EXHIBIT 99




                                        January 30, 1996




DelMar Operating, Inc.
1100 Louisiana, Suite 900
Houston, Texas 77002-5218

Gentlemen:

    At your request, we have prepared an estimate of the reserves,
future production, and income attributable to certain company
leasehold and royalty interest of DelMar Operating, Inc. (DelMar),
as of December 31, 1995.  The subject properties are located in the
states of Louisiana and Texas and in federal waters offshore
Louisiana, and Texas.  The income data were estimated using
Securities and Exchange Commission (SEC) guidelines for future cost
and price parameters.

    The estimated reserves and future income amounts presented in
this report are related to hydrocarbon prices.  December 1995
hydrocarbon prices were used in the preparation of this report as
required by SEC guidelines; however, actual future prices may vary
significantly from December 1995 prices.  Therefore, volumes of
reserves actually recovered and amounts of income actually received
may differ significantly from the estimated quantities presented in
this report.  A summary of the results of this study is shown
below.
<TABLE>
<CAPTION>

                                                                   SEC PARAMETERS
                                                        Estimated Net Reserves and Income Data
                                                   Certain Company Leasehold and Royalty Interest of
                                                                DelMar Operating, Inc.
  
                                                              As of December 31, 1995


                                                                     Proved
                                 --------------------------------------------------------------------------------------
                                               Developed
                                 -------------------------------------                                        Total
                                    Producing           Non-Producing                Undeveloped              Proved
                                 --------------        ---------------              -------------          ------------
<S>                              <C>                    <C>                          <C>                   <C>
Net Remaining Reserves
----------------------
  Oil/Condensate - Barrels           171,840                164,993                       9,371                 346,204
  Gas - MMCF                           3,374                  1,922                         709                   6,005

Income Data
----------------------
  Future Gross Revenue           $10,735,515              $7,524,844                 $1,792,863             $20,053,222
  Deductions                       3,914,186               2,814,763                    492,894               7,221,843
                                 -----------              ----------                 ----------              ----------
  Future Net Income (FNI)        $ 6,821,329              $4,710,081                 $1,299,969             $12,831,379

  Discounted FNI @ 10%            $6,264,843              $3,328,474                 $  947,031             $10,540,348
/TABLE
<PAGE>
<TABLE>
<CAPTION>

                                                                        Probable
                                  --------------------------------------------------------------------------------------
                                               Developed
                                  -------------------------------------                                       Total
                                     Producing           Non-Producing               Undeveloped             Probable
                                  --------------        ---------------            --------------         -------------
<S>                                 <C>                  <C>                          <C>                 <C>
  Net Remaining Reserves
-------------------------
  Oil/Condensate - Barrels              4,873                21,816                       2,769                29,458
  Gas - MMCF                              192                   702                         220                 1,114

Income Data
-------------------------
  Future Gross Revenue               $533,342             $2,060,966                   $553,597            $3,147,905
  Deductions                                0                333,099                    250,409               583,508
                                     --------             ----------                   --------            ----------
  Future Net Income (FNI)            $533,342             $1,727,867                   $303,188            $2,564,397

  Discounted FNI @ 10%               $446,526             $1,009,594                   $229,266            $1,685,386
</TABLE>

<TABLE>
<CAPTION>

                                                           Possible
                                     ---------------------------------------------------------
                                              Developed
                                     ---------------------------------                Total
                                     Producing           Non-Producing               Possible
                                     ----------          --------------             ----------
<S>                                  <C>                   <C>                      <C>
Net Remaining Reserves
-------------------------
   Oil/Condensate - Barrels             4,873                 2,488                     7,361
   Gas - MMCF                             166                   129                       295
Income Data
--------------------------
  Future Gross Revenue               $468,668              $340,374                  $809,042
  Deductions                                0                14,233                    14,233
                                     --------              --------                 ---------
  Future Net Income (FNI)            $468,668              $326,141                  $794,809

  Discounted FNI @ 10%               $398,126              $188,671                  $586,797

</TABLE>

    Liquid hydrocarbons are expressed in standard 42 gallon
barrels.  All gas volumes are sales gas expressed in millions of
cubic feet (MMCF) at the official temperature and pressure bases of
the areas in which the gas reserves are located.  We have included
probable and possible reserves and income in this report at the
request of DelMar.  These data are for DelMar's information only
and should not be included in reports to the SEC according to the
SEC guidelines.

