar behavior in analogous reservoirs, and (7) incremental reserves
      in proved reservoirs where an alternative interpretation of performance or
      volumetric data indicates more reserves than can be classified as
      proved.

    


    


    POSSIBLE
      RESERVES

    


    Possible
      reserves are those unproved reserves which analysis of geological and
      engineering data suggests are less likely to be recoverable than probable
      reserves. In this context, when probabilistic methods are used, there should
      be
      at least a 10% probability that the quantities actually recovered will equal
      or
      exceed the sum of estimated proved plus probable plus possible
      reserves.

    


    In
      general, possible reserves may include (1) reserves which, based on geological
      interpretations, could possibly exist beyond areas classified as probable,
      (2)
      reserves in formations that appear to be petroleum bearing based on log and
      core
      analysis but may not be productive at commercial rates, (3) incremental reserves
      attributed to infix drilling that are subject to technical uncertainty, (4)
      reserves attributed to improved recovery methods when (a) a project or pilot
      is
      planned but not in operation and (b) rock, fluid, and reservoir characteristics
      are such that a reasonable doubt exists that the project will be commercial,
      and
      (5) reserves in an area of the formation that appears to be separated from
      the
      proved area by faulting and geological interpretation indicates the subject
      area
      is structurally lower than the proved area.


    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    


    RESERVE
      STATUS CATEGORIES

     

    Reserve
      status categories define the development and producing status of wells and
      reservoirs.

    


    Developed:
      Developed reserves are expected to be recovered from existing wells including
      reserves behind pipe. Improved recovery reserves are considered developed
only
      after the necessary equipment has been installed, or when the costs to do so
      are
relatively
      minor. Developed reserves may be subcategorized as producing or non-producing.

     

    Producing:
      Reserves subcategorized as producing are expected to be recovered from
      completion intervals which are open and producing at the time of the
estimate.
      Improved recovery reserves are considered producing only after the improved
      recovery project is in operation.

     

    Non-Producing:
      Reserves subcategorized as non-producing include shut-in and behind-pipe
      reserves.

     

    Shut-in
      reserves are expected to be recovered from (1) completion intervals which
      are
      open at the time of the estimate but which have not started producing,
(2)
      wells
      which were shut-in for market conditions or pipeline connections, or (3)
wells
      not
      capable of production for mechanical reasons.

     

    Behind
      pipe reserves are expected to be recovered from zones in existing wells,
      which will require additional completion work or future recompletion prior
      to
      the
      start of production.

    


    Undeveloped
      Reserves: Undeveloped reserves are expected to be recovered: (1) from
new
      wells
      on undefiled acreage, (2) from deepening existing wells to a different
      reservoir, or
      (3)
      where a relatively large expenditure is required to (a) recomplete an existing
      well or (b)
      install production or transportation facilities for primary or improved recovery
      projects.

     

    Approved
      by the Board of Directors, Society of Petroleum Engineers (SEE), Inc. March
      7,
1997


    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    


     

    


    
      	
               

              RBA.
                LENSER &ASSOCIATES

              HOUSTON,
                TEXAS

               

            	 	 	 	 	 	 	 	
               

              TABLE
                A

              PAGE
                1

               

            
	
               

              AQUATIC
                CELLULOSE INTERNATIONAL CORP.

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

              AS
                OF JANUARY 1,
                2005

               

            
	 	 	 

              8/8
                RESERVES

            	 	 	 	 	 
	 LEASE
              / WELL NAME	
              RESERVE

              CATEGORY  

            	
              OIL

              MBBLS

            	
               NIL

              MBBLS

            	
              GAS

              MMCF 

            	
               WORKING

              INTEREST

            	
               REVENUE

              INTEREST

            	
               OIL

              PRICE

              $/BBL

            	
               GAS

              PRICE

              $/MCF

            	
               TABLE

              NUMBER

            
	
              PROVED
                RESERVES

              K
                M
                F A-1 #20

            	
               

              1
                PVPD

            	
               

              2.499

            	
               

              0.000

            	
               

              0

            	
               

              0.4946

            	
               

              0.3957

            	
               

              41.25

            	
               

              0.00

            	
               

              8

            
	
              KMF
                LEASE 2 #701

            	
              1
                PVPD

            	
              0.967

            	
              0.000

            	
              0

            	
              0.4946

            	
              0.3957

            	
              41B25

            	
              0.00

            	
              9

            
	
              HOMILY
                & HOMILY NO. 10

            	
              1
                PVPD

            	
              0.000

            	
              0.000

            	
              78

            	
              0.2000

            	
              0.1600

            	
              0.00

            	
              5.10

            	
              18

            
	
              HOMILY
                & HOMILY NO. 17

            	
              1
                PVPD

            	
              0.000

            	
              0.000

            	
              100

            	
              0.2000

            	
              0.1600

            	
              0.00

            	
              5.10

            	
              19

            
	
              HOMILY
                & HAMILL NO. 19

            	
              1
                PVPD

            	
              0.000

            	
              0B000

            	
              68

            	
              0.2000

            	
              0.1600

            	
              0.00

            	
              5.10

            	
              20

            
	
              HAMILL
                & HAMILL NO. 21

            	
              3PVUD

            	
              0.000

            	
              0.000

            	
              549

            	
              0.2000

            	
              0B1600

            	
              0.00

            	
              5B10

            	
              21

            
	
              HAMILL
                & HAMILL NO. 22

               

            	
              3PVUD

               

            	
              0.000

               

            	
              0.000

               

            	
              734

               

            	
              0.2000

               

            	
              0.1600

               

            	
              0.00

               

            	
              5.10

               

            	
              22

               

            
	
               

              GRAND
                TOTAL PROVED

               

            	
               

            	
               

              3.466

               

            	
               

              0B000

               

            	
               

              1529

               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

              POSSIBLE
                RESERVES

               

              HAMILL
                & HAMILL LOO. 1 PSEUDO

            	
               

              1
                PVPD

            	
               

              0.000

            	
               

              0.000

            	
               

              3545

            	
               

              0.2000

            	
               

              0.1600

            	
               

              0.00

            	
               

              5.10

            	
               

              12

            
	
              HAMILL
                & HAMILL LOO. 2 PSEUDO

            	
              1
                PVPD

            	
              0.000

            	
              0B000

            	
              3411

            	
              0.2000

            	
              0.1600

            	
              0.00

            	
              5.10

            	
              13

            
	
              HAMILL
                & HAMILL LOO. 3 PSEUDO

            	
              1
                PVPD

            	
              0.000

            	
              0.000

            	
              1772

            	
              0.2000

            	
              0B1600

            	
              0.00

            	
              5.10

            	
              14

            
	
              HAMILL
                & HAMILL LOO. 4 PSUD1

            	
              1
                PVPD

            	
              0.000

            	
              0.000

            	
              1212

            	
              0.2000

            	
              0.1600

            	
              0.00

            	
              5.10

            	
              15

            
	
              HAMILL
                & HAMILL LOO. 5 PSUD1

            	
              1
                PVPD

            	
              0.000

            	
              0.000

            	
              2377

            	
              0.2000

            	
              0.1600

            	
              0.00

            	
              5.10

            	
              16

            
	
              HAMILL
                & HAMILL LOO. 6 PSUD1

               

            	
              3PVUD

               

            	
              0.000

               

            	
              0.000

               

            	
              586

               

            	
              0.2000

               

            	
              0.1600

               

            	
              0.00

               

            	
              5.10

               

            	
              17

               

            
	
               

              GRAND
                TOTAL POSSIBLE

            	
               

            	
               

              0.000

            	
               

              0.000

            	
               

              12903

            	 	 	 	 	 


    

    



    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

     

    
      	
              R.A.LENSER & ASSOCIATES 

              HOUSTON, TEXAS

            	
              TABLE
                B

              PAGE
                1

               

            


    

     

     

    
      	
               AQUATIC
                CELLULOSE INTERNATIONAL CORP.

              SUMMARY
                OF 8/8ths RESERVES AND INCOME DATA

              AS
                OF JANUARY 1, 2005

            
	 	 	 	 	 	 	 	 	 	 	 
	 	
              NET
                RESERVES 

            	 	 	 	 	 	 
	 LEASE
              / WELL NAME	
              RESERVE

              CATEGORY 

            	
               OIL

              MBBLS

            	
               NIL

              MBBLS

            	
              GAS

              MMCF 

            	
               GROSS

              REVENUE

              --M$--

            	
               TOTAL

              EXPENSES

              --M$--

            	
               CAPITAL

              EXPENSE

              ---M$---

            	
               BFINET

              INCOME-

              ---M$---

            	
               DISCNET

              INCOME

              @
                10%

              ----
                M$--

            	
               TABLE

              NUMBER

            
	 	 	 	 	 	 	 	 	 	 	 
	
              PROVED
                RESERVES

              K
                M
                F A-1 #20

            	
               

              1PVPD

            	
               

              0.989

            	
               

              0.000

            	
               

              0

            	
               

              40.8

            	
               

              29.7

            	
               

              0.0

            	
               

              11.1

            	
               

              10.5

            	
               

              8

            
	
              KMF
                LEASE 2
                #701

            	
              1
                PVPD

            	
              0.383

            	
              0.000

            	
              0

            	
              15.8

            	
              13.9

            	
              0.0

            	
              1.9

            	
              1.9

            	
              9

            
	
              HAMILL
                & HAMILL NO. 10

            	
              1PVPD

            	
              0B000

            	
              0.000

            	
              13

            	
              63.8

            	
              27.0

            	
              0.0

            	
              36.8

            	
              31B7

            	
              18

            
	
              HAMILL
                & HAMILL NO. 17

            	
              1
                PVPD

            	
              0.000

            	
              0.000

            	
              16

            	
              81.5

            	
              17.0

            	
              0.0

            	
              64.5

            	
              60.5

            	
              19

            
	
              HAMILL
                & HAMILL NO. 19

            	
              1
                PVPD

            	
              0.000

            	
              0.000

            	
              11

            	
              55.2

            	
              8.5

            	
              0.0

            	
              46.8

            	
              45.8

            	
              20

            
	
              HAMILL
                & HAMILL NO. 21

            	
              3PVUD

            	
              0.000

            	
              0B000

            	
              88

            	
              448.0

            	
              68.1

            	
              127.0

            	
              252.9

            	
              176.4

            	
              21

            
	
