Document:

Exhibit 10.1

                            ASSET PURCHASE AGREEMENT

                                  BY AND AMONG

                             MANTI RESOURCES, INC.,
                            MANTI OPERATING COMPANY,
                       MANTI MUSTANG CREEK, LTD., SELLERS

                                       AND

                           GULF COAST OIL CORPORATION,
                                      BUYER

<PAGE>

                                TABLE OF CONTENTS

ARTICLE 1.  DEFINITIONS                                                       1

ARTICLE 2.  SALE AND TRANSFER OF ASSETS:  CLOSING                             7
   2.01.    ASSETS.                                                           7
   2.02.    PURCHASE PRICE.                                                   7
   2.03.    CLOSING.                                                          7
   2.04.    CLOSING OBLIGATIONS.                                              7
   2.05.    ALLOCATIONS AND ADJUSTMENTS.                                      9
   2.06.    ASSUMPTION.                                                       11
   2.07.    DELIVERY OF RECORDS.                                              11
   2.08.    SUSPENDED FUNDS.                                                  12
   2.09.    AGREEMENT REGARDING FUTURE ACTIVITY IN THE
            AREA OF MUTUAL INTEREST                                           13

ARTICLE 3.  REPRESENTATIONS AND WARRANTIES OF SELLER                          13
   3.01.    ORGANIZATION AND GOOD STANDING.                                   13
   3.02.    AUTHORITY; NO CONFLICT.                                           13
   3.03.    BANKRUPTCY.                                                       14
   3.04.    TAXES.                                                            14
   3.05.    LEGAL PROCEEDINGS; ORDERS.                                        15
   3.06.    ENVIRONMENTAL.                                                    15
   3.07.    PERSONAL PROPERTY.                                                15
   3.08.    TITLE TO PROPERTIES.                                              16
   3.09.    BROKERS.                                                          16
   3.10.    TAX SHARING AGREEMENTS.                                           16
   3.11.    CONSENTS.                                                         16
   3.12.    GAS IMBALANCES, PREPAYMENT ARRANGEMENTS; TAKE-OR-PAY.             16
   3.13.    STATUS OF LEASES.                                                 16
   3.14.    CONTRACTS.                                                        16

ARTICLE 4.  REPRESENTATIONS AND WARRANTIES OF BUYER                           17
   4.01.    ORGANIZATION AND GOOD STANDING.                                   17
   4.02.    AUTHORITY; NO CONFLICT.                                           17
   4.03.    CERTAIN PROCEEDINGS.                                              18
   4.04.    KNOWLEDGEABLE INVESTOR.                                           18
   4.05.    SECURITIES LAWS.                                                  18
   4.06.    DUE DILIGENCE                                                     18
   4.07.    BASIS OF BUYER'S DECISION                                         18
   4.08.    MATERIAL FACTOR                                                   18

ARTICLE 5.  CONVENANTS OF SELLER                                              18
   5.01.    ACCESS AND INVESTIGATION.                                         19
   5.02.    OPERATION OF THE ASSETS.                                          19
   5.03.    INSURANCE.                                                        20
   5.04.    CONSENT AND WAIVERS.                                              20
   5.05.    EXTRAORDINARY EVENTS.                                             20
   5.06.    MATERIAL FACTOR.                                                  20

<PAGE>

ARTICLE 6.  CONVENANTS OF BUYER                                               21
   6.01.    NOTIFICATION.                                                     21

ARTICLE 7.  IDEMNIFICIATION; REMEDIES                                         21
   7.01.    SURVIVAL.                                                         21
   7.02.    INDEMNIFICATION AND PAYMENT OF DAMAGES BY SELLER.                 21
   7.03.    INDEMNIFICATION AND PAYMENT OF DAMAGES BY BUYER.                  22
   7.04.    TIME LIMITATIONS.                                                 22
   7.05.    LIMITATIONS ON AMOUNT--SELLER.                                    23
   7.06.    LIMITATIONS ON AMOUNT--BUYER.                                     23
   7.07.    PROCEDURE FOR INDEMNIFICATION--THIRD PARTY CLAIMS.                23
   7.08.    PROCEDURE FOR INDEMNIFICATION--OTHER CLAIMS.                      24
   7.09.    EXTENT OF REPRESENTATIONS AND WARRANTIES.                         24
   7.10.    COMPLIANCE WITH EXPRESS NEGLIGENCE TEST.                          25
   7.11.    LIMITATIONS OF LIABILITY.                                         25

ARTICLE 8.  TITLE MATTERS AND ENVIRONMENTAL MATTERS                           25
   8.01.    TITLE EXAMINATION AND ACCESS.                                     25
   8.02.    DEFENSIBLE TITLE.                                                 26
   8.03.    TITLE DEFECTS.                                                    26
   8.04.    ADJUSTMENTS.                                                      27
   8.05.    ENVIRONMENTAL AUDIT                                               27
   8.06.    REMEDIES FOR VIOLATIONS OF ENVIRONMENTAL LAWS                     28
   8.07.    RIGHT OF TERMINATION.                                             28
   8.08.    DISPUTES.                                                         28
   8.09.    CASUALTY LOSS AND CONDEMNATION.                                   28
   8.10.    SECURING ASSIGNMENT OF WHEELER ASSIGNMENt                         30

ARTICLE 9.  GENERAL PROVISIONS                                                30
   9.01.    EXPENSES.                                                         30
   9.02.    NOTICES.                                                          30
   9.03.    JURISDICTION; SERVICE OF PROCESS.                                 31
   9.04.    FURTHER ASSURANCES.                                               31
   9.05.    WAIVER.                                                           31
   9.06.    ENTIRE AGREEMENT AND MODIFICATION.                                31
   9.07.    ASSIGNMENTS, SUCCESSORS, AND NO THIRD-PARTY RIGHTS.               32
   9.08.    SEVERABILITY.                                                     32
   9.09.    SECTION HEADINGS, CONSTRUCTION.                                   32
   9.10.    TIME OF ESSENCE.                                                  32
   9.11.    GOVERNING LAW.                                                    32
   9.12.    COUNTERPARTS.                                                     32
   9.13.    WAIVER OF TEXAS DECEPTIVE TRADE PRACTICES -
            CONSUMER PROTECTION ACT.                                          32
   9.14.    ARBITRATION.                                                      33
   9.15.    TAX DEFERRED EXCHANGE.                                            33
   9.16.    PRESS RELEASE.                                                    33

<PAGE>

                            ASSET PURCHASE AGREEMENT

     This  Asset  Purchase Agreement ("Agreement") is made as of April 28, 2006,
by  and  among  MANTI  RESOURCES,  INC.,  a  Texas  corporation, MANTI OPERATING
COMPANY,  a  Texas  corporation,  MANTI  MUSTANG  CREEK,  LTD.,  a Texas Limited
Partnership (collectively "SELLERS" and individually, a "SELLER") and GULF COAST
OIL  CORPORATION,  a  Delaware  corporation  ("BUYER").

                                    RECITALS

     Seller  desires  to  sell,  in  the proportions set forth herein, and Buyer
desires  to  purchase,  undivided  interests  in  certain  oil, gas, and mineral
properties  and  related  assets and contracts, for the consideration and on the
terms  set  forth  in  this  Agreement.

                                    AGREEMENT

     The  parties,  intending  to  be  legally  bound,  agree  as  follows:

                                    ARTICLE 1

                                   DEFINITIONS

     For  purposes of this Agreement, in addition to the other Capitalized terms
defined  herein,  the following terms have the meanings specified or referred to
in  this  Article  1:

     "AFFILIATE"  --  any  Person  directly  or  indirectly  controlled  by,
      ---------
controlling,  or  under  common  control  with,  Buyer  or Seller, including any
subsidiary of Buyer or Seller and  any "affiliate" of Buyer or Seller within the
meaning  of  Reg.  Sec.240.12b-2  of  the  Securities  Exchange  Act of 1934, as
amended,  with  "control,"  as  used  in  this  definition,  meaning possession,
directly  or  indirectly,  of  the  power  to  direct  or cause the direction of
management, policies or action through ownership of voting securities, contract,
voting trust, or membership in management or in the group appointing or electing
management  or  otherwise  through  formal  or informal arrangements or business
relationships.

     "ALLOCATED  VALUES"  --the  values  assigned among the Asset categories set
      -----------------
forth  on  Schedule  2.02.