    The proved, probable, and possible developed non-producing
reserves included herein are comprised of the behind pipe category. 
The various producing status categories are defined under the tab
"Reserve Definitions and Pricing Assumptions" in this report.

    The deductions are comprised of the normal direct costs of
operating the wells, recompletion costs, development costs, and
certain "unfunded" abandonment costs net of salvage.  The future
net income is before the deduction of state and federal income
taxes and general administrative overhead, and has not been
adjusted for outstanding loans that may exist nor does it include
any adjustment for cash on hand or undistributed income.  DelMar
informed us of three gas imbalances which are included in this
report.  They are in the Eugene Island 342, East Cameron 317/318,
and Eugene Island 324 fields.  Gas reserves account for
approximately 68 percent and Liquid hydrocarbon reserves account
for the remaining 32 percent of total future gross revenue from
proved reserves.

    The discounted future net income shown above was calculated
using a discount rate of 10 percent per annum compounded monthly.
Future net income was discounted at four other discount rates which
were also compounded monthly.  These results are shown on each
estimated projection of future production and income presented in a
later section of this report and in summary form below.

<TABLE>
<CAPTION>

                                                                 Discounted Future Net Income
                                                                  As of December 31, 1995
                                           -------------------------------------------------------------------------

                    Discount Rate                 Total                     Total                        Total
                     Percent                      Proved                  Probable                     Possible
                 ------------------        ----------------           ---------------              -----------------
                        <S>                   <C>                        <C>                           <C>
                         5                    $11,591,704                $2,057,722                    $678,308
                        15                    $ 9,640,592                $1,406,247                    $513,932
                        20                    $ 8,864,025                $1,192,731                    $455,147
                        25                    $ 8,188,521                $1,026,141                    $407,116

The results shown above are presented for your information and
should not be construed as our estimate of fair market value.

Reserves Included in This Report

    The proved reserves included herein conform to the definition
as set forth in the Securities and Exchange Commission's Regulation
S-X Part 210.4-10 (a) as clarified by subsequent Commission Staff
Accounting Bulletins.  The probable reserves and possible reserves
included herein conform to definitions of probable and possible
reserves approved by the Society of Petroleum Engineers and the
Society of Petroleum Evaluation Engineers.  Our definitions of
proved, probable, and possible reserves are included under the tab
"Reserve Definitions and Pricing Assumptions" in this report.

    The probable reserves are less certain to be recovered than the
proved reserves and reserves classified as possible are less
certain to be recovered than those in the probable category.  The
reserves and income quantities attributable to the different
reserve classifications that are included herein have not been
adjusted to reflect the varying degrees of risk associated with
them and thus are not comparable.

Estimates of Reserves

    In general, the reserves included herein were estimated by
performance methods or the volumetric method; however, other
methods were used in certain cases where characteristics of the
data indicated such other methods were more appropriate in our
opinion.  The reserves estimated by the performance method utilized
extrapolations of various historical data in those cases where such
data were definitive in our opinion.  Reserves were estimated by
the volumetric method in those cases where there were inadequate
historical performance data to establish a definitive trend or
where the use of production performance data as a basis for the
reserve estimates was considered to be inappropriate.

    The reserves included in this report are estimates only and
should not be construed as being exact quantities.  They may or may
not be actually recovered, and if recovered, the revenues therefrom
and the actual costs related thereto could be more or less than the
estimated amounts.  Moreover, estimates of reserves may increase or
decrease as a result of future operations.

Future Production Rates

    Initial production rates are based on the current producing
rates for those wells now on production.  Test data and other
related information were used to estimate the anticipated initial
production rates for those wells or locations which are not
currently producing.  If no production decline trend has been
established, future production rates were held constant, or
adjusted for the effects of curtailment where appropriate, until a
decline in ability to produce was anticipated.  An estimated rate
of decline was then applied to depletion of the reserves.  If a
decline trend has been established, this trend was used as the
basis for estimating future production rates.  For reserves not yet
on production, sales were estimated to commence at an anticipated
date furnished by DelMar.