              HAMILL
                & HAMILL NO. 22

               

            	
              3PVUD

               

            	
              0.000

               

            	
              0.000

               

            	
              117

               

            	
              598.9

               

            	
              87.1

               

            	
              127.0

               

            	
              384B9

               

            	
              267B0

               

            	
              22

               

            
	
               

              GRAND
                TOTAL PROVED

               

            	
               

            	
               

              1B372

               

            	
               

              0B000

               

            	
               

              245

               

            	
               

              1304B0

               

            	
               

              251B3

               

            	
               

              254.0

               

            	
               

              798B9

               

            	
               

              593B8

               

            	
               

            
	
               

              POSSIBLE
                RESERVES

               

              HAMILL
                & HAMILL LOO. 1 PST

            	
               

              9PSUD

            	
               

              0.000

            	
               

              0.000

            	
               

              567

            	
               

              2892.3

            	
               

              419B7

            	
               

              171.0

            	
               

              2301.6

            	
               

              839B1

            	
               

              12

            
	
              HAMILL
                & HAMILL LOO. 2
                PST

            	
              9PSUD

            	
              0.000

            	
              0.000

            	
              546

            	
              2783B4

            	
              404B1

            	
              171B0

            	
              2208.2

            	
              806B5

            	
              13

            
	
              HAMILL
                & HAMILL LOO. 3
                PST

            	
              9PSUD

            	
              0.000

            	
              0B000

            	
              284

            	
              1445.9

            	
              209.8

            	
              157.0

            	
              1079.1

            	
              554.2

            	
              14

            
	
              HAMILL
                & HAMILL LOO. 4
                PST

            	
              9PSUD

            	
              0.000

            	
              0.000

            	
              194

            	
              989B0

            	
              143.6

            	
              157.0

            	
              688.4

            	
              390.7

            	
              15

            
	
              HAMILL
                & HAMILL LOO. 5
                PST

            	
              9PSUD

            	
              0.000

            	
              0.000

            	
              380

            	
              1939.6

            	
              281.7

            	
              164.0

            	
              1493.9

            	
              628.2

            	
              16

            
	
              HAMILL
                & HAMILL LOO. 6
                PST

               

            	
              9PSUD

               

            	
              0.000

               

            	
              0B000

               

            	
              94

               

            	
              478.2

               

            	
              69.4

               

            	
              150.0

               

            	
              258.8

               

            	
              162B7

               

            	
              17

               

            
	
               

              GRAND
                TOTAL POSSIBLE

            	
               

            	
               

              0B000

            	
               

              0B000

            	
               

              2065

            	
               

              10528B4

            	
               

              1528B3

            	
               

              970B0

            	
               

              8030.0

            	
               

              3381B4

            	 


    

    


     

    
 

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
       

      
        	
                R.A.LENSER & ASSOCIATES 

                HOUSTON, TEXAS

              	
                TABLE
                  C

                PAGE


                 

              


      

       

AQUATIC
      CELLULOSE INTERNATIONAL CORP.

    SUMMARY
      OF 8/8ths RESERVES AND INCOME DATA

    RANKED
      BY FUTURE NET RESERVES AND INCOME DATA

     

    AS
      OF JANUARY 1, 2005

     

    
      	
            	 	 	 	 	 	 	 	 	 	 
	 	
              NET
                RESERVES 

            	 	 	 	 	 	 
	 LEASE
              / WELL NAME	
              RESERVE

              CATGORY 

            	
               OIL

              MBBLS

            	
               NIL

              MBBLS

            	
              GAS

              MMCF 

            	
               GROSS

              REVENUE

              --M$--

            	
               TOTAL

              EXPENSES

              --M$--

            	
               CAPITAL

              EXPENSE

              ---M$---

            	
               BFINET

              INCOME-

              ---M$---

            	
               DISCNET

              INCOME

              @
                10%

              ----
                M$--

            	
               TABLE

              NUMBER

            


    

     

    
      	
               

               

              PROVED
                RESERVES

               

              HAMILL
                & HAMILL NO. 22

            	
               

              3PVUD

            	
               

              0.000

            	
               

              0.000

            	
               

              117

            	
               

              598.9

            	
               

              87.1

            	
               

              127.0

            	
               

              384.9

            	
               

              267.0

            	
               

              22

            
	
              HAMILL
                & HAMILL NO. 21

            	
              3PVUD

            	
              0.000

            	
              0.000

            	
              88

            	
              448.0

            	
              68.1

            	
              127.0

            	
              252.9

            	
              176.4

            	
              21

            
	
              HAMILL
                & HAMILL NO. 17

            	
              1PVPD

            	
              0.000

            	
              0.000

            	
              16

            	
              81.5

            	
              17.0

            	
              0.0

            	
              64.5

            	
              60.5

            	
              19

            
	
              HAMILL
                & HAMILL NO. 19

            	
              1PVPD

            	
              0.000

            	
              0.000

            	
              11

            	
              55.2

            	
              8.5

            	
              0.0

            	
              46.8

            	
              45.8

            	
              20

            
	
              HAMILL
                & HAMILL NO. 10

            	
              1
                PVPD

            	
              0.000

            	
              0.000

            	
              13

            	
              63.8

            	
              27B0

            	
              0.0

            	
              36.8

            	
              31.7

            	
              18

            
	
              K
                M
                F A-1 #20

            	
              1
                PVPD

            	
              0.989

            	
              0B000

            	
              0

            	
              40.8

            	
              29.7

            	
              0.0

            	
              11.1

            	
              10.5

            	
              8

            
	
              KMF
                LEASE 2
                #701

               

            	
              1
                PVPD

               

            	
              0.383

               

            	
              0.000

               

            	
              0

               

            	
              15.8

               

            	
              13.9

               

            	
              0.0

               

            	
              1.9

               

            	
              1.9

               

            	
              9

               

            
	
               

              GRAND
                TOTAL PROVED

               

            	
               

            	
               

              1B372

               

            	
               

              0B000

               

            	
               

              245

               

            	
               

              1304B0

               

            	
               

              251B3

               

            	
               

              254.0

               

            	
               

              798B9

               

            	
               

              593B8

               

            	
               

            
	
               

              POSSIBLE
                RESERVES

               

              HAMILL
                & HAMILL LOO. 1 PSU

            	
               

              9PSUD

            	
               

              0.000

            	
               

              0.000

            	
               

              567

            	
               

              2892.3

            	
               

              419.7

            	
               

              171B0

            	
               

              2301.6

            	
               

              839.1

            	
               

              12

            
	
              HAMILL
                & HAMILL LOO. 2
                PSU

            	
              9PSUD

            	
              0.000

            	
              0.000

            	
              546

            	
              2783.4

            	
              404.1

            	
              171.0

            	
              2208.2

            	
              806.5

            	
              13

            
	
              HAMILL
                & HAMILL LOO. 5 PSU

            	
              9PSUD

            	
              0.000

            	
              0.000

            	
              380

            	
              1939.6

            	
              281.7

            	
              164.0

            	
              1493.9

            	
              628.2

            	
              16

            
	
              HAMILL
                & HAMILL LOC.B 3
                PSU

            	
              9PSUD

            	
              0B000

            	
              0.000

            	
              284

            	
              1445.9

            	
              209.8

            	
              157.0

            	
              1079.1

            	
              554.2

            	
              14

            
	
              HAMILL
                & HAMILL LOO. 4
                PSU

            	
              9PSUD

            	
              0.000

            	
              0.000

            	
              194

            	
              989.0

            	
              143.6

            	
              157.0

            	
              688.4

            	
              390.7

            	
              15

            
	
              HAMILL
                & HAMILL LOO. 6
                PSU

               

            	
              9PSUD

               

            	
              0.000

               

            	
              0.000

               

            	
              94

               

            	
              478.2

               

            	
              69B4

               

            	
              150.0

               

            	
              258.8

               

            	
              162.7

               

            	
              17

               

            
	
               

              GRAND
                TOTAL POSSIBLE

            	
               

            	
               

              0B000

            	
               

              0B000

            	
               

              2065

            	
               

              10528B4

            	
               

              1528B3

            	
               

              970B0

            	
               

              8030B0

            	
               

              3381.4

            	
               

            


    

     

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   PRADO FLD, JIM HOGG CO, TX                                                                             TABLE    6
   OPERATOR: CENTURY RES INC
   RESERVOIR: GOVERNMENT WELLS MID                                                                      RESERVE TYPE
   K M F A-1 #20                                                                                      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       .4946400   .3957100    .3957100   .0000000           41.25        .00         .00         10.0000        10.537
 FINAL         .4946399   .3957100    .3957100   .0000000           41.25        .00         .00         15.0000        10.272
                                                                                                         20.0000        10.028
 REMARKS                                                                                                 25.0000         9.802
                                                                                                         30.0000         9.593
                                                                                                         35.0000         9.398


                 -------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--
 12-05      1.          1.514           .000             0.           .599           .000             0.        41.25        .00
 12-06      1.           .985           .000             0.           .390           .000             0.        41.25        .00
 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

 Sub-T      1.          2.499           .000             0.           .989           .000             0.        41.25        .00
 After      0.           .000           .000             0.           .000           .000             0.          .00        .00
 Total      1.          2.499           .000             0.           .989           .000             0.        41.25        .00

 Cumulative            80.481           .000             0.
 Ultimate              82.980           .000             0.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05         24713.             0.             0.          0.      24713.            1137.           892.              22684.
 12-06         16081.             0.             0.          0.      16081.             740.           580.              14761.
 12-07
 

       

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

       12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T         40794.             0.             0.          0.      40794.            1877.          1472.              37445.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total         40794.             0.             0.          0.      40794.            1877.          1472.              37445.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05          13723.             0.             0.             0.         13723.          8961.          8961.          8608.
 12-06          12580.             0.             0.             0.         12580.          2182.         11142.          1929.
 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

 Sub-T          26303.             0.             0.             0.         26303.         11142.         11142.         10537.
 After              0.             0.             0.             0.             0.             0.         11142.             0.
 Total          26303.             0.             0.             0.         26303.         11142.         11142.         10537.