     "ASSETS"  -the  Subject  Leases,  Wells,  and  Contracts.
      ------

     "BREACH"--a  "Breach"  of a representation, warranty, covenant, obligation,
      ------
or  other  provision  of  this Agreement or any instrument delivered pursuant to
this  Agreement  will  be  deemed  to  have occurred if there is or has been any
inaccuracy  in  or  breach  of,  or  any failure to perform or comply with, such
representation,  warranty,  covenant,  obligation,  or  other  provision.

                                        1
<PAGE>

     "BUYER'S  CLOSING  DOCUMENTS"--as  defined  in  Section  4.02.
      ---------------------------

     "CAPITAL  EXPENDITURES"-The  cost  to drill, complete and hook up to sales,
      ---------------------
all  wells  drilled  after  the  Effective  Time.

     "CLOSING"--as  defined  in  Section  2.03.
      -------

     "CLOSING  DATE"--the  date  and time as of which the Closing actually takes
      -------------
place.

     "CONSENT"--any  approval,  consent,  ratification,  waiver,  or  other
      -------
authorization  (including  any  Governmental  Authorization)  relating  to  the
conveyance  of  the  Assets  or  a  portion  thereof.

     "CONTEMPLATED  TRANSACTIONS"--all  of the transactions contemplated by this
      --------------------------
Agreement,  including,  but  not  limited  to:

     (a)  the  sale  of  the  Assets  by  Seller  to  Buyer;

     (b)  the execution,  delivery,  and  performance  of  the  Instruments  of
          Conveyance and all other instruments and documents required under this
          Agreement;

     (c)  the performance  by  Buyer  and  Seller  of their respective covenants
          and  obligations  under  this  Agreement;  and

     (d)  Buyer's  acquisition,  ownership,  and  exercise  of  control over the
     Assets.

     "CONTRACT"--any  written  agreement  or  contract  that  is legally binding
      --------
relating  to  the  Subject  Leases or Wells, including without limitation, those
listed  on  EXHIBIT  B.

     "DAMAGES"--as  defined  in  Section  7.02.
      -------

     "DEFENSIBLE  TITLE"--as  defined  in  Section  8.02.
      -----------------

     "DISCLOSURE  SCHEDULE"--the  disclosure  schedule  attached  as  EXHIBIT D.
      --------------------

     "EFFECTIVE  TIME"-DECEMBER  1,  2005,  at 7:00 a.m., Central Daylight Time.
      ---------------

     "ENCUMBRANCE"--any  charge,  equitable  interest,  privilege, lien, option,
      -----------
pledge,  security  interest, right of first refusal, or restriction of any kind.

     "ENVIRONMENT"--soil,  land  surface  or  subsurface  strata, surface waters
      -----------
(including  navigable waters, ocean waters, streams, ponds, drainage basins, and
wetlands),  groundwater,  drinking  water  supply, stream sediments, ambient air
(including  indoor  air),  plant  and  animal  life, and any other environmental
medium  or  natural  resource.

                                        2
<PAGE>

     "ENVIRONMENTAL  LAW"--any  Legal  Requirement  that requires or relates to:
      ------------------

     (a)  advising  appropriate  authorities,  employees,  and  the  public  of
          intended  or  actual releases of pollutants or hazardous substances or
          materials  that  could  have  significant  impact  on the Environment;

     (b)  preventing  or  reducing  to  acceptable  levels  the  release  of
          pollutants  or hazardous substances or materials into the Environment;

     (c)  reducing  the  quantities,  preventing  the  release,  or  minimizing
          the  hazardous  characteristics  of  wastes  that  are  generated;

     (d)  protecting  resources,  species,  or  ecological  amenities;

     (e)  reducing  to  acceptable  levels  the  risks  inherent  in  the
          transportation  of  hazardous  substances,  pollutants,  oil, or other
          potentially  harmful  substances;

     (f)  cleaning  up  pollutants  that  have  been  released,  preventing  the
          threat of release, or paying the costs of such clean up or prevention;
          or

     (g)  making  responsible  parties  pay  private  parties,  or  groups  of
          them,  for  damages  done  to  their  health  or  the  Environment, or
          permitting  self-appointed  representatives  of the public interest to
          recover  for  injuries  done  to  public  assets.

     "ENVIRONMENTAL  LIABILITIES"--any  cost,  damage,  expense,  liability,
      --------------------------
obligation,  or  other  responsibility  arising  from  or  under  either  an
Environmental  Law  or  third  party  claims  relating  to the Environment which
relates  to  the  Assets.

     "EXISTING  BURDENS"  --  the  total  of Lessor Royalty Burdens and Override
      -----------------
Burdens  attributable  to  the  Subject  Leases,  determined on a lease by lease
basis.

     "GAAP"--generally accepted United States accounting principles applied on a
      ----
consistent  basis.

     "GOVERNMENTAL  AUTHORIZATION"--any  approval,  consent,  license,  permit,
      ---------------------------
waiver,  or  other  authorization  issued,  granted,  given,  or  otherwise made
available  by or under the authority of any Governmental Body or pursuant to any
Legal  Requirement.

     "GOVERNMENTAL  BODY"--any:
      ------------------

     (a)  nation,  state,  county,  city,  town,  village,  district,  or  other
          jurisdiction  of  any  nature;

     (b)  federal,  state,  local,  municipal,  foreign,  or  other  government;

                                        3
<PAGE>

     (c)  governmental  or  quasi-governmental  authority  of  any  nature
          (including  any  governmental agency, branch, department, official, or
          entity  and  any  court  or  other  tribunal);

     (d)  multi-national  organization  or  body;  or

     (e)  body exercising,  or  entitled  to  exercise,  any  administrative,
          executive,  judicial,  legislative,  police,  regulatory,  or  taxing
          authority  or  power  of  any  nature.

     "HYDROCARBONS"--oil,  gas,  minerals,  and  other  gaseous  and  liquid
      ------------
hydrocarbons  or  any  combination  of  the  foregoing.

     "INSTRUMENT  OF  CONVEYANCE"--the  instruments  of  conveyance transferring
      --------------------------
title  to  the  Assets  in  the  form  of  EXHIBIT  C.

     "IRC"--the  Internal  Revenue  Code  of  1986  or  any  successor  law, and
      ---
regulations  issued  by  the  IRS  pursuant  to the Internal Revenue Code or any
successor  law.

     "IRS"--the  United States Internal Revenue Service or any successor agency,
      ---
and,  to  the  extent  relevant,  the  United States Department of the Treasury.

     "KNOWLEDGE"--an  individual  will  be  deemed  to  have  "Knowledge"  of  a
      ---------
particular  fact  or  other  matter if such individual is actually aware of such
fact or other matter. A Person (other than an individual) will be deemed to have
"Knowledge"  of  a  particular  fact  or  other  matter if any individual who is
serving  as  an  officer  or  director  of  such Person has, or at any time had,
Knowledge  of  such  fact  or  other  matter.

     "LEGAL  REQUIREMENT"--any  federal,  state,  local,  municipal,  foreign,
      ------------------
international,  or  multinational  law,  administrative  order,  constitution,
ordinance,  principle  of  common  law,  regulation,  statute,  or  treaty.

     "LESSOR ROYALTY BURDENS"-- as to each Subject Lease, all reserved royalties
      ----------------------
arising  under  the  terms  thereof and payable to the mineral owners in, on and
under  the  lands  covered  thereby.

     "ORDER"--any  award,  decision,  injunction,  judgment,  order,  ruling,
      -----
subpoena,  or  verdict  entered,  issued,  made,  or  rendered  by  any  court,
administrative  agency,  or  other  Governmental  Body  or  by  any  arbitrator.

     "ORDINARY  COURSE  OF BUSINESS"--an action taken by a Person will be deemed
      -----------------------------
to  have  been  taken  in  the  "Ordinary  Course of Business" if such action is
consistent  with  the past practices of such Person and is taken in the ordinary
course  of  the  normal  day-to-day  operations  of  such  Person.

                                        4
<PAGE>

     "ORGANIZATIONAL  DOCUMENTS"--(a)  the  articles  or  certificate  of
      -------------------------
incorporation  and the bylaws of a corporation; (b) the articles of organization
and  regulations  of a limited liability company; (c) the certificate of limited
partnership  and limited partnership agreement of a limited partnership; and (d)
any  amendment  to  any  of  the  foregoing.