    In general, we estimate that future gas production rates will
continue to be the same as the average rate for the latest
available 12 months of actual production until such time that the
well or wells are incapable of producing at this rate.  The well or
wells were then projected to decline at their decreasing delivery
capacity rate.  Our general policy on estimates of future gas
production rates is adjusted when necessary to reflect actual gas
market conditions in specific cases.

    The future production rates from wells now on production may be
more or less than estimated because of changes in market demand or
allowables set by regulatory bodies.  Wells or locations which are
not currently producing may start producing earlier or later than
anticipated in our estimates of their future production rates.

Hydrocarbon Prices

    DelMar furnished us with prices in effect at December 31, 1995
and these prices were held constant.  In accordance with Securities
and Exchange Commission guidelines, changes in liquid and gas
prices subsequent to December 31, 1995 were not taken into account
in this report.  Future prices used in this report are discussed in
more detail under the tab "Reserve Definitions and Pricing
Assumptions" in this report.

Costs

    Operating costs for the leases and wells in this report were
furnished by DelMar.  They were accepted without independent
verification.  They are based on the operating expense reports of
DelMar and include only those costs directly applicable to the
leases or wells.  When applicable, the operating costs include a
portion of general and administrative costs allocated directly to
the leases and wells under terms of operating agreements. They do
not include COPAS costs.

    Development costs were furnished to us by DelMar and are based
on authorizations for expenditure for the proposed work or actual
costs for similar projects.  The current operating and development
costs were held constant throughout the life of the properties.  No
deduction was made for indirect costs such as general
administration and overhead expenses, loan repayments, interest
expenses, and exploration and development prepayments that are not
charged directly to the leases or wells.

Abandonment Costs

    For offshore properties, DelMar's estimate of net, "unfunded",
abandonment cost after salvage was included in this report (other
deductions).  Please note, that at DelMar's request, only the
unfunded portion was included.  In this report, funded means a
letter of credit or money in an escrow account.  Unfunded, means
costs still to be collected, either by unit of production,
overriding royalty, or end of life payment.  There are "Remarks" on
the first summary of each field that indicate how funding was
handled in that field.

    For onshore properties, at the request of DelMar, DelMar's
estimate of zero net abandonment costs after salvage value was used
in this report.  Ryder Scott has not performed a detail study of
the abandonment costs nor the salvage value and makes no warranty
for DelMar's estimates.

General

    Table A presents a one line summary of proved reserve and
income data for each of the subject properties which are ranked
according to their future net income discounted at 10 percent per
year.  Table B presents a one line summary of gross and net
reserves and income data for each of the subject properties.  Table
C presents a one line summary of initial basic data for each of the
subject properties.  Tables 1 through 239 present our estimated
projection of production and income by years beginning December 31,
1995, by program, state, field, and lease or well.

    While it may reasonably be anticipated that the future prices
received for the sale of production and the operating costs and
other costs relating to such production may also increase or
decrease from existing levels, such changes were, in accordance
with rules adopted by the SEC, omitted from consideration in making
this evaluation.

    The estimates of reserves presented herein were based upon a
detailed study of the subject properties; however, we have not made
any field examination of the properties.  No consideration was
given in this report to potential environmental liabilities which
may exist nor were any costs included for potential liability to
restore and clean up damages, if any, caused by past operating
practices.  DelMar has informed us that they have furnished us all
of the accounts, records, geological and engineering data, and
reports and other data required for this investigation.  The
ownership interests, prices, and other factual data furnished by
DelMar were accepted without independent verification.  The
estimates presented in this report are based on data available
through December 1995.

    Neither we nor any of our employees have any interest in the
subject properties and neither the employment to make this study
nor the compensation is contingent on our estimates of reserves and
future income for the subject properties.

    This report was prepared for the exclusive use of DelMar
Operating, Inc.  The data, work papers, and maps used in this
report are available for examination by authorized parties in our
offices.  Please contact us if we can be of further service.

                                     Very truly yours,

                                     RYDER SCOTT COMPANY
                                     PETROLEUM ENGINEERS



                                    /s/Joseph E. Blankenship, P.E.
                                    ------------------------------
                                    Joseph E. Blankenship, P.E.
JEB/sw                              Petroleum Engineer

Approved:

/s/ Joseph E. Magoto, P.E.
--------------------------
Joseph E. Magoto, P.E.
Group Vice President
<PAGE>


</TABLE>