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



       

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   PRADO FLD, JIM HOGG CO, TX                                                                             TABLE    7
   OPERATOR: CENTURY RES INC
   RESERVOIR: COMBINED ZONES                                                                            RESERVE TYPE
   KMF LEASE 2 #701                                                                                   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       .4946400   .3957100    .3957100   .0000000           41.25        .00         .00         10.0000         1.853
 FINAL         .4946400   .3957100    .3957100   .0000000           41.25        .00         .00         15.0000         1.828
                                                                                                         20.0000         1.805
 REMARKS                                                                                                 25.0000         1.784
                                                                                                         30.0000         1.763
                                                                                                         35.0000         1.744


                 -------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--
 12-05      1.           .967           .000             0.           .383           .000             0.        41.25        .00
 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

 Sub-T      1.           .967           .000             0.           .383           .000             0.        41.25        .00
 After      0.           .000           .000             0.           .000           .000             0.          .00        .00
 Total      1.           .967           .000             0.           .383           .000             0.        41.25        .00

 Cumulative            19.263           .000             0.
 Ultimate              20.230           .000             0.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05         15783.             0.             0.          0.      15783.             726.           570.              14487.
 

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       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

 Sub-T         15783.             0.             0.          0.      15783.             726.           570.              14487.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total         15783.             0.             0.          0.      15783.             726.           570.              14487.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05          12580.             0.             0.             0.         12580.          1908.          1908.          1853.
 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

 Sub-T          12580.             0.             0.             0.         12580.          1908.          1908.          1853.
 After              0.             0.             0.             0.             0.             0.          1908.             0.
 Total          12580.             0.             0.             0.         12580.          1908.          1908.          1853.

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



      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   PRADO FIELD                                                                                            TABLE 5
   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        12.390
 FINAL                                                                                                   15.0000        12.101
                                                                                                         20.0000        11.833
                                                                                                         25.0000        11.586
                                                                                                         30.0000        11.356
                                                                                                         35.0000        11.142

                 -------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--
 12-05      2.          2.481           .000             0.           .982           .000             0.        41.25        .00
 12-06      1.           .985           .000             0.           .390           .000             0.        41.25        .00
 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

 Sub-T      1.          3.466           .000             0.          1.372           .000             0.        41.25        .00
 After      0.           .000           .000             0.           .000           .000             0.          .00        .00
 Total      1.          3.466           .000             0.          1.372           .000             0.        41.25        .00

 Cumulative            99.744           .000             0.
 Ultimate             103.210           .000             0.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05         40496.             0.             0.          0.      40496.            1863.          1461.              37172.
 12-06         16081.             0.             0.          0.      16081.             740.           580.              14761.
 

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       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

 Sub-T         56577.             0.             0.          0.      56577.            2603.          2042.              51933.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total         56577.             0.             0.          0.      56577.            2603.          2042.              51933.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05          26303.             0.             0.             0.         26303.         10869.         10869.         10461.
 12-06          12580.             0.             0.             0.         12580.          2182.         13050.          1929.
 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

 Sub-T          38883.             0.             0.             0.         38883.         13050.         13050.         12390.
 After              0.             0.             0.             0.             0.             0.         13050.             0.
 Total          38883.             0.             0.             0.         38883.         13050.         13050.         12390.

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



      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT FIELD                                                                                          TABLE 9
   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       137.955
 FINAL                                                                                                   15.0000       133.729
                                                                                                         20.0000       129.944
                                                                                                         25.0000       126.531
                                                                                                         30.0000       123.435
                                                                                                         35.0000       120.611

                 -------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--
 12-05      3.           .000           .000           163.           .000           .000            26.          .00       5.10
 12-06      2.           .000           .000            50.           .000           .000             8.          .00       5.10
 12-07      1.           .000           .000            17.           .000           .000             3.          .00       5.10
 12-08      1.           .000           .000            14.           .000           .000             2.          .00       5.10
 12-09      1.           .000           .000             2.           .000           .000             0.          .00       5.10
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T      2.           .000           .000           246.           .000           .000            39.          .00       5.10
 After      0.           .000           .000             0.           .000           .000             0.          .00        .00
 Total      2.           .000           .000           246.           .000           .000            39.          .00       5.10

 Cumulative              .000           .000           911.
 Ultimate                .000           .000          1157.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05             0.             0.        133299.          0.     133299.            9997.          4664.             118638.
 12-06             0.             0.         40587.          0.      40587.            3044.          1420.              36123.
 

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       12-07             0.             0.         13736.          0.      13736.            1030.           481.              12225.
 12-08             0.             0.         11263.          0.      11263.             845.           394.              10024.
 12-09             0.             0.          1669.          0.       1669.             125.            58.               1486.
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T             0.             0.        200554.          0.     200554.           15042.          7017.             178496.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        200554.          0.     200554.           15042.          7017.             178496.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05          12000.             0.             0.             0.         12000.        106638.        106638.        103178.
 12-06           8000.             0.             0.             0.          8000.         28123.        134761.         24689.
 12-07           4800.             0.             0.             0.          4800.          7425.        142186.          5868.
 12-08           4800.             0.             0.             0.          4800.          5224.        147410.          3755.
 12-09            800.             0.             0.             0.           800.           686.        148096.           465.
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T          30400.             0.             0.             0.         30400.        148096.        148096.        137955.
 After              0.             0.             0.             0.             0.             0.        148096.             0.
 Total          30400.             0.             0.             0.         30400.        148096.        148096.        137955.

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



       

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT FIELD                                                                                          TABLE 10
   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       443.408
 FINAL                                                                                                   15.0000       374.363
                                                                                                         20.0000       318.314
                                                                                                         25.0000       272.364
                                                                                                         30.0000       234.353
                                                                                                         35.0000       202.650

                 -------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--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00
 12-06      1.           .000           .000           313.           .000           .000            50.          .00       5.10
 12-07      2.           .000           .000           299.           .000           .000            48.          .00       5.10
 12-08      2.           .000           .000           286.           .000           .000            46.          .00       5.10
 12-09      2.           .000           .000           308.           .000           .000            49.          .00       5.10
 12-10      1.           .000           .000            78.           .000           .000            12.          .00       5.10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T      1.           .000           .000          1283.           .000           .000           205.          .00       5.10
 After      0.           .000           .000             0.           .000           .000             0.          .00        .00
 Total      1.           .000           .000          1283.           .000           .000           205.          .00       5.10

 Cumulative              .000           .000             0.
 Ultimate                .000           .000          1283.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05             0.             0.             0.          0.          0.               0.             0.                  0.
 12-06             0.             0.        255220.          0.     255220.           19141.          8930.             227149.
 

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       12-07             0.             0.        243872.          0.     243872.           18290.          8533.             217049.
 12-08             0.             0.        233204.          0.     233204.           17490.          8159.             207555.
 12-09             0.             0.        251026.          0.     251026.           18827.          8783.             223416.
 12-10             0.             0.         63606.          0.      63606.            4770.          2225.              56610.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T             0.             0.       1046928.          0.    1046928.           78520.         36630.             931778.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.       1046928.          0.    1046928.           78520.         36630.             931778.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05              0.             0.             0.             0.             0.             0.             0.             0.
 12-06           6800.        240000.             0.             0.        246800.        -19651.        -19651.        -23307.
 12-07           9600.          7000.             0.             0.         16600.        200449.        180797.        157831.
 12-08           9600.          7000.             0.             0.         16600.        190955.        371752.        137212.
 12-09           9600.             0.             0.             0.          9600.        213816.        585568.        140270.
 12-10           4400.             0.             0.             0.          4400.         52210.        637778.         31402.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T          40000.        254000.             0.             0.        294000.        637778.        637778.        443408.
 After              0.             0.             0.             0.             0.             0.        637778.             0.
 Total          40000.        254000.             0.             0.        294000.        637778.        637778.        443408.

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



       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT FIELD                                                                                          TABLE 8
   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       581.363
 FINAL                                                                                                   15.0000       508.092
                                                                                                         20.0000       448.258
                                                                                                         25.0000       398.895
                                                                                                         30.0000       357.788
                                                                                                         35.0000       323.261

                 -------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--
 12-05      3.           .000           .000           163.           .000           .000            26.          .00       5.10
 12-06      3.           .000           .000           363.           .000           .000            58.          .00       5.10
 12-07      3.           .000           .000           316.           .000           .000            51.          .00       5.10
 12-08      3.           .000           .000           300.           .000           .000            48.          .00       5.10
 12-09      2.           .000           .000           310.           .000           .000            50.          .00       5.10
 12-10      1.           .000           .000            78.           .000           .000            12.          .00       5.10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T      3.           .000           .000          1529.           .000           .000           245.          .00       5.10
 After      0.           .000           .000             0.           .000           .000             0.          .00        .00
 Total      3.           .000           .000          1529.           .000           .000           245.          .00       5.10

 Cumulative              .000           .000           911.
 Ultimate                .000           .000          2440.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05             0.             0.        133299.          0.     133299.            9997.          4664.             118638.
 12-06             0.             0.        295807.          0.     295807.           22185.         10350.             263271.


       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       12-07             0.             0.        257607.          0.     257607.           19321.          9013.             229274.
 12-08             0.             0.        244468.          0.     244468.           18335.          8553.             217579.
 12-09             0.             0.        252695.          0.     252695.           18952.          8841.             224902.
 12-10             0.             0.         63606.          0.      63606.            4770.          2225.              56610.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T             0.             0.       1247482.          0.    1247482.           93561.         43647.            1110274.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.       1247482.          0.    1247482.           93561.         43647.            1110274.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05          12000.             0.             0.             0.         12000.        106638.        106638.        103178.
 12-06          14800.        240000.             0.             0.        254800.          8471.        115110.          1382.
 12-07          14400.          7000.             0.             0.         21400.        207874.        322983.        163699.
 12-08          14400.          7000.             0.             0.         21400.        196179.        519162.        140967.
 12-09          10400.             0.             0.             0.         10400.        214502.        733664.        140735.
 12-10           4400.             0.             0.             0.          4400.         52210.        785874.         31402.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T          70400.        254000.             0.             0.        324400.        785874.        785874.        581363.
 After              0.             0.             0.             0.             0.             0.        785874.             0.
 Total          70400.        254000.             0.             0.        324400.        785874.        785874.        581363.