     "OVERRIDE  BURDENS"--overriding  royalty  interests  burdening  the Subject
      -----------------
Leases  (a)  which  are  presently  of  record in the Counties in which they are
located,  or  (b)  otherwise  arise  pursuant  to  a  Contract.

     "PERMITTED  ENCUMBRANCE"--any  of  the  following:  (a)  any obligations or
      ----------------------
duties  reserved  to or vested in any municipality or other Governmental Body to
regulate  any  Asset  in any manner including all applicable Legal Requirements;
(b)  the  terms and conditions of all leases, options, servitudes, contracts for
sale,  purchase,  exchange,  refining  or  processing of Hydrocarbons, operating
agreements,  construction  agreements,  construction  and  operation agreements,
participation  agreements,  shoot-to-earn  agreements,  exploration  agreements,
partnership  agreements,  processing  agreements,  plant  agreements,  pipeline,
gathering, exchange and transportation agreements, disposal agreements, permits,
licenses  and  any  other  agreements  affecting the Assets, including those set
forth  as Contracts on Exhibit B attached hereto; (c) the Consents identified in
Part  3.13 of the Disclosure Schedule with respect to which prior to Closing (i)
waivers  or  consents  have  been obtained from the appropriate Person, (ii) the
applicable  period  of  time  for  asserting such rights has expired without any
exercise  of  such  rights, or (iii) mutually agreed upon arrangements have been
made  by  the  parties to allow Buyer to receive substantially the same economic
benefits  as  if all such waivers and consents had been obtained; (d) easements,
rights-of-way,  servitudes, permits, surface leases and other similar rights on,
over  or  in  respect of any of the Assets, as long as any such encumbrance does
not  serve to diminish Buyer's right to ingress and egress below that enjoyed by
Seller  and  were  in  effect  as of the Effective Time; (e) lessor's royalties,
overriding  royalties,  production payments, net profits interests, reversionary
interests, and similar burdens if the net cumulative effect of such burdens does
not operate to reduce Seller' entitlement to production from the Wells below the
net  revenue  interests  set  forth  in  Exhibit  A,  (f)  such other defects or
irregularities  of  title or Encumbrances as Buyer may have waived in writing or
which Buyer shall be deemed to have waived pursuant to the provisions of Section
7.03  hereof;  (g)  conventional  rights  of  reassignment  obligating Seller to
reassign  their  interests  in any portion of the Leases to a third party in the
event they intend to release or abandon such interest prior to the expiration of
the  primary  term or other termination of such interest; and (h) from and after
consummation  of  the Closing, defects and irregularities of title which existed
on  the date Sellers acquired the affected Asset, unless Buyer and Sellers agree
otherwise  in  writing  at  or  before  Closing

     "PERSON"--any  individual,  corporation  (including  any  non-profit
      ------
corporation),  general  or limited partnership, limited liability company, joint
venture,  estate, trust, association, organization, labor union, or other entity
or  Governmental  Body.

     "POST  EFFECTIVE  TIME  CREDIT"-as  defined  in  Section  2.05(a).
      -----------------------------

                                        5
<PAGE>

     "PROCEEDING"--any  action,  arbitration,  audit,  hearing,  investigation,
      ----------
litigation,  or suit (whether civil, criminal, administrative, investigative, or
informal)  commenced,  brought,  conducted,  or heard by or before, or otherwise
involving,  any  Governmental  Body  or  arbitrator.

     "PROPERTY  COSTS"--as  defined  in  Section  2.05(a).
      ---------------

     "PURCHASE  PRICE"--as  defined  in  Section  2.02.
      ---------------

     "REPRESENTATIVE"--with  respect  to  a  particular  Person,  any  director,
      --------------
officer,  employee,  agent, consultant, advisor, or other representative of such
Person,  including  legal  counsel,  accountants,  and  financial  advisors.

     "SELLER'S  CLOSING  DOCUMENTS"--as  defined  in  Section  3.02.
      ----------------------------

     "SUBJECT  LEASES"--the oil, gas, and mineral leases described on EXHIBIT A.
      ---------------

     "TAX"--any  tax  (including  any income tax, capital gains tax, value-added
      ---
tax,  sales  tax,  property  tax, severance tax, gift tax, or estate tax), levy,
assess-ment,  tariff,  duty  (including  any customs duty), deficiency, or other
fee, and any related charge or amount (including any fine, penalty, interest, or
addition  to  tax), imposed, assessed, or collected by or under the authority of
any  Governmental  Body  or payable pursuant to any tax-sharing agreement or any
other  Contract  relating  to  the  shar-ing  or  payment of any such tax, levy,
assessment,  tariff,  duty,  defi-ciency,  or  fee.

     "TAX  RETURN"--any  return  (including  any  information  return),  report,
      -----------
statement,  schedule,  notice, form, or other document or information filed with
or  submitted to, or required to be filed with or submitted to, any Governmental
Body in connection with the determination, assessment, collection, or payment of
any Tax or in connection with the administration, implementation, or enforcement
of  or  compliance  with  any  Legal  Requirement  relating  to  any  Tax.

     "THREATENED"--a claim, Proceeding, dispute, action, or other matter will be
      ----------
deemed  to  have  been  "Threatened"  if  any  demand or statement has been made
(orally  or  in  writing)  to  a  party  or  any  of its officers, directors, or
employees  that  would  lead  a  prudent  Person  to conclude that such a claim,
Proceeding,  dispute,  action,  or  other  matter  is  likely  to  be  asserted,
commenced,  taken,  or  otherwise  pursued  in  the  future.

     "TITLE  DEFECT"--as  defined  in  Section  8.03.
      -------------

     "VIOLATION  OF  ENVIRONMENTAL  LAWS"  --  a violation of, or the failure to
      ----------------------------------
perform  any  obligation  imposed  by,  an  Environmental  Law.

     "WELLS"-oil  and gas wells located on the Subject Leases and Prospects, and
      -----
more  particularly  described  on  EXHIBIT  A.

                                        6
<PAGE>

                                    ARTICLE 2

                      SALE AND TRANSFER OF ASSETS; CLOSING

     2.01. ASSETS. Subject to the terms and conditions of this Agreement, at the
           ------
Closing,  Sellers  shall  sell  and  transfer  the  Assets to  Buyer.

     2.02.  PURCHASE  PRICE.  The  purchase  price  for  the  Assets  will  be
            ---------------
THIRTY-THREE  MILLION  DOLLARS  ($33,000,000.00)  (the  "Purchase  Price").  The
Purchase Price for the Assets will be allocated among each of the Assets, as set
forth  in  Schedule 2.02 hereto. The amount so allocated to a part of the Assets
will  constitute  the  Allocated  Values for such part of the Assets. Seller and
Buyer  agree  to  be  bound  by  the  allocation  set forth in Schedule 2.02 for
purposes  of  Article  8  hereof.

     2.03.  CLOSING.  The purchase and sale (the "Closing") provided for in this
            -------
Agreement  will  take  place  at  the  offices of Seller's counsel, at 1:00 p.m.
(local time) on or before APRIL 28, 2006, or at such other time and place as the
parties  may  agree.

     2.04.  CLOSING  OBLIGATIONS.  At  the  Closing:
            --------------------

          (a)  Seller  will  deliver,  or  cause  to  be  delivered,  to  Buyer:

               (i)  the Instruments  of  Conveyance  executed  by  Seller;

               (ii) possession  of  the  Assets;

               (iii) a certificate  executed  by  Seller  representing  and
                    warranting  to  Buyer  that each of Seller's representations
                    and warranties in this Agreement is accurate in all material
                    respects  as  of  the Closing Date as if made on the Closing
                    Date;

               (iv) such documents  as  Buyer  or  counsel  for  Buyer  may
                    reasonably  request,  including  but  not  limited  to
                    letters-in-lieu  of  transfer  order  to  purchasers  of
                    production  from  the  Wells,  and  releases of all recorded
                    Encumbrances  (other  than Permitted Encumbrances) affecting
                    the  Assets;  and

               (v)  the Post-Effective  Time  Credit,  as  defined  in  section
                    2.05(b),  by  wire  transfer  to  the  following  account,
                    provided,  however  that  Seller shall have no obligation to
                    make such wire transfer until confirmation that the Purchase
                    Price  wire  transfer  has  been  received.