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



       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT FIELD                                                                                          TABLE  11
   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      3381.313
 FINAL                                                                                                   15.0000      2406.486
                                                                                                         20.0000      1787.106
                                                                                                         25.0000      1371.250
                                                                                                         30.0000      1079.377
                                                                                                         35.0000       867.067

                 -------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--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00
 12-06      0.           .000           .000           143.           .000           .000            23.          .00       5.10
 12-07      4.           .000           .000          1156.           .000           .000           185.          .00       5.10
 12-08      6.           .000           .000          1398.           .000           .000           224.          .00       5.10
 12-09      6.           .000           .000           945.           .000           .000           151.          .00       5.10
 12-10      6.           .000           .000           641.           .000           .000           103.          .00       5.10
 12-11      5.           .000           .000           456.           .000           .000            73.          .00       5.10
 12-12      5.           .000           .000          1306.           .000           .000           209.          .00       5.10
 12-13      5.           .000           .000          1051.           .000           .000           168.          .00       5.10
 12-14      5.           .000           .000           694.           .000           .000           111.          .00       5.10
 12-15      4.           .000           .000           456.           .000           .000            73.          .00       5.10
 12-16      4.           .000           .000           419.           .000           .000            67.          .00       5.10
 12-17      4.           .000           .000           657.           .000           .000           105.          .00       5.10
 12-18      3.           .000           .000           720.           .000           .000           115.          .00       5.10
 12-19      3.           .000           .000           502.           .000           .000            80.          .00       5.10

 Sub-T      4.           .000           .000         10546.           .000           .000          1687.          .00       5.10
 After      2.           .000           .000          2356.           .000           .000           377.          .00       5.10
 Total      3.           .000           .000         12903.           .000           .000          2064.          .00       5.10

 Cumulative              .000           .000             0.
 Ultimate                .000           .000         12903.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05             0.             0.             0.          0.          0.               0.             0.                  0.
 12-06             0.             0.        116691.          0.     116691.            8752.          4083.             103856.
 

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       12-07             0.             0.        943703.          0.     943703.           70778.         33018.             839907.
 12-08             0.             0.       1140723.          0.    1140723.           85554.         39912.            1015257.
 12-09             0.             0.        771426.          0.     771426.           57857.         26991.             686579.
 12-10             0.             0.        523437.          0.     523437.           39258.         18314.             465865.
 12-11             0.             0.        371884.          0.     371884.           27891.         13012.             330981.
 12-12             0.             0.       1065313.          0.    1065313.           79898.         37273.             948142.
 12-13             0.             0.        857996.          0.     857996.           64350.         30020.             763626.
 12-14             0.             0.        566564.          0.     566564.           42492.         19823.             504249.
 12-15             0.             0.        372333.          0.     372333.           27925.         13027.             331381.
 12-16             0.             0.        342216.          0.     342216.           25666.         11973.             304576.
 12-17             0.             0.        536201.          0.     536201.           40215.         18761.             477225.
 12-18             0.             0.        587746.          0.     587746.           44081.         20564.             523101.
 12-19             0.             0.        409425.          0.     409425.           30707.         14325.             364393.

 Sub-T             0.             0.       8605658.          0.    8605658.          645424.        301096.            7659138.
 After             0.             0.       1922783.          0.    1922783.          144209.         67275.            1711300.
 Total             0.             0.      10528440.          0.   10528440.          789633.        368370.            9370438.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05              0.             0.             0.             0.             0.             0.             0.             0.
 12-06           2000.        300000.             0.             0.        302000.       -198144.       -198144.       -167585.
 12-07          18400.        600000.             0.             0.        618400.        221507.         23363.        171825.
 12-08          28800.             0.             0.             0.         28800.        986457.       1009821.        709165.
 12-09          28800.             0.             0.             0.         28800.        657779.       1667599.        429896.
 12-10          28800.             0.             0.             0.         28800.        437065.       2104664.        259689.
 12-11          26000.         14000.             0.             0.         40000.        290981.       2395645.        156834.
 12-12          24000.         21000.             0.             0.         45000.        903142.       3298786.        440695.
 12-13          24000.             0.             0.             0.         24000.        739627.       4038413.        330168.
 12-14          22400.             0.             0.             0.         22400.        481849.       4520262.        195687.
 12-15          19200.             0.             0.             0.         19200.        312181.       4832443.        115130.
 12-16          19200.          7000.             0.             0.         26200.        278376.       5110819.         92589.
 12-17          18000.         14000.             0.             0.         32000.        445225.       5556044.        134465.
 12-18          14400.             0.             0.             0.         14400.        508701.       6064745.        140960.
 12-19          14400.             0.             0.             0.         14400.        349993.       6414738.         88168.

 Sub-T         288400.        956000.             0.             0.       1244400.       6414738.       6414738.       3097686.
 After          82000.         14000.             0.             0.         96000.       1615300.       8030038.        283627.
 Total         370400.        970000.             0.             0.       1340400.       8030038.       8030038.       3381313.

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



      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   18
   OPERATOR: CENTURY RES INC
   RESERVOIR: MIOCENE 3435                                                                              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       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000        31.663
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000        29.624
                                                                                                         20.0000        27.858
 REMARKS                                                                                                 25.0000        26.314
                                                                                                         30.0000        24.956
                                                                                                         35.0000        23.753


                 -------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--
 12-05      1.           .000           .000            25.           .000           .000             4.          .00       5.10
 12-06      1.           .000           .000            21.           .000           .000             3.          .00       5.10
 12-07      1.           .000           .000            17.           .000           .000             3.          .00       5.10
 12-08      1.           .000           .000            14.           .000           .000             2.          .00       5.10
 12-09      1.           .000           .000             2.           .000           .000             0.          .00       5.10
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T      1.           .000           .000            78.           .000           .000            13.          .00       5.10
 After      0.           .000           .000             0.           .000           .000             0.          .00        .00
 Total      1.           .000           .000            78.           .000           .000            13.          .00       5.10

 Cumulative              .000           .000           772.
 Ultimate                .000           .000           850.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05             0.             0.         20428.          0.      20428.            1532.           715.              18181.
 12-06             0.             0.         16751.          0.      16751.            1256.           586.              14908.


       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       12-07             0.             0.         13736.          0.      13736.            1030.           481.              12225.
 12-08             0.             0.         11263.          0.      11263.             845.           394.              10024.
 12-09             0.             0.          1669.          0.       1669.             125.            58.               1486.
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T             0.             0.         63846.          0.      63846.            4788.          2234.              56824.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.         63846.          0.      63846.            4788.          2234.              56824.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05           4800.             0.             0.             0.          4800.         13381.         13381.         12790.
 12-06           4800.             0.             0.             0.          4800.         10108.         23489.          8785.
 12-07           4800.             0.             0.             0.          4800.          7425.         30914.          5868.
 12-08           4800.             0.             0.             0.          4800.          5224.         36138.          3755.
 12-09            800.             0.             0.             0.           800.           686.         36824.           465.
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T          20000.             0.             0.             0.         20000.         36824.         36824.         31663.
 After              0.             0.             0.             0.             0.             0.         36824.             0.
 Total          20000.             0.             0.             0.         20000.         36824.         36824.         31663.

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


      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   19
   OPERATOR: 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       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000        60.463
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000        58.705
                                                                                                         20.0000        57.092
 REMARKS                                                                                                 25.0000        55.607
                                                                                                         30.0000        54.234
                                                                                                         35.0000        52.960


                 -------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--
 12-05      1.           .000           .000            71.           .000           .000            11.          .00       5.10
 12-06      1.           .000           .000            29.           .000           .000             5.          .00       5.10
 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

 Sub-T      1.           .000           .000           100.           .000           .000            16.          .00       5.10
 After      0.           .000           .000             0.           .000           .000             0.          .00        .00
 Total      1.           .000           .000           100.           .000           .000            16.          .00       5.10

 Cumulative              .000           .000             0.
 Ultimate                .000           .000           100.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05             0.             0.         57628.          0.      57628.            4322.          2016.              51289.


       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

       12-06             0.             0.         23836.          0.      23836.            1788.           834.              21214.
 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

 Sub-T             0.             0.         81464.          0.      81464.            6110.          2850.              72504.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.         81464.          0.      81464.            6110.          2850.              72504.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05           4800.             0.             0.             0.          4800.         46489.         46489.         44559.
 12-06           3200.             0.             0.             0.          3200.         18014.         64504.         15904.
 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

 Sub-T           8000.             0.             0.             0.          8000.         64504.         64504.         60463.
 After              0.             0.             0.             0.             0.             0.         64504.             0.
 Total           8000.             0.             0.             0.          8000.         64504.         64504.         60463.

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


      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   20
   OPERATOR: CENTURY RES INC
   RESERVOIR: 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       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000        45.829
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000        45.400
                                                                                                         20.0000        44.994
 REMARKS                                                                                                 25.0000        44.610
                                                                                                         30.0000        44.245
                                                                                                         35.0000        43.898


                 -------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--
 12-05      1.           .000           .000            68.           .000           .000            11.          .00       5.10
 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

 Sub-T      1.           .000           .000            68.           .000           .000            11.          .00       5.10
 After      0.           .000           .000             0.           .000           .000             0.          .00        .00
 Total      1.           .000           .000            68.           .000           .000            11.          .00       5.10

 Cumulative              .000           .000           139.
 Ultimate                .000           .000           207.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05             0.             0.         55244.          0.      55244.            4143.          1933.              49168.
 

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       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

 Sub-T             0.             0.         55244.          0.      55244.            4143.          1933.              49168.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.         55244.          0.      55244.            4143.          1933.              49168.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05           2400.             0.             0.             0.          2400.         46768.         46768.         45829.
 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

 Sub-T           2400.             0.             0.             0.          2400.         46768.         46768.         45829.
 After              0.             0.             0.             0.             0.             0.         46768.             0.
 Total           2400.             0.             0.             0.          2400.         46768.         46768.         45829.

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


      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   21
   OPERATOR: 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       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000       176.408
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000       148.747
                                                                                                         20.0000       126.079
 REMARKS                                                                                                 25.0000       107.341
                                                                                                         30.0000        91.730
                                                                                                         35.0000        78.631


                 -------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--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00
 12-06      1.           .000           .000           142.           .000           .000            23.          .00       5.10
 12-07      1.           .000           .000           132.           .000           .000            21.          .00       5.10
 12-08      1.           .000           .000           181.           .000           .000            29.          .00       5.10
 12-09      1.           .000           .000            90.           .000           .000            14.          .00       5.10
 12-10      1.           .000           .000             3.           .000           .000             1.          .00       5.10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T      1.           .000           .000           549.           .000           .000            88.          .00       5.10
 After      0.           .000           .000             0.           .000           .000             0.          .00        .00
 Total      1.           .000           .000           549.           .000           .000            88.          .00       5.10

 Cumulative              .000           .000             0.
 Ultimate                .000           .000           549.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05             0.             0.             0.          0.          0.               0.             0.                  0.