                    ACCOUNT NAME:          GULF COAST OIL CORPORATION
                                           5851 SAN FELIPE, SUITE 775
                                           HOUSTON,  TX  77057

                                        7
<PAGE>

                    BANK INFORMATION:      XXXXXXXX XXXXX XXXX
                                           XXX XXXX XXXXX
                                           XXXXXXX XX XXXX
                    ABA BANK ROUTING #:    XXXXXXXXX
                    ACCOUNT # :            XXXXXXXXX

          (b)  Buyer will  deliver  to  Seller:

               (i)  the Purchase  Price,  by  wire  transfer,  in  the following
                    amounts,  to  the  following accounts Buyer shall have fully
                    performed  its  payment  obligations when the Purchase Price
                    arrive  in  the  designated  account,  and  Sellers agree to
                    indemnify  and  hold  Purchaser  harmless for damages or any
                    claims  resulting from any failure thereafter concerning the
                    proper  disbursement  of  the  Purchase  Price;

                       ACCOUNT  NAME:        MANTI  MUSTANG  CREEK,  LTD.
                                             XXX XXXXX XXXXXXXX XXXX XXX
                                             XXXXXX XXXXXXX XX XXXX
                       BANK  INFORMATION:    XXXX XXX XXXXXXX
                                             XXX XXXXXXXX
                                             XXXXXXX XXXXX XXXX
                       ABA  BANK  ROUTING #: XXXXXXXXX
                       ACCOUNT  #  :         XXXXXXXXX
                       AMOUNT:               $25,765,444.00

                       ACCOUNT  NAME:        MANTI  MUSTANG  CREEK,  LTD.
                                             XXX XXXXXXXXXXXX XXXXX XXX
                                             XXXXX XXXXXX XX XXXX
                       BANK  INFORMATION:    XXXXXXX XXXX
                                             XXXX XXXX
                                             XXXXXX XX XXXX
                       ABA BANK ROUTING #:   XXXXXXXXX
                       ACCOUNT  #  :         XXXXXXXXX
                       AMOUNT:               $6,804,556.00

                       ACCOUNT  NAME:        TRISTONE  CAPITAL,  LP
                                             XX XXX XXXX
                                             XXXXXXX XX XXXX
                       BANK  INFORMATION:    XXXXXX XXXXX
                                             XXX XXXX XXXXX XXXX
                                             XXXXXXX XX XXXX
                       ABA BANK ROUTING #:   XXXXXXXXX
                       ACCOUNT  #  :         XXXXXXXXX
                       AMOUNT:               $430,000.00

               (ii) the Instruments  of  Conveyance  executed  by  Buyer;

               (iii) a certificate  executed  by  Buyer  representing  and
                    warranting  to  Seller  that each of Buyer's representations
                    and warranties in this Agreement is accurate in all material
                    respects  as  of  the Closing Date as if made on the Closing
                    Date;  and

                                        8
<PAGE>

               (iv) such other  documents  as  Seller  or  counsel  for  Seller
                    may  reasonably  request.

     2.05.  ALLOCATIONS  AND  ADJUSTMENTS.  If  Closing  occurs:
            -----------------------------

          (a)  Buyer  will  be  entitled  to all revenues, production, proceeds,
     income,  and  products  from or attributable to each Asset on and after the
     relevant  Effective  Time, and will be responsible for (and entitled to any
     refunds  with respect to) all Property Costs attributable to the Assets and
     incurred  on  and  after the Effective Time. Seller will be entitled to all
     revenues,  production,  proceeds, income, and products from or attributable
     to each Asset prior to the Effective Time, and will be responsible for (and
     entitled to any refunds with respect to) all Property Costs attributable to
     each  Asset  and  incurred  prior  to  the  Effective  Time and all Capital
     Expenditures.  "Property  Costs"  will mean all amounts attributable to the
     operation  and  ownership  of  the Assets incurred and paid in the Ordinary
     Course  of  Business  less and except Capital Expenditures. For purposes of
     allocating  production,  products,  accounts  receivable and proceeds under
     this  Section,  (i)  liquid  hydrocarbons  will  be  deemed  to be "from or
     attributable  to"  the Wells when they pass through the pipeline connecting
     into  the  storage  facilities  into  which  they  are run and (ii) gaseous
     hydrocarbons will be deemed to be "from or attributable to" Wells when they
     pass through the delivery point sales meters on the pipelines through which
     they  are  transported.  In order to accomplish the foregoing allocation of
     production  the  parties  will  rely  upon  gauging, metering and strapping
     procedures conducted by Seller on or about the Effective Time to the extent
     possible  and  unless demonstrated to be inaccurate will utilize reasonable
     interpolating  procedures  to  arrive  at  an allocation of production when
     exact  gauging,  metering and strapping data is not available on hand as of
     the  Effective  Time. Seller will provide to Buyer evidence of all gauging,
     metering  and  strapping  procedures conducted hereunder in connection with
     the  Wells,  together  with  all  data  necessary  to support any estimated
     allocation,  for  purposes  of  establishing the adjustment to the Purchase
     Price.  Ad  valorem  taxes for 2005 will be prorated on a daily basis, with
     Buyer  liable  for  the  portion  allocated  to the period on and after the
     Effective  Time  and  Seller liable for the portion allocated to the period
     before the Effective Time. If the amount of such taxes for part, or all, of
     the  Assets  is not available on the Closing Date, proration of taxes shall
     be  made  on  the  basis  of  taxes  assessed  in the previous year, with a
     subsequent  cash adjustment of such proration to be made between Seller and
     Buyer,  when  actual  tax  figures  are  available.

          (b)  The  Post-Effective  Time  Credit  will  be, without duplication,
     determined  by  a  calculation  wherein

               (i)  the  following  amounts  are  subtracted:

                    (A)  the aggregate  amount  of  all  non-reimbursed
                         Property  Costs  which  are  attributable to the period
                         from  the  Effective Time to the Closing Date and which
                         are  incurred  and  paid  by Seller with respect to the
                         Wells  and  Subject  Leases;

                                        9
<PAGE>

                    (B)  an amount  equal  to  the  agreed  value  of  all
                         Hydrocarbons  in  storage above the pipeline connection
                         at the Effective Time that is credited to the Wells and
                         which  stored Hydrocarbons have not been sold by Seller
                         or  for  which  Seller  has  not  been  paid;

                    (C)  the amount  of  any  upward  adjustment  pursuant  to
                         Section  8.04;

                    (D)  any other  upward  adjustment  mutually  agreed  upon
                         by  the  parties;

               (ii) the following  amounts  are  added:

                    (A)  the aggregate  amount  of  proceeds  received  by
                         Seller  from the sale of Hydrocarbons produced from and
                         attributable  to  the  Wells between the Effective Time
                         and  the  Closing  Date;

                    (B)  the amount  of  any  downward  adjustment  relating  to
                         Title  Defects  as  set  forth  in  Article  8;

                    (C)  the amount  of  any  adjustment  relating  to  an
                         uninsured  casualty  as  required  by  Section  8.09;

                    (D)  Seller'  s  share  of  estimated  ad  valorem  taxes
                         through  the  Effective  Time;  and

                    (E)  the amount  of  any  downward  adjustment  mutually
                         agreed  upon  by  the  parties.

     The  net  product  of  this  calculation  is  herein  referred  to  as  the
"Post-Effective  Time  Credit."

          (c)  Subject  to  the  arbitration  provisions  of  Article 9.14 as to
     adjustments  under  Section  2.05(b)(ii)(b),  as  soon as practicable after
     Closing,  but  no  later  than ninety (90) days following the Closing Date,
     Seller will prepare and submit to Buyer, a statement (the "Final Settlement
                                                                ----------------
     Statement")  setting forth each adjustment or payment which was not finally
     ---------
     determined  as of the Closing Date and showing the values used to determine
     such  adjustments  to reflect the final adjusted Purchase Price (the "Final
                                                                           -----
     Amount").  On  or  before  thirty  (30)  days  after  receipt  of the Final
     ------
     Settlement  Statement,  Buyer  will  deliver  to  Seller  a  written report
     containing any changes which Buyer proposes be made to the Final Settlement
     Statement.  Seller  and  Buyer shall undertake to agree with respect to the
     amounts  due  pursuant  to  the  post-closing  adjustment no later than one
     hundred  fifty  (150)  days  from the Closing Date. If Seller and Buyer are
     unable  to agree within one hundred fifty (150) days after the Closing Date
     as to adjustment matters not subject to arbitration in accordance with this

                                       10
<PAGE>

     Agreement,  Seller  will  select  an  independent accounting firm in Corpus
     Christi,  Texas, from a list of three such firms provided by Buyer (none of
     which  will  be  the independent accounting firm regularly used by Buyer or
     Seller), which firm will audit the Final Settlement Statement and determine
     the  Purchase  Price  adjustment  or  payment amount in accordance with the
     terms  and  conditions  set  forth  in this Agreement. The decision of such
     independent  accounting  firm  will be binding on Seller and Buyer, and the
     fees  and  expenses  of  such  independent  accounting  firm  will be borne
     one-half  by  Seller  and  one-half  by  Buyer.  The  date  upon which such
     agreement  is  reached  or  upon  which  the  Purchase  Price  is otherwise
     established,  as  provided  in  the  preceding sentence, will be called the
     "Settlement  Date." In the event that (a) the Final Amount is more than the
     Purchase  Price  less  the  Post-Effective  Time  Credit, Buyer will pay to
     Seller  the  amount of the difference; or (b) the Final Amount is less than
     the  Purchase Price less the Post-Effective Time Credit, Seller will pay to
     Buyer  the  amount of the difference. Such payment will be made within five
     (5)  business  days  of  the  Settlement Date via wire transfer to accounts
     specified  by  Seller  or  Buyer  as  appropriate.