       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

       12-06             0.             0.        115738.          0.     115738.            8680.          4049.             103009.
 12-07             0.             0.        107921.          0.     107921.            8094.          3776.              96051.
 12-08             0.             0.        148026.          0.     148026.           11102.          5179.             131745.
 12-09             0.             0.         73678.          0.      73678.            5526.          2578.              65575.
 12-10             0.             0.          2620.          0.       2620.             196.            92.               2332.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T             0.             0.        447984.          0.     447984.           33599.         15674.             398711.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        447984.          0.     447984.           33599.         15674.             398711.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05              0.             0.             0.             0.             0.             0.             0.             0.
 12-06           4000.        120000.             0.             0.        124000.        -20991.        -20991.        -21788.
 12-07           4800.          7000.             0.             0.         11800.         84251.         63260.         65688.
 12-08           4800.             0.             0.             0.          4800.        126945.        190204.         91487.
 12-09           4800.             0.             0.             0.          4800.         60775.        250979.         39826.
 12-10            400.             0.             0.             0.           400.          1932.        252911.          1195.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T          18800.        127000.             0.             0.        145800.        252911.        252911.        176408.
 After              0.             0.             0.             0.             0.             0.        252911.             0.
 Total          18800.        127000.             0.             0.        145800.        252911.        252911.        176408.

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



      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   22
   OPERATOR: 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       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000       266.999
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000       225.616
                                                                                                         20.0000       192.235
 REMARKS                                                                                                 25.0000       165.023
                                                                                                         30.0000       142.622
                                                                                                         35.0000       124.019


                 -------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--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00
 12-06      1.           .000           .000           171.           .000           .000            27.          .00       5.10
 12-07      1.           .000           .000           167.           .000           .000            27.          .00       5.10
 12-08      1.           .000           .000           104.           .000           .000            17.          .00       5.10
 12-09      1.           .000           .000           217.           .000           .000            35.          .00       5.10
 12-10      1.           .000           .000            75.           .000           .000            12.          .00       5.10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T      1.           .000           .000           734.           .000           .000           117.          .00       5.10
 After      0.           .000           .000             0.           .000           .000             0.          .00        .00
 Total      1.           .000           .000           734.           .000           .000           117.          .00       5.10

 Cumulative              .000           .000             0.
 Ultimate                .000           .000           734.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05             0.             0.             0.          0.          0.               0.             0.                  0.


       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

       12-06             0.             0.        139481.          0.     139481.           10461.          4880.             124140.
 12-07             0.             0.        135950.          0.     135950.           10196.          4757.             120997.
 12-08             0.             0.         85179.          0.      85179.            6388.          2980.              75810.
 12-09             0.             0.        177347.          0.     177347.           13301.          6205.             157841.
 12-10             0.             0.         60986.          0.      60986.            4574.          2134.              54278.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T             0.             0.        598944.          0.     598944.           44921.         20956.             533067.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        598944.          0.     598944.           44921.         20956.             533067.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05              0.             0.             0.             0.             0.             0.             0.             0.
 12-06           2800.        120000.             0.             0.        122800.          1340.          1340.         -1519.
 12-07           4800.             0.             0.             0.          4800.        116197.        117538.         92142.
 12-08           4800.          7000.             0.             0.         11800.         64010.        181548.         45725.
 12-09           4800.             0.             0.             0.          4800.        153041.        334589.        100444.
 12-10           4000.             0.             0.             0.          4000.         50278.        384867.         30207.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T          21200.        127000.             0.             0.        148200.        384867.        384867.        267000.
 After              0.             0.             0.             0.             0.             0.        384867.             0.
 Total          21200.        127000.             0.             0.        148200.        384867.        384867.        267000.

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

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   GRAND TOTAL                                                                                            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       150.345
 FINAL                                                                                                   15.0000       145.830
                                                                                                         20.0000       141.778
                                                                                                         25.0000       138.117
                                                                                                         30.0000       134.791
                                                                                                         35.0000       131.753

                 -------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--
 12-05      4.          2.481           .000           163.           .982           .000            26.        41.25       5.10
 12-06      3.           .985           .000            50.           .390           .000             8.        41.25       5.10
 12-07      1.           .000           .000            17.           .000           .000             3.          .00       5.10
 12-08      1.           .000           .000            14.           .000           .000             2.          .00       5.10
 12-09      1.           .000           .000             2.           .000           .000             0.          .00       5.10
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T      2.          3.466           .000           246.          1.372           .000            39.        41.25       5.10
 After      0.           .000           .000             0.           .000           .000             0.          .00        .00
 Total      2.          3.466           .000           246.          1.372           .000            39.        41.25       5.10

 Cumulative            99.744           .000           911.
 Ultimate             103.210           .000          1157.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05         40496.             0.        133299.          0.     173795.           11860.          6125.             155810.


       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

       12-06         16081.             0.         40587.          0.      56668.            3784.          2000.              50884.
 12-07             0.             0.         13736.          0.      13736.            1030.           481.              12225.
 12-08             0.             0.         11263.          0.      11263.             845.           394.              10024.
 12-09             0.             0.          1669.          0.       1669.             125.            58.               1486.
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T         56577.             0.        200554.          0.     257131.           17644.          9059.             230429.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total         56577.             0.        200554.          0.     257131.           17644.          9059.             230429.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05          38303.             0.             0.             0.         38303.        117507.        117507.        113639.
 12-06          20580.             0.             0.             0.         20580.         30304.        147811.         26618.
 12-07           4800.             0.             0.             0.          4800.          7425.        155236.          5868.
 12-08           4800.             0.             0.             0.          4800.          5224.        160460.          3755.
 12-09            800.             0.             0.             0.           800.           686.        161146.           465.
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T          69283.             0.             0.             0.         69283.        161146.        161146.        150345.
 After              0.             0.             0.             0.             0.             0.        161146.             0.
 Total          69283.             0.             0.             0.         69283.        161146.        161146.        150345.

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


      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   GRAND TOTAL                                                                                            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       443.408
 FINAL                                                                                                   15.0000       374.363
                                                                                                         20.0000       318.314
                                                                                                         25.0000       272.364
                                                                                                         30.0000       234.353
                                                                                                         35.0000       202.650

                 -------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--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00


       

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

      

       12-06      1.           .000           .000           313.           .000           .000            50.          .00       5.10
 12-07      2.           .000           .000           299.           .000           .000            48.          .00       5.10
 12-08      2.           .000           .000           286.           .000           .000            46.          .00       5.10
 12-09      2.           .000           .000           308.           .000           .000            49.          .00       5.10
 12-10      1.           .000           .000            78.           .000           .000            12.          .00       5.10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T      1.           .000           .000          1283.           .000           .000           205.          .00       5.10
 After      0.           .000           .000             0.           .000           .000             0.          .00        .00
 Total      1.           .000           .000          1283.           .000           .000           205.          .00       5.10

 Cumulative              .000           .000             0.
 Ultimate                .000           .000          1283.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05             0.             0.             0.          0.          0.               0.             0.                  0.


       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

       12-06             0.             0.        255220.          0.     255220.           19141.          8930.             227149.
 12-07             0.             0.        243872.          0.     243872.           18290.          8533.             217049.
 12-08             0.             0.        233204.          0.     233204.           17490.          8159.             207555.
 12-09             0.             0.        251026.          0.     251026.           18827.          8783.             223416.
 12-10             0.             0.         63606.          0.      63606.            4770.          2225.              56610.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T             0.             0.       1046928.          0.    1046928.           78520.         36630.             931778.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.       1046928.          0.    1046928.           78520.         36630.             931778.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05              0.             0.             0.             0.             0.             0.             0.             0.
 12-06           6800.        240000.             0.             0.        246800.        -19651.        -19651.        -23307.
 12-07           9600.          7000.             0.             0.         16600.        200449.        180797.        157831.
 12-08           9600.          7000.             0.             0.         16600.        190955.        371752.        137212.
 12-09           9600.             0.             0.             0.          9600.        213816.        585568.        140270.
 12-10           4400.             0.             0.             0.          4400.         52210.        637778.         31402.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T          40000.        254000.             0.             0.        294000.        637778.        637778.        443408.
 After              0.             0.             0.             0.             0.             0.        637778.             0.
 Total          40000.        254000.             0.             0.        294000.        637778.        637778.        443408.

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



      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   GRAND TOTAL                                                                                            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       593.753
 FINAL                                                                                                   15.0000       520.193
                                                                                                         20.0000       460.092
                                                                                                         25.0000       410.481
                                                                                                         30.0000       369.143
                                                                                                         35.0000       334.403

                 -------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--
 12-05      4.          2.481           .000           163.           .982           .000            26.        41.25       5.10
 12-06      4.           .985           .000           363.           .390           .000            58.        41.25       5.10
 12-07      3.           .000           .000           316.           .000           .000            51.          .00       5.10
 12-08      3.           .000           .000           300.           .000           .000            48.          .00       5.10
 12-09      2.           .000           .000           310.           .000           .000            50.          .00       5.10
 12-10      1.           .000           .000            78.           .000           .000            12.          .00       5.10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T      3.          3.466           .000          1529.          1.372           .000           245.        41.25       5.10
 After      0.           .000           .000             0.           .000           .000             0.          .00        .00
 Total      3.          3.466           .000          1529.          1.372           .000           245.        41.25       5.10

 Cumulative            99.744           .000           911.
 Ultimate             103.210           .000          2440.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05         40496.             0.        133299.          0.     173795.           11860.          6125.             155810.
 12-06         16081.             0.        295807.          0.     311888.           22925.         10930.             278033.


       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

       12-07             0.             0.        257607.          0.     257607.           19321.          9013.             229274.
 12-08             0.             0.        244468.          0.     244468.           18335.          8553.             217579.
 12-09             0.             0.        252695.          0.     252695.           18952.          8841.             224902.
 12-10             0.             0.         63606.          0.      63606.            4770.          2225.              56610.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T         56577.             0.       1247482.          0.    1304059.           96164.         45689.            1162207.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total         56577.             0.       1247482.          0.    1304059.           96164.         45689.            1162207.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05          38303.             0.             0.             0.         38303.        117507.        117507.        113639.
 12-06          27380.        240000.             0.             0.        267380.         10653.        128160.          3312.
 12-07          14400.          7000.             0.             0.         21400.        207874.        336033.        163699.
 12-08          14400.          7000.             0.             0.         21400.        196179.        532212.        140967.
 12-09          10400.             0.             0.             0.         10400.        214502.        746714.        140735.
 12-10           4400.             0.             0.             0.          4400.         52210.        798924.         31402.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T         109283.        254000.             0.             0.        363283.        798924.        798924.        593753.
 After              0.             0.             0.             0.             0.             0.        798924.             0.
 Total         109283.        254000.             0.             0.        363283.        798924.        798924.        593753.

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



      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   12
   OPERATOR: 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       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000       839.102
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000       573.540
                                                                                                         20.0000       415.793
 REMARKS    ESTIMATE WELL DRILLED & ON PRODUCTION 04/2006                                                25.0000       315.219
                                                                                                         30.0000       247.234
                                                                                                         35.0000       199.037


                 -------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--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00
 12-06      1.           .000           .000           113.           .000           .000            18.          .00       5.10
 12-07      1.           .000           .000           272.           .000           .000            44.          .00       5.10
 12-08      1.           .000           .000           193.           .000           .000            31.          .00       5.10
 12-09      1.           .000           .000           138.           .000           .000            22.          .00       5.10
 12-10      1.           .000           .000            98.           .000           .000            16.          .00       5.10
 12-11      1.           .000           .000            94.           .000           .000            15.          .00       5.10
 12-12      1.           .000           .000           299.           .000           .000            48.          .00       5.10
 12-13      1.           .000           .000           217.           .000           .000            35.          .00       5.10
 12-14      1.           .000           .000           157.           .000           .000            25.          .00       5.10
 12-15      1.           .000           .000           114.           .000           .000            18.          .00       5.10
 12-16      1.           .000           .000            82.           .000           .000            13.          .00       5.10
 12-17      1.           .000           .000           198.           .000           .000            32.          .00       5.10
 12-18      1.           .000           .000           258.           .000           .000            41.          .00       5.10
 12-19      1.           .000           .000           183.           .000           .000            29.          .00       5.10

 Sub-T      1.           .000           .000          2416.           .000           .000           387.          .00       5.10
 After      1.           .000           .000          1128.           .000           .000           181.          .00       5.10
 Total      1.           .000           .000          3545.           .000           .000           567.          .00       5.10

 Cumulative              .000           .000             0.
 Ultimate                .000           .000          3545.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05             0.             0.             0.          0.          0.               0.             0.                  0.


       

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

       12-06             0.             0.         92555.          0.      92555.            6942.          3238.              82375.
 12-07             0.             0.        222116.          0.     222116.           16659.          7771.             197685.
 12-08             0.             0.        157890.          0.     157890.           11842.          5524.             140524.
 12-09             0.             0.        112236.          0.     112236.            8418.          3927.              99891.
 12-10             0.             0.         79783.          0.      79783.            5984.          2791.              71008.
 12-11             0.             0.         76844.          0.      76844.            5763.          2689.              68392.
 12-12             0.             0.        244334.          0.     244334.           18325.          8549.             217460.
 12-13             0.             0.        176843.          0.     176843.           13263.          6187.             157392.
 12-14             0.             0.        127994.          0.     127994.            9600.          4478.             113916.
 12-15             0.             0.         92639.          0.      92639.            6948.          3241.              82450.
 12-16             0.             0.         67050.          0.      67050.            5029.          2346.              59675.
 12-17             0.             0.        161316.          0.     161316.           12099.          5644.             143573.
 12-18             0.             0.        210228.          0.     210228.           15767.          7355.             187105.
 12-19             0.             0.        149729.          0.     149729.           11230.          5239.             133260.

 Sub-T             0.             0.       1971555.          0.    1971555.          147867.         68981.            1754708.
 After             0.             0.        920765.          0.     920765.           69057.         32216.             819491.
 Total             0.             0.       2892320.          0.    2892320.          216924.        101197.            2574199.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05              0.             0.             0.             0.             0.             0.             0.             0.
 12-06           1600.        150000.             0.             0.        151600.        -69225.        -69225.        -60121.
 12-07           4800.             0.             0.             0.          4800.        192885.        123661.        152467.
 12-08           4800.             0.             0.             0.          4800.        135724.        259385.         97533.
 12-09           4800.             0.             0.             0.          4800.         95091.        354477.         62124.
 12-10           4800.             0.             0.             0.          4800.         66208.        420684.         39324.
 12-11           4800.          7000.             0.             0.         11800.         56592.        477276.         30275.
 12-12           4800.             0.             0.             0.          4800.        212660.        689937.        104360.
 12-13           4800.             0.             0.             0.          4800.        152592.        842529.         68076.
 12-14           4800.             0.             0.             0.          4800.        109116.        951645.         44256.
 12-15           4800.             0.             0.             0.          4800.         77650.       1029295.         28632.
 12-16           4800.             0.             0.             0.          4800.         54875.       1084170.         18396.
 12-17           4800.          7000.             0.             0.         11800.        131773.       1215942.         39375.
 12-18           4800.             0.             0.             0.          4800.        182305.       1398248.         50507.
 12-19           4800.             0.             0.             0.          4800.        128460.       1526708.         32355.

 Sub-T          64000.        164000.             0.             0.        228000.       1526708.       1526708.        707560.
 After          37600.          7000.             0.             0.         44600.        774891.       2301599.        131542.
 Total         101600.        171000.             0.             0.        272600.       2301599.       2301599.        839102.

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



      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   13
   OPERATOR: 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       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000       806.453
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000       548.447
                                                                                                         20.0000       394.817
 REMARKS    ESTIMATE WELL DRILLED & ON PRODUCTION 04/2006                                                25.0000       296.919
                                                                                                         30.0000       230.912
                                                                                                         35.0000       184.305


                 -------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--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00


      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

       12-06      1.           .000           .000            30.           .000           .000             5.          .00       5.10
 12-07      1.           .000           .000           296.           .000           .000            47.          .00       5.10
 12-08      1.           .000           .000           211.           .000           .000            34.          .00       5.10
 12-09      1.           .000           .000           150.           .000           .000            24.          .00       5.10
 12-10      1.           .000           .000           106.           .000           .000            17.          .00       5.10
 12-11      1.           .000           .000            76.           .000           .000            12.          .00       5.10
 12-12      1.           .000           .000           273.           .000           .000            44.          .00       5.10
 12-13      1.           .000           .000           235.           .000           .000            38.          .00       5.10
 12-14      1.           .000           .000           170.           .000           .000            27.          .00       5.10
 12-15      1.           .000           .000           123.           .000           .000            20.          .00       5.10
 12-16      1.           .000           .000            89.           .000           .000            14.          .00       5.10
 12-17      1.           .000           .000           136.           .000           .000            22.          .00       5.10
 12-18      1.           .000           .000           268.           .000           .000            43.          .00       5.10
 12-19      1.           .000           .000           180.           .000           .000            29.          .00       5.10

 Sub-T      1.           .000           .000          2344.           .000           .000           375.          .00       5.10
 After      1.           .000           .000          1067.           .000           .000           171.          .00       5.10
 Total      1.           .000           .000          3411.           .000           .000           546.          .00       5.10

 Cumulative              .000           .000             0.
 Ultimate                .000           .000          3411.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05             0.             0.             0.          0.          0.               0.             0.                  0.
 12-06             0.             0.         24135.          0.      24135.            1810.           844.              21481.
 12-07             0.             0.        241899.          0.     241899.           18142.          8464.             215293.
 12-08             0.             0.        171954.          0.     171954.           12897.          6016.             153041.
 12-09             0.             0.        122233.          0.     122233.            9167.          4277.             108789.
 12-10             0.             0.         86889.          0.      86889.            6517.          3040.              77332.
 12-11             0.             0.         61765.          0.      61765.            4632.          2161.              54971.
 12-12             0.             0.        222994.          0.     222994.           16725.          7802.             198467.
 12-13             0.             0.        191728.          0.     191728.           14380.          6708.             170640.
 12-14             0.             0.        138768.          0.     138768.           10408.          4855.             123505.
 12-15             0.             0.        100437.          0.     100437.            7533.          3514.              89390.
 12-16             0.             0.         72693.          0.      72693.            5452.          2543.              64698.
 12-17             0.             0.        110897.          0.     110897.            8317.          3880.              98699.
 12-18             0.             0.        219076.          0.     219076.           16431.          7665.             194981.
 12-19             0.             0.        146851.          0.     146851.           11014.          5138.             130699.

 Sub-T             0.             0.       1912320.          0.    1912320.          143424.         66908.            1701988.
 After             0.             0.        871056.          0.     871056.           65329.         30477.             775250.
 Total             0.             0.       2783376.          0.    2783376.          208753.         97385.            2477238.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05              0.             0.             0.             0.             0.             0.             0.             0.
 12-06            400.        150000.             0.             0.        150400.       -128919.       -128919.       -107464.
 12-07           4800.             0.             0.             0.          4800.        210493.         81574.        166384.
 12-08           4800.             0.             0.             0.          4800.        148241.        229815.        106527.
 12-09           4800.             0.             0.             0.          4800.        103989.        333803.         67936.
 12-10           4800.             0.             0.             0.          4800.         72532.        406336.         43080.
 12-11           4800.             0.             0.             0.          4800.         50171.        456507.         27092.
 12-12           4800.          7000.             0.             0.         11800.        186667.        643174.         90817.
 12-13           4800.             0.             0.             0.          4800.        165840.        809015.         73986.
 12-14           4800.             0.             0.             0.          4800.        118705.        927720.         48145.
 12-15           4800.             0.             0.             0.          4800.         84590.       1012310.         31191.
 12-16           4800.             0.             0.             0.          4800.         59898.       1072208.         20079.
 12-17           4800.          7000.             0.             0.         11800.         86899.       1159107.         25941.
 12-18           4800.             0.             0.             0.          4800.        190181.       1349288.         52714.
 12-19           4800.             0.             0.             0.          4800.        125899.       1475187.         31726.