     2.06.  ASSUMPTION.  If the Closing occurs, from and after the Closing Date,
            ----------
Buyer  will  assume,  pay,  and  discharge  the  following liabilities ("Assumed
Liabilities"):

     Any  and  all  duties,  claims,  damages, expenses, fines, penalties, costs
(including  attorneys'  fees  and  expenses),  liabilities,  and  obligations
(collectively  the  "Obligations") (i) arising from or relating to the ownership
or operation of the Assets from and after the Effective Time under any Contract,
Governmental  Authorization,  or  Subject  Lease  relating  to  the Assets, (ii)
imposed  by  any  Legal  Requirement relating to the Assets, (iii) for plugging,
abandonment, and surface restoration of the oil, gas, injection, water, or other
wells  located  on  the  lands covered by the Subject Leases, (iv) from any act,
omission,  event,  condition,  or  occurrence  subsequent  to the Effective Time
relating  to  the  Assets, and (v) attributable to all Environmental Liabilities
relating  to  the Assets; provided, however, the provisions of this Section 2.06
will  not  relieve Seller from liability resulting from a Breach, if any, of its
representations,  warranties  or  covenants  under  this  Agreement.

     2.07.  DELIVERY  OF  RECORDS.  Subject  to the terms and conditions of this
            ---------------------
Agreement, Seller agrees to, within five (5) working days of Closing, deliver to
Buyer,  all of the files, records, documents, correspondence and data now in the
possession or control of Seller that relates to the Assets (the "Records"). This
will  include:

               (i)  Title opinions  and  title  status  reports  pertaining  to
                    the  Assets;

               (ii) Copies  of  the  Subject  Leases,  prior  conveyances of the
                    Assets,  unitization,  pooling  and  operating  agreements,
                    division  and  transfer  orders,  mortgages, deeds of trust,
                    security  arrangements,  chattel  mortgages,  financing
                    statements  and  other  encumbrances  not  discharged  and
                    affecting  the  title  to or the value of the Assets and all
                    other  information contained in the land files of Seller and
                    relating  to  the  Assets;

                                       11
<PAGE>

               (iii) Records  relating  to  the  payment  of  rentals, royalties
                    and  other  payments  due  under  the  Subject  Leases;

               (iv) Records  relating  to  the  payment  of  ad  valorem,
                    property,  production,  severance,  excise and similar taxes
                    and  assessments  based  on  or measured by the ownership of
                    property or the production of hydrocarbons or the receipt of
                    proceeds  therefrom  on  the  Assets;

               (v)  Ownership  maps,  surveys,  logs  and  seismic  information
                    relating  to  the  Assets;

               (vi) Copies  of  all  purchase,  sale,  processing  and
                    transportation  agreements  relating  to  the  Assets;

               (vii) Copies  of  all  agreements  including  the  leases,
                    permits,  easements,  licenses  and  orders  relating to the
                    Assets;

               (viii) Production  and  operational  records  relating  to  the
                    Assets,  including  filings  made  with regulatory agencies;

               (ix) Inventories  of  personal  property  and  fixtures  included
                    in  the  Assets;

               (x)  Accounting  records,  and  engineering  and  technical data,
                    and geological and geophysical data, relating to the Assets;
                    and

               (xi) Digital  and  paper  copies  of  all  marketing  materials
                    used  in  the  Tristone  data  room,  including  seismic and
                    individual  prospect  montages.

     Notwithstanding  the foregoing, Seller shall not be under any obligation to
release  any  documentation  or records that Seller cannot without violating any
contractual  commitment  to  third parties provided, however, such documentation
shall  be  provided to the extent a waiver of any such contractual commitment is
obtained.  Buyer  shall  permit  Seller,  at  Seller's  expense,  to inspect and
photocopy  such  information  and records at any reasonable time but only to the
extent,  in  each  case,  that Buyer may do so without violating any contractual
commitment  to  a  third  party.

     2.08.  SUSPENDED  FUNDS.  As  soon as practicable after the Closing, Seller
            ----------------
will  provide  to  Buyer  a  listing  showing  all  proceeds  from  production
attributable to the Leasehold Interests which are currently held in suspense and
shall  transfer to Buyer all of those suspended proceeds. Upon request by Buyer,
Seller  shall  also  provide Buyer with copies of documents and other historical
information  with respect to such proceeds. Upon receipt of such proceeds, Buyer
shall  be  responsible for proper distribution of all the suspended proceeds, to
the  extent  turned  over  to  it by Seller, to the parties lawfully entitled to
them,  and  hereby agrees to indemnify, defend and hold harmless Seller from and
against any and all claims, liabilities, losses, costs and expenses, arising out
of  or  relating  to those suspended proceeds to the extent turned over to it by
Seller;  provided,  however,  that Seller shall, for a period continuing through

                                       12
<PAGE>

and  until  the  second  anniversary  of  the  Closing, indemnify and hold Buyer
harmless  from  and  against  any and all claims, liabilities, losses, costs and
expenses associated with any claims against the suspended proceeds to the extent
such claim exceeds the proceeds transferred to Buyer in respect of such claimant
and  arises  solely  from  Seller's actions or omissions prior to the date Buyer
receives  such  suspended  proceeds.

     2.09.  AGREEMENT  REGARDING  FUTURE  ACTIVITY  For  a  period of four years
            --------------------------------------
following  the  Closing,  Sellers, on behalf of themselves and their Affiliates,
agree not to acquire or attempt to acquire any interest in any oil and gas lease
that  is  located  in  whole  or in part within the boundaries of the outline on
Schedule  2.09  attached  hereto.

     2.10.  Contract  Rights Assignment.   Subject  to  the terms and conditions
            ---------------------------
of  this  Agreement,  Sellers  hereby  sell  and convey to Buyer all of Sellers'
rights with respect to any written agreement or contract that is legally binding
relating  to  the  Subject Leases or Wells, including without limitations, those
listed  on  Exhibit  B.

                                    ARTICLE 3

                    REPRESENTATIONS AND WARRANTIES OF SELLER

     Each  Seller,  severally  as  to  its  respective interest and not jointly,
represents  and  warrants  to  Buyer  as  follows:

     3.01.  ORGANIZATION  AND  GOOD  STANDING.  Manti  Resources, Inc. and Manti
            ---------------------------------
Operating  Company are Texas corporations, Manti Mustang Creek, LTD., is a Texas
Limited Partnership,duly organized, validly existing, and in good standing under
the  laws  of its state of organization and every state in which it is qualified
to  do business, with full corporate power and authority to conduct its business
as  it  is now being conducted, and to own or use the properties and assets that
it  purports  to  own  or  use. Seller is not a "foreign person" for purposes of
Section  1445  or  Section  7701  of  the  IRC.

     3.02.  AUTHORITY;  NO  CONFLICT.
            ------------------------

          (a)  This  Agreement  constitutes  the  legal,  valid,  and  binding
     obligation  of  Seller,  enforceable  against Seller in accordance with its
     terms.  Upon  the  execution  and  delivery by Seller of the Instruments of
     Conveyance  and any other documents executed and delivered by Seller at the
     Closing  (collectively, the "Seller's Closing Documents"), Seller's Closing
     Documents  will  constitute  the  legal,  valid, and binding obligations of
     Seller,  enforceable  against  Seller  in  accordance with their respective
     terms.  Except as set forth in Part 3.02 of the Disclosure Schedule, Seller

                                       13
<PAGE>

     has  the absolute and unrestricted right, power, authority, and capacity to
     execute  and  deliver this Agreement and Seller's Closing Documents, and to
     perform  its  obligations  under  this  Agreement  and  Seller's  Closing
     Documents.