 Sub-T          62800.        164000.             0.             0.        226800.       1475187.       1475187.        678156.
 After          35200.          7000.             0.             0.         42200.        733050.       2208237.        128297.
 Total          98000.        171000.             0.             0.        269000.       2208237.       2208237.        806453.

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

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   14
   OPERATOR: 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       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000       554.199
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000       414.131
                                                                                                         20.0000       316.731
 REMARKS    ESTIMATE WELL DRILLED & ON PRODUCTION 04/2006                                                25.0000       247.185
                                                                                                         30.0000       196.335
                                                                                                         35.0000       158.354


                 -------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--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00


      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

       12-06      0.           .000           .000             0.           .000           .000             0.          .00        .00
 12-07      1.           .000           .000           257.           .000           .000            41.          .00       5.10
 12-08      1.           .000           .000           219.           .000           .000            35.          .00       5.10
 12-09      1.           .000           .000           150.           .000           .000            24.          .00       5.10
 12-10      1.           .000           .000           102.           .000           .000            16.          .00       5.10
 12-11      1.           .000           .000            95.           .000           .000            15.          .00       5.10
 12-12      1.           .000           .000           302.           .000           .000            48.          .00       5.10
 12-13      1.           .000           .000           223.           .000           .000            36.          .00       5.10
 12-14      1.           .000           .000           164.           .000           .000            26.          .00       5.10
 12-15      1.           .000           .000           121.           .000           .000            19.          .00       5.10
 12-16      1.           .000           .000            89.           .000           .000            14.          .00       5.10
 12-17      1.           .000           .000            51.           .000           .000             8.          .00       5.10
 12-18
 12-19

 Sub-T      1.           .000           .000          1772.           .000           .000           284.          .00       5.10
 After      0.           .000           .000             0.           .000           .000             0.          .00        .00
 Total      1.           .000           .000          1772.           .000           .000           284.          .00       5.10

 Cumulative              .000           .000             0.
 Ultimate                .000           .000          1772.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05             0.             0.             0.          0.          0.               0.             0.                  0.
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.        209927.          0.     209927.           15745.          7345.             186838.
 12-08             0.             0.        178339.          0.     178339.           13375.          6240.             158723.
 12-09             0.             0.        122107.          0.     122107.            9158.          4272.             108677.
 12-10             0.             0.         83605.          0.      83605.            6270.          2925.              74410.
 12-11             0.             0.         77428.          0.      77428.            5807.          2709.              68912.
 12-12             0.             0.        246680.          0.     246680.           18501.          8631.             219548.
 12-13             0.             0.        181630.          0.     181630.           13622.          6355.             161653.
 12-14             0.             0.        133733.          0.     133733.           10030.          4679.             119024.
 12-15             0.             0.         98467.          0.      98467.            7385.          3445.              87637.
 12-16             0.             0.         72501.          0.      72501.            5438.          2537.              64527.
 12-17             0.             0.         41528.          0.      41528.            3115.          1453.              36960.
 12-18
 12-19

 Sub-T             0.             0.       1445946.          0.    1445946.          108446.         50591.            1286909.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.       1445946.          0.    1445946.          108446.         50591.            1286909.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05              0.             0.             0.             0.             0.             0.             0.             0.
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07           4000.        150000.             0.             0.        154000.         32838.         32838.         21259.
 12-08           4800.             0.             0.             0.          4800.        153923.        186761.        110644.
 12-09           4800.             0.             0.             0.          4800.        103876.        290638.         67884.
 12-10           4800.             0.             0.             0.          4800.         69610.        360248.         41358.
 12-11           4800.          7000.             0.             0.         11800.         57112.        417359.         30562.
 12-12           4800.             0.             0.             0.          4800.        214748.        632108.        105370.
 12-13           4800.             0.             0.             0.          4800.        156853.        788960.         69967.
 12-14           4800.             0.             0.             0.          4800.        114224.        903185.         46321.
 12-15           4800.             0.             0.             0.          4800.         82837.        986022.         30540.
 12-16           4800.             0.             0.             0.          4800.         59727.       1045749.         20019.
 12-17           3600.             0.             0.             0.          3600.         33360.       1079109.         10274.
 12-18
 12-19

 Sub-T          50800.        157000.             0.             0.        207800.       1079109.       1079109.        554199.
 After              0.             0.             0.             0.             0.             0.       1079109.             0.
 Total          50800.        157000.             0.             0.        207800.       1079109.       1079109.        554199.

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

      
        
          
          

        

        
          50

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   15
   OPERATOR: 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       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000       390.651
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000       302.858
                                                                                                         20.0000       238.619
 REMARKS    ESTIMATE WELL DRILLED & ON PRODUCTION 04/2006                                                25.0000       190.706
                                                                                                         30.0000       154.347
                                                                                                         35.0000       126.324


                 -------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--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00


      
        
          
          

        

        
          51

          
            

          

        

        
          
          

        

      

       12-06      0.           .000           .000             0.           .000           .000             0.          .00        .00
 12-07      1.           .000           .000           188.           .000           .000            30.          .00       5.10
 12-08      1.           .000           .000           240.           .000           .000            38.          .00       5.10
 12-09      1.           .000           .000           165.           .000           .000            26.          .00       5.10
 12-10      1.           .000           .000           113.           .000           .000            18.          .00       5.10
 12-11      1.           .000           .000            77.           .000           .000            12.          .00       5.10
 12-12      1.           .000           .000           236.           .000           .000            38.          .00       5.10
 12-13      1.           .000           .000           142.           .000           .000            23.          .00       5.10
 12-14      1.           .000           .000            51.           .000           .000             8.          .00       5.10
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T      1.           .000           .000          1212.           .000           .000           194.          .00       5.10
 After      0.           .000           .000             0.           .000           .000             0.          .00        .00
 Total      1.           .000           .000          1212.           .000           .000           194.          .00       5.10

 Cumulative              .000           .000             0.
 Ultimate                .000           .000          1212.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05             0.             0.             0.          0.          0.               0.             0.                  0.
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.        153749.          0.     153749.           11531.          5379.             136838.
 12-08             0.             0.        196052.          0.     196052.           14704.          6859.             174489.
 12-09             0.             0.        134235.          0.     134235.           10068.          4697.             119471.
 12-10             0.             0.         91910.          0.      91910.            6893.          3216.              81801.
 12-11             0.             0.         62930.          0.      62930.            4720.          2202.              56008.
 12-12             0.             0.        192840.          0.     192840.           14463.          6747.             171630.
 12-13             0.             0.        115764.          0.     115764.            8682.          4050.             103031.
 12-14             0.             0.         41513.          0.      41513.            3113.          1452.              36947.
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T             0.             0.        988992.          0.     988992.           74174.         34603.             880215.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        988992.          0.     988992.           74174.         34603.             880215.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05              0.             0.             0.             0.             0.             0.             0.             0.
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07           2800.        150000.             0.             0.        152800.        -15962.        -15962.        -15478.
 12-08           4800.             0.             0.             0.          4800.        169689.        153727.        121975.
 12-09           4800.             0.             0.             0.          4800.        114671.        268398.         74937.
 12-10           4800.             0.             0.             0.          4800.         77001.        345399.         45748.
 12-11           4800.             0.             0.             0.          4800.         51208.        396607.         27661.
 12-12           4800.          7000.             0.             0.         11800.        159830.        556437.         77932.
 12-13           4800.             0.             0.             0.          4800.         98231.        654668.         43966.
 12-14           3200.             0.             0.             0.          3200.         33747.        688415.         13910.
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T          34800.        157000.             0.             0.        191800.        688415.        688415.        390651.
 After              0.             0.             0.             0.             0.             0.        688415.             0.
 Total          34800.        157000.             0.             0.        191800.        688415.        688415.        390651.

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

      
         

        
          
            
            

          

          
            52

            
              

            

          

          
            
            

          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   16
   OPERATOR: 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       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000       628.206
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000       436.544
                                                                                                         20.0000       314.806
 REMARKS    ESTIMATE WELL DRILLED & ON PRODUCTION 04/2006                                                25.0000       234.197
                                                                                                         30.0000       178.827
                                                                                                         35.0000       139.555


                 -------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--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00


       

      
        
          
          

        

        
          53

          
            

          

        

        
          
          

        

      

       12-06      0.           .000           .000             0.           .000           .000             0.          .00        .00
 12-07      1.           .000           .000           113.           .000           .000            18.          .00       5.10
 12-08      1.           .000           .000           265.           .000           .000            42.          .00       5.10
 12-09      1.           .000           .000           182.           .000           .000            29.          .00       5.10
 12-10      1.           .000           .000           125.           .000           .000            20.          .00       5.10
 12-11      1.           .000           .000            86.           .000           .000            14.          .00       5.10
 12-12      1.           .000           .000           194.           .000           .000            31.          .00       5.10
 12-13      1.           .000           .000           235.           .000           .000            38.          .00       5.10
 12-14      1.           .000           .000           153.           .000           .000            24.          .00       5.10
 12-15      1.           .000           .000            99.           .000           .000            16.          .00       5.10
 12-16      1.           .000           .000           159.           .000           .000            25.          .00       5.10
 12-17      1.           .000           .000           273.           .000           .000            44.          .00       5.10
 12-18      1.           .000           .000           194.           .000           .000            31.          .00       5.10
 12-19      1.           .000           .000           138.           .000           .000            22.          .00       5.10

 Sub-T      1.           .000           .000          2217.           .000           .000           355.          .00       5.10
 After      1.           .000           .000           160.           .000           .000            26.          .00       5.10
 Total      1.           .000           .000          2377.           .000           .000           380.          .00       5.10

 Cumulative              .000           .000             0.
 Ultimate                .000           .000          2377.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05             0.             0.             0.          0.          0.               0.             0.                  0.
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.         92047.          0.      92047.            6904.          3221.              81923.
 12-08             0.             0.        216181.          0.     216181.           16214.          7564.             192404.
 12-09             0.             0.        148579.          0.     148579.           11143.          5198.             132237.
 12-10             0.             0.        102117.          0.     102117.            7659.          3573.              90885.
 12-11             0.             0.         70184.          0.      70184.            5264.          2456.              62464.
 12-12             0.             0.        158465.          0.     158465.           11885.          5544.             141035.
 12-13             0.             0.        192031.          0.     192031.           14402.          6719.             170910.
 12-14             0.             0.        124556.          0.     124556.            9342.          4358.             110857.
 12-15             0.             0.         80790.          0.      80790.            6059.          2827.              71904.
 12-16             0.             0.        129971.          0.     129971.            9748.          4547.             115676.
 12-17             0.             0.        222461.          0.     222461.           16685.          7783.             197993.
 12-18             0.             0.        158441.          0.     158441.           11883.          5544.             141015.
 12-19             0.             0.        112845.          0.     112845.            8463.          3948.             100434.