          (b)  Except  as  set  forth  in  Part 3.02 of the Disclosure Schedule,
     neither  the  execution and delivery of this Agreement nor the consummation
     or  performance  of  any of the Contemplated Transactions will, directly or
     indirectly  (with  or  without  notice  or  lapse  of  time):

               (i)  contravene,  conflict  with,  or  result  in  a violation of
                    (A) any provision of the Organizational Documents of Seller,
                    or  (B)  any resolution adopted by the board of directors or
                    the  stockholders  of  Seller;

               (ii) contravene,  conflict  with,  or  result  in a violation of,
                    or  give  any Governmental Body or other Person the right to
                    challenge  any  of  the  Contemplated  Transactions  or  to
                    exercise any remedy or obtain any relief under, any contract
                    or  agreement  or  any  Legal  Requirement or Order to which
                    Seller,  or  any  of  the  Assets,  may  be  subject;

               (iii) contravene,  conflict  with,  or  result  in a violation of
                    any  of  the  terms  or  requirements  of,  or  give  any
                    Governmental  Body  the  right to revoke, withdraw, suspend,
                    cancel, terminate, or modify, any Governmental Authorization
                    that  relates  to  the  Assets;

               (iv) contravene,  conflict  with,  or  result  in  a violation or
                    breach  of any provision of, or give any Person the right to
                    declare  a  default  or  exercise  any  remedy  under, or to
                    accelerate  the  maturity  or  performance of, or to cancel,
                    terminate,  or  modify,  any  Contract;  or

               (v)  result  in  the  imposition  or  creation of any Encumbrance
                    upon  or  with  respect  to  any  of  the  Assets.

          (c)  Except  as  set  forth  in  Part 3.02 of the Disclosure Schedule,
     Seller  is  not  nor  will  be required to give any notice to or obtain any
     Consent  from  any  Person in connection with the execution and delivery of
     this  Agreement  or  the  consummation  or  performance  of  any  of  the
     Contemplated  Transactions.  If  any such consent is required, such consent
     shall  be  given  in writing not less than three (3) business days prior to
     Closing.

     3.03.  BANKRUPTCY.  There are no bankruptcy, reorganization, or arrangement
            ----------
proceedings  being  contemplated  by  Seller  or  pending  or Threatened against
Seller.

     3.04. TAXES. Seller has filed or caused to be filed all Tax Returns that it
           -----
has  been  or  was  required  to  file,  either  separately  or as a member of a
consolidated  group,  pursuant to applicable Legal Requirements. All Tax Returns
filed by (or that include on a consolidated basis) Seller are true, correct, and

                                       14
<PAGE>

complete.  Seller  has paid all Taxes that have become due pursuant to those Tax
Returns  or  otherwise, or pursuant to any assessment received by Seller, to the
extent  not being contested in good faith. Seller does not have any Knowledge of
any Threatened Tax assessment against it except as disclosed in Part 3.05 of the
Disclosure  Schedule.

     3.05.  LEGAL  PROCEEDINGS;  ORDERS.
            ---------------------------

          (a)  Except  as  set  forth  in  Part 3.05 of the Disclosure Schedule,
               there  is  no  pending  Proceeding:

               (i)  that relates  to  or  may  affect  any  of  the  Assets;  or

               (ii) that challenges,  or  that  may  have  the  effect  of
                    preventing,  delaying,  making  illegal,  or  otherwise
                    interfering  with,  any  of  the  Contemplated Transactions.

          (b)  Except  as  set  forth  in  Part 3.05 of the Disclosure Schedule,
               to Seller's Knowledge (1) no Proceeding of the type referenced in
               Section  3.05  (a) has been Threatened, (2) no event has occurred
               nor does any circumstance exist that may give rise to or serve as
               a  basis  for the commencement of any such Proceeding, and (3) no
               basis  exists  for  any claim by any employee of Seller under any
               Legal  Requirement  for  which  Buyer  could  become  liable as a
               successor  or  otherwise.

          (c)  Except  as  set  forth  in  Part 3.05 of the Disclosure Schedule,
               there  is no Order relating to the use or ownership of the Assets
               to  which  Seller,  or  any  of  the  Assets,  is  subject.

     3.06. ENVIRONMENTAL. To the Knowledge of Seller, there are no Violations of
           -------------
Environmental  Laws  that  arise  from events occurring during the period Seller
owned  the  affected  Assets , which have not been corrected or remediated under
the  requirements  of  any  Governmental  Body  having  jurisdiction, and to the
Knowledge  of  Seller,  there  are  no Environmental Liabilities that arise from
events  occurring  prior  to  Seller's  ownership  of  the  Assets.

     There  are  no environmental investigations, studies or audits with respect
to  any  of the Assets owned or commissioned by, or in the possession of, Seller
or  Affiliates  which  have  not  been  disclosed  in  writing  to  Buyer.

     Sellers have, at their own expense, covered every open pit related to their
operations  on the affected Assets and disposed of all associated drill cuttings
in  accordance  with  the  requirements  of  any  Governmental  Body  having
jurisdiction.

     3.07.  PERSONAL  PROPERTY.  To  the  extent  the Assets constitute personal
            ------------------
property  or fixtures, Seller EXPRESSLY DISCLAIMS AND NEGATES (A) ANY IMPLIED OR
                              --------------------------------------------------
EXPRESS  WARRANTY  OF  MERCHANTABILITY,  (B)  ANY IMPLIED OR EXPRESS WARRANTY OF
--------------------------------------------------------------------------------

                                       15
<PAGE>

FITNESS  FOR  A  PARTICULAR  PURPOSE,  (C)  ANY  IMPLIED  OR EXPRESS WARRANTY OF
--------------------------------------------------------------------------------
CONFORMITY  TO MODELS OR SAMPLES OF MATERIALS, AND (D) ANY OTHER WARRANTY OF ANY
--------------------------------------------------------------------------------
NATURE,  EXPRESS  OR IMPLIED, EXCEPT AS EXPRESSLY PROVIDED HEREIN, AND ARE TO BE
--------------------------------------------------------------------------------
CONVEYED  "AS  IS"  AND  "WHERE  IS",  WITH  ALL  FAULTS.
--------------------------------------------------------

     3.08. TITLE TO PROPERTIES. On the Closing Date, Seller will convey to Buyer
           -------------------
Defensible  Title to the Assets. Seller has delivered or made available to Buyer
all  items  in its possession which would be relevant in the determination as to
whether  Seller  has  the  ability  to  convey  Defensible  Title to the Assets.
Notwithstanding  any  other  provision  herein,  or  in  any Assignment, Sellers
specially  warrant  title  to  the  Assets  by,  through and under them, but not
otherwise.

     3.09.  BROKERS.  Seller  has  not  incurred  any  obligation  or liability,
            -------
contingent  or  otherwise,  for  broker's  or  finder's fees with respect to the
transactions contemplated by this Agreement other than obligations which are the
sole  responsibility  of  Seller.

     3.10.  TAX  SHARING  AGREEMENTS. There are no tax sharing agreements or any
             -----------------------
other  contract  relating  to  the  sharing  or  payment  of  any  Tax.

     3.11.  CONSENTS.  Part  3.11  of  the  Disclosure  Schedule  sets forth all
            --------
consents  and  approvals  which  are  required  in  order  to  consummate  the
transactions  contemplated  hereunder.

     3.12.  GAS  IMBALANCES,  PREPAYMENT ARRANGEMENTS; TAKE-OR-PAY. There are no
            ------------------------------------------------------
gas  imbalances  between  Seller  and any third party working interest owners or
gatherers or transporters relative to the Assets, and Seller is not obligated by
any gas prepayment arrangement or by any take-or-pay requirement or by any other
financial  penalty  or  payback  obligation  to deliver any gas at a future time
without  then  or  thereafter  receiving  payment  therefore.

     3.13.  STATUS OF LEASES. With respect to the oil, gas and/or mineral leases
            ----------------
comprising  part  of the Assets (i) to Seller's Knowledge, such leases have been
maintained  according to their terms, in compliance with the agreements to which
such  leases  are  subject; (ii) to Seller's Knowledge all royalties (other than
royalties  held  in  suspense),  delay rentals and other payments due under such
leases  have  been properly and timely paid and all conditions necessary to keep
such  leases  in  force  have been fully performed; (iii) to Seller's Knowledge,
except  as  shown on the Exhibits hereto, and without expanding or enlarging any
warranty of title given elsewhere herein, such leases are presently in force and
effect;  and  (iv) neither Seller nor, to Seller's Knowledge, any other party to
any  such lease has received notice of any claim or action seeking to terminate,
cancel,  rescind  or  procure  a  judicial  reformation of any such lease or any
provisions thereof or seeking the release of any such lease (or portion thereof)
comprising  any  part  of  the  Assets.

     3.14.  CONTRACTS.  Exhibit  B  contains  a  complete  list  of the material
            ---------
Contracts  comprising  a  part of the Assets. Seller has made available to Buyer
complete  and correct copies of all Contracts listed on Exhibit B. Except as set
forth  on Parts 3.02 and 3.14 of the Disclosure Schedule, Seller has received no

                                       16
<PAGE>

written  notice  of  any  threatened  cancellation  of  any  Contract  nor  any
outstanding  disputes  thereunder,  and,  assuming  all  required  consents  are
received,  Seller  has  not and will not have breached any provision of, nor, to
Seller's  Knowledge,  does  there exist any default under, or event, that is, or
with  the  giving of notice or the passage of time or both would become a breach
or  default  in respect under the terms of any Contract. The Contracts have been
duly executed by Seller, constitute valid and enforceable obligations of Seller,
and  are  freely  assignable without the consent of third parties. Except as set
forth  on  Part  3.14  of  the  Disclosure  Schedule,  there are no gas purchase
Contracts  which  may  not be canceled by Seller upon ninety (90) days notice to
the  other  party.

                                    ARTICLE 4

                     REPRESENTATIONS AND WARRANTIES OF BUYER

     Buyer  represents  and  warrants  to  Seller  as  follows:

     4.01.  ORGANIZATION  AND  GOOD  STANDING.  Buyer is duly organized, validly
            ---------------------------------
existing,  and in good standing under the laws of the State of Texas and in each
jurisdiction  in  which  it  conducts  business,  including  Texas.

     4.02.  AUTHORITY;  NO  CONFLICT.
            ------------------------

          (a)  This Agreement  constitutes  the  legal,  valid,  and  binding
               obligation of Buyer, enforceable against Buyer in accordance with
               its  terms.  Upon  the  execution  and  delivery  by Buyer of the
               Instruments  of  Conveyance  and any other documents executed and
               delivered  by  Buyer  at  the Closing (collectively, the "Buyer's
               Closing  Documents"),  the  Buyer's  Closing  Documents  will
               constitute  the  legal,  valid,  and binding obligations of Buyer
               enforceable  against  Buyer  in  accordance with their respective
               terms.  Buyer has the absolute and unrestricted right, power, and
               authority  to  execute and deliver this Agreement and the Buyer's
               Closing  Documents,  and  to  perform  its obligations under this
               Agreement  and  the  Buyer's  Closing  Documents.

          (b)  Except  as  disclosed  to  Buyer  on  Part 3.02 on the Disclosure
               Schedule, neither the execution and delivery of this Agreement by
               Buyer  nor  the  consummation  or  performance  of  any  of  the
               Contemplated Transactions by Buyer will give any Person the right
               to  prevent,  delay,  or  otherwise  interfere  with  any  of the
               Contemplated  Transactions.

          (c)  Except  as  disclosed  to  Buyer  on  Part 3.02 on the Disclosure
               Schedule,  Buyer  is  not  and  will  not be required to give any
               notice  to  or  obtain  any Consent from any Person in connection
               with  the  execution  and  delivery  of  this  Agreement  or  the
               consummation  or  performance  of  any  of  the  Contemplated
               Transactions.

                                       17
<PAGE>

     4.03.  CERTAIN  PROCEEDINGS.  There  is no pending Proceeding that has been
            --------------------
commenced  against  Buyer  and  that  challenges,  or  may  have  the  effect of
preventing,  delaying, making illegal, or otherwise interfering with, any of the
Contemplated  Transactions.  To  Buyer's  Knowledge, no such Proceeding has been
Threatened.

     4.04.  KNOWLEDGEABLE  INVESTOR.  Buyer  is an experienced and knowledgeable
            -----------------------
investor  in  the  oil  and gas business. Prior to entering into this Agreement,
Buyer  was  advised  by  its  own  legal,  tax,  and  other professional counsel
concerning  this  Agreement, the Contemplated Transactions, the Assets and their
value,  and it has relied solely thereon and the representations and obligations
of  Sellers  in  this  Agreement  and the documents to be executed by Sellers in
connection with this Agreement at Closing. Buyer is acquiring the Assets for its
own  account  and  not  for  distribution.

     4.05.  SECURITIES  LAWS.  The  solicitation  of  offers and the sale of the
            ----------------
Assets  by  Sellers  have  not  been registered under any securities laws. Buyer
represents that at no time has it been presented with or solicited by or through
any  public  promotion  or  any  form  of  advertising  in  connection with this
transaction.  Buyer represents that it intends to acquire the Assets for its own
benefit  and  account and that it is not acquiring the Assets with the intent of
distributing fractional, undivided interests that would be subject to regulation
by  federal  or  state  securities  laws,  and  that  if it sells, transfers, or
otherwise  disposes  of  the Assets or fractional undivided interest therein, it
will  do  so  in  compliance  with applicable federal and state securities laws.

     4.06.  DUE  DILIGENCE.  Buyer  represents that  it  has  performed, or will
            -------------
perform, before closing, sufficient review and due diligence with respect to the
Assets,  which  includes  reviewing  well  data  and  other  files in performing
necessary  evaluations,  assessments, and other tasks involved in evaluating the
Assets  to  satisfy  its  requirements  completely  and  to enable it to make an
informed  decision  to  acquire  the  Assets  under the terms of this Agreement.

     4.07.  BASIS  OF  BUYER'S DECISION.  Buyer represents that by reason of its
            ---------------------------
knowledge and experience in the evaluation, acquisition and operation of oil and
gas  properties,  Buyer has evaluated the merits and the risks of purchasing the
Assets  from Sellers and has formed an opinion based solely on Buyer's knowledge
and  experience  and  not on any representations or warranties by Sellers. Buyer
represents that it has not relied and will not rely on any statements by Sellers
or  their representatives in making its decision to enter into this Agreement or
to  close  this  transaction.

     4.08.  MATERIAL  FACTOR.   Buyer  acknowledges that Buyer's representations
            ----------------
under  this  Article  are  a  material  inducement to Sellers to enter into this
Agreement  with,  and  close  the  Contemplated  Transactions  with  Buyer.

                                    ARTICLE 5

                               COVENANTS OF SELLER

                                       18
<PAGE>

     5.01.  ACCESS  AND INVESTIGATION. Prior to the Closing Date, Seller has (a)
            -------------------------
afforded  Buyer  and  its  Representatives  (collectively,  "Buyer's  Advisors")
reasonable  access  to  Seller's  personnel,  properties,  contracts,  books and
records,  and other documents and data, (b) furnished Buyer and Buyer's Advisors
with  copies  of  all  such  contracts,  books  and  records, and other existing
documents  and data as Buyer may reasonably request, and (c) furnished Buyer and
Buyer's  Advisors  with such additional financial, operating, and other data and
information  as Buyer may reasonably request; PROVIDED THAT, EXCEPT AS EXPRESSLY
                                              ----------------------------------
PROVIDED  HEREIN,  SELLER  MAKES  NO  WARRANTY,  AND  EXPRESSLY  DISCLAIMS  ALL
--------------------------------------------------------------------------------
WARRANTIES  AS  TO  THE  ACCURACY OR COMPLETENESS OF THE DOCUMENTS, INFORMATION,
--------------------------------------------------------------------------------
BOOKS,  RECORDS,  FILES  AND  OTHER PERTINENT DATA THAT IT MAY PROVIDE TO BuyeR.
--------------------------------------------------------------------------------

     5.02. OPERATION OF THE ASSETS. Sellers have, for the last thirty (30) days,
           -----------------------
conducted  the  business  relating  to the Assets only in the Ordinary Course of
Business.  By  way  of  example,  and  not  as a limitation, during such period,
Sellers  have  used  commercially  reasonable  efforts  to:

          (a)  maintain  the  Assets  and  operate  the  Assets  or  cause  the
               Assets  to  be  operated  in  the  Ordinary  Course  of Business;

          (b)  except  for  those  leases  listed  on  Schedule  5.02  ,  pay or
               cause  to  be paid all bonuses and rentals, royalties, overriding
               royalties,  shut-in  royalties,  and  minimum  royalties  and
               development  and  operating  expenses,  current  taxes  and other
               payments  incurred  with  respect  to the Assets except royalties
               held in suspense as a result of title issues and that do not give
               any  third  party  a  right to cancel an interest in an Asset and
               except  for  expenses being contested in good faith and for which
               adequate  reserves  have  been  provided;

          (c)  maintain  the  personal  property  comprising  part of the Assets
               in  at  least  as  good  a condition as it is on the date hereof,
               subject  to  ordinary  wear  and  tear;  and,

          (d)  safeguard  and  maintain  confidential  all  records  of  a
               nonpublic  nature  (including  without  limitation geological and
               geophysical  data  and  maps  and  interpretations  thereof) that
               relate  to  the  Assets.