 Sub-T             0.             0.       1808669.          0.    1808669.          135650.         63282.            1609737.
 After             0.             0.        130963.          0.     130963.            9822.          4582.             116559.
 Total             0.             0.       1939632.          0.    1939632.          145472.         67864.            1726296.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05              0.             0.             0.             0.             0.             0.             0.             0.
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07           1600.        150000.             0.             0.        151600.        -69677.        -69677.        -54999.
 12-08           4800.             0.             0.             0.          4800.        187604.        117927.        134847.
 12-09           4800.             0.             0.             0.          4800.        127437.        245364.         83276.
 12-10           4800.             0.             0.             0.          4800.         86085.        331449.         51143.
 12-11           4800.             0.             0.             0.          4800.         57664.        389113.         31146.
 12-12           4800.          7000.             0.             0.         11800.        129235.        518348.         62216.
 12-13           4800.             0.             0.             0.          4800.        166110.        684459.         74172.
 12-14           4800.             0.             0.             0.          4800.        106057.        790515.         43054.
 12-15           4800.             0.             0.             0.          4800.         67104.        857620.         24767.
 12-16           4800.          7000.             0.             0.         11800.        103876.        961496.         34094.
 12-17           4800.             0.             0.             0.          4800.        193193.       1154689.         58875.
 12-18           4800.             0.             0.             0.          4800.        136215.       1290904.         37739.
 12-19           4800.             0.             0.             0.          4800.         95634.       1386537.         24088.

 Sub-T          59200.        164000.             0.             0.        223200.       1386537.       1386537.        604418.
 After           9200.             0.             0.             0.          9200.        107359.       1493896.         23788.
 Total          68400.        164000.             0.             0.        232400.       1493896.       1493896.        628206.

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

      
        
          
          

        

        
          54

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   17
   OPERATOR: 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       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000       162.702
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000       130.966
                                                                                                         20.0000       106.341
 REMARKS    ESTIMATE WELL DRILLED & ON PRODUCTION 04/2006                                                25.0000        87.024
                                                                                                         30.0000        71.723
                                                                                                         35.0000        59.492


                 -------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--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00
 12-06      0.           .000           .000             0.           .000           .000             0.          .00        .00


      
        
          
          

        

        
          55

          
            

          

        

        
          
          

        

      

       12-07      1.           .000           .000            29.           .000           .000             5.          .00       5.10
 12-08      1.           .000           .000           270.           .000           .000            43.          .00       5.10
 12-09      1.           .000           .000           162.           .000           .000            26.          .00       5.10
 12-10      1.           .000           .000            97.           .000           .000            16.          .00       5.10
 12-11      1.           .000           .000            28.           .000           .000             4.          .00       5.10
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T      1.           .000           .000           586.           .000           .000            94.          .00       5.10
 After      0.           .000           .000             0.           .000           .000             0.          .00        .00
 Total      1.           .000           .000           586.           .000           .000            94.          .00       5.10

 Cumulative              .000           .000             0.
 Ultimate                .000           .000           586.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05             0.             0.             0.          0.          0.               0.             0.                  0.
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.         23965.          0.      23965.            1797.           838.              21329.
 12-08             0.             0.        220308.          0.     220308.           16523.          7708.             196076.
 12-09             0.             0.        132037.          0.     132037.            9903.          4620.             117514.
 12-10             0.             0.         79133.          0.      79133.            5935.          2769.              70430.
 12-11             0.             0.         22733.          0.      22733.            1705.           795.              20233.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T             0.             0.        478176.          0.     478176.           35863.         16730.             425582.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        478176.          0.     478176.           35863.         16730.             425582.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05              0.             0.             0.             0.             0.             0.             0.             0.
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07            400.        150000.             0.             0.        150400.       -129071.       -129071.        -97809.
 12-08           4800.             0.             0.             0.          4800.        191276.         62206.        137638.
 12-09           4800.             0.             0.             0.          4800.        112714.        174920.         73738.
 12-10           4800.             0.             0.             0.          4800.         65630.        240549.         39037.
 12-11           2000.             0.             0.             0.          2000.         18233.        258782.         10098.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

 Sub-T          16800.        150000.             0.             0.        166800.        258782.        258782.        162702.
 After              0.             0.             0.             0.             0.             0.        258782.             0.
 Total          16800.        150000.             0.             0.        166800.        258782.        258782.        162702.

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

      
        
          
          

        

        
          56

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   GRAND TOTAL                                                                                            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      3381.313
 FINAL                                                                                                   15.0000      2406.486
                                                                                                         20.0000      1787.106
                                                                                                         25.0000      1371.250
                                                                                                         30.0000      1079.377
                                                                                                         35.0000       867.067

                 -------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--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00


      
        
          
          

        

        
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       12-06      0.           .000           .000           143.           .000           .000            23.          .00       5.10
 12-07      4.           .000           .000          1156.           .000           .000           185.          .00       5.10
 12-08      6.           .000           .000          1398.           .000           .000           224.          .00       5.10
 12-09      6.           .000           .000           945.           .000           .000           151.          .00       5.10
 12-10      6.           .000           .000           641.           .000           .000           103.          .00       5.10
 12-11      5.           .000           .000           456.           .000           .000            73.          .00       5.10
 12-12      5.           .000           .000          1306.           .000           .000           209.          .00       5.10
 12-13      5.           .000           .000          1051.           .000           .000           168.          .00       5.10
 12-14      5.           .000           .000           694.           .000           .000           111.          .00       5.10
 12-15      4.           .000           .000           456.           .000           .000            73.          .00       5.10
 12-16      4.           .000           .000           419.           .000           .000            67.          .00       5.10
 12-17      4.           .000           .000           657.           .000           .000           105.          .00       5.10
 12-18      3.           .000           .000           720.           .000           .000           115.          .00       5.10
 12-19      3.           .000           .000           502.           .000           .000            80.          .00       5.10

 Sub-T      4.           .000           .000         10546.           .000           .000          1687.          .00       5.10
 After      2.           .000           .000          2356.           .000           .000           377.          .00       5.10
 Total      3.           .000           .000         12903.           .000           .000          2064.          .00       5.10

 Cumulative              .000           .000             0.
 Ultimate                .000           .000         12903.


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

 -END-
 MO-YR     Oil/Cond      Plt. Produc        Gas        Other       Total            SEV TAX       ADV TAX       AFTER SEV & ADV
 -----   ------$-----  ------$------    -----$-----  -----$----  -----$----      -----$-----    ------$----     -------$-------
 12-05             0.             0.             0.          0.          0.               0.             0.                  0.
 12-06             0.             0.        116691.          0.     116691.            8752.          4083.             103856.
 12-07             0.             0.        943703.          0.     943703.           70778.         33018.             839907.
 12-08             0.             0.       1140723.          0.    1140723.           85554.         39912.            1015257.
 12-09             0.             0.        771426.          0.     771426.           57857.         26991.             686579.
 12-10             0.             0.        523437.          0.     523437.           39258.         18314.             465865.
 12-11             0.             0.        371884.          0.     371884.           27891.         13012.             330981.
 12-12             0.             0.       1065313.          0.    1065313.           79898.         37273.             948142.
 12-13             0.             0.        857996.          0.     857996.           64350.         30020.             763626.
 12-14             0.             0.        566564.          0.     566564.           42492.         19823.             504249.
 12-15             0.             0.        372333.          0.     372333.           27925.         13027.             331381.
 12-16             0.             0.        342216.          0.     342216.           25666.         11973.             304576.
 12-17             0.             0.        536201.          0.     536201.           40215.         18761.             477225.
 12-18             0.             0.        587746.          0.     587746.           44081.         20564.             523101.
 12-19             0.             0.        409425.          0.     409425.           30707.         14325.             364393.

 Sub-T             0.             0.       8605658.          0.    8605658.          645424.        301096.            7659138.
 After             0.             0.       1922783.          0.    1922783.          144209.         67275.            1711300.
 Total             0.             0.      10528440.          0.   10528440.          789633.        368370.            9370438.


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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05              0.             0.             0.             0.             0.             0.             0.             0.
 12-06           2000.        300000.             0.             0.        302000.       -198144.       -198144.       -167585.
 12-07          18400.        600000.             0.             0.        618400.        221507.         23363.        171825.
 12-08          28800.             0.             0.             0.         28800.        986457.       1009821.        709165.
 12-09          28800.             0.             0.             0.         28800.        657779.       1667599.        429896.
 12-10          28800.             0.             0.             0.         28800.        437065.       2104664.        259689.
 12-11          26000.         14000.             0.             0.         40000.        290981.       2395645.        156834.
 12-12          24000.         21000.             0.             0.         45000.        903142.       3298786.        440695.
 12-13          24000.             0.             0.             0.         24000.        739627.       4038413.        330168.
 12-14          22400.             0.             0.             0.         22400.        481849.       4520262.        195687.
 12-15          19200.             0.             0.             0.         19200.        312181.       4832443.        115130.
 12-16          19200.          7000.             0.             0.         26200.        278376.       5110819.         92589.
 12-17          18000.         14000.             0.             0.         32000.        445225.       5556044.        134465.
 12-18          14400.             0.             0.             0.         14400.        508701.       6064745.        140960.
 12-19          14400.             0.             0.             0.         14400.        349993.       6414738.         88168.

 Sub-T         288400.        956000.             0.             0.       1244400.       6414738.       6414738.       3097686.
 After          82000.         14000.             0.             0.         96000.       1615300.       8030038.        283627.
 Total         370400.        970000.             0.             0.       1340400.       8030038.       8030038.       3381313.

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



      
        
          
          

        

        
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