          Similarly,  during  the  last  thirty  (30)  days,  Sellers  have not,
          except  in  the  Ordinary  Course  of  Business:

          (a)  taken any  action  that  would  cause  its  representations  or
               warranties  to  be  materially  incorrect as of the Closing Date;

          (b)  abandoned  any  Asset  (except  the  abandonment  of  producing
               leases  not  capable  of producing in paying quantities after the
               expiration  of  their primary terms and having secured consent to
               such  abandonment  from  Buyer);

                                       19
<PAGE>

          (c)  commenced,  proposed,  or  agreed  to  participate  in any single
               operation  with  respect  to  the Wells or Subject Leases with an
               anticipated  cost  in  excess of $25,000 without notice to Buyer,
               except  for  emergency  operations;

          (d)  elected  to  participate  in  any  single operation proposed by a
               third  party  with respect to the Wells or Subject Leases with an
               anticipated  cost  in  excess of $25,000 without notice to Buyer,
               except  for  emergency  operations;

          (e)  terminated  or  materially  amended  or  modified  any  Contract
               set  forth  on  the  Disclosure  Schedule;

          (f)  waived  any  right  of  material  value  under  any  Contract set
               forth  on  the  Exhibit  B  or  relating  to  the  Wells;

          (g)  except  for  those  leases  listed  on  Schedule  5.02,  sold,
               leased, encumbered or otherwise disposed of all or any portion of
               any Assets except sales of Hydrocarbons in the Ordinary Course of
               Business;  or

          (h)  entered  into  any  new  production  sales, processing, gathering
               or  transportation  agreement  with  respect  to  the  Wells  not
               terminable  at  will  without  penalty  by Buyer after Closing on
               thirty  (30)  days  notice  or  less.

     5.03.  INSURANCE. Sellers have maintained in force until the Closing all of
            ---------
Sellers'  general  liability,  workers  compensation,  auto  liability  and well
control  insurance policies covering the Assets (provided that the costs of such
insurance  will  constitute  Property  Costs.)

     5.04.  CONSENT  AND  WAIVERS.  Sellers  have  used  commercially reasonable
            ---------------------
efforts  to  obtain  prior  to  Closing  waivers  of  all preferential rights to
purchase  and  all waivers and Consents necessary for the transfer of the Assets
to  Buyer.  If  all waivers and Consents have not been received prior to Closing
Date,  Sellers  will  use commercially reasonable efforts to obtain said waivers
and  Consents  after  the  Closing  Date; provided that in the event Sellers are
unable  to  obtain  all  such  waivers  and Consents after using such reasonable
efforts, such failure to satisfy will not constitute a Breach of this Agreement.

     5.05.  EXTRAORDINARY  EVENTS.  To  Sellers'  knowledge,  no  Extraordinary
            ---------------------
Operational  Event  has  occurred  from  the  Effective  Date until the Closing.
Extraordinary  Operational  Event refers to any operation or event in connection
with  the  Assets,  other  than  day  to  day  ordinary  operations,  that could
reasonably  result  in  claims  by  any  persons  that  would  exceed  $25,000.

     5.06.  MATERIAL  FACTOR.  Sellers acknowledge that Sellers' representations
            ----------------
under  this  Article  are  a  material  inducement  to  Buyer to enter into this
Agreement  and  close  the  Contemplated  Transactions  with  Sellers.

                                       20
<PAGE>

                                    ARTICLE 6

                               COVENANTS OF BUYER

     6.01.  NOTIFICATION. Prior to the Closing Date, Buyer has promptly notified
            ------------
Sellers in writing of any such fact or condition that requires any change in the
Disclosure  Schedule.

                                    ARTICLE 7

                            INDEMNIFICATION; REMEDIES

     7.01.  SURVIVAL.  Subject to Section 7.04, all representations, warranties,
            --------
covenants,  and  obligations  in  this  Agreement,  the Disclosure Schedule, the
certificates  delivered  pursuant  to Section 2.04, and any other certificate or
document  delivered  pursuant to this Agreement will survive the Closing, except
to  the  extent  of  any  written  waiver  signed  by  the  waiving  party.

     7.02. INDEMNIFICATION AND PAYMENT OF DAMAGES BY SELLER. Except as otherwise
           ------------------------------------------------
limited in this Article 7, each Seller, severally as its interest may appear and
not  jointly,  will  indemnify  and  hold  harmless  Buyer  and  its  respective
Representatives,  stockholders,  controlling  persons,  directors, officers, and
affiliates  (collectively, the "Buyer Indemnified Persons") for, and will pay to
the  Buyer  Indemnified  Persons  the  amount of, any loss, liability, claim, or
damage,  whether or not involving a third-party claim (collectively, "Damages"),
arising  from:

          (a)  any Breach  of  any  representation  or  warranty  made by Seller
               in this Agreement, or in any certificate delivered by such Seller
               pursuant  to  this  Agreement;

          (b)  any Breach  by  Seller  of  any  covenant or obligation of Seller
               in  this  Agreement;

          (c)  any claim  by  any  Person  for  brokerage  or  finder's  fees or
               commissions  or  similar  payments  based  upon  any agreement or
               understanding  alleged  to have been made by any such Person with
               Seller  (or  any  Person acting on its behalf) in connection with
               any  of  the  Contemplated  Transactions;  or

          (d)  if Closing  occurs,  the  use,  ownership  or  operation  of  the
               Assets  by  Seller  prior  to  the  Effective Time, except to the
               extent  assumed  by  Buyer  as  Assumed  Liabilities.

     Except  for  Buyer's  termination rights under Article 8 of this Agreement,
the remedies provided in this Article 7 (if Closing occurs) and Section 2.02 (if
Closing  does  not  occur)  are Buyer's and Buyer Indemnified Persons' exclusive
remedies  for  Seller's  Breaches.

                                       21
<PAGE>

     7.03.  INDEMNIFICATION AND PAYMENT OF DAMAGES BY BUYER. Except as otherwise
            -----------------------------------------------
limited  in  this  Article 10, Buyer will indemnify and hold harmless Seller and
its Representatives, stockholders, controlling persons, directors, officers, and
affiliates  (collectively,  the  "Seller  Indemnified Persons"), and will pay to
Seller  Indemnified  Persons  the  amount  of  any  Damages  arising  from:

          (a)  any Breach  of  any  representation  or  warranty  made  by Buyer
               in  this  Agreement  or  in  any  certificate  delivered by Buyer
               pursuant  to  this  Agreement;

          (b)  any Breach  by  Buyer  of  any  covenant  or  obligation of Buyer
               in  this  Agreement;

          (c)  ANY LOSS,  LIABILITY,  CLAIM,  DAMAGE  OR  SUIT  WHICH  ANY  OF
               -----------------------------------------------------------------
               BUYER'S EMPLOYEES OR AGENTS OR THEIR HEIRS, EXECUTORS, OR ASSIGNS
               -----------------------------------------------------------------
               MAY ASSERT AGAINST SELLER, BASED UPON INJURY TO PERSON, INCLUDING
               -----------------------------------------------------------------
               DEATH  OR  TO PROPERTY, ARISING IN ANY MANNER WHATSOEVER FROM ANY
               -----------------------------------------------------------------
               INSPECTIONS OF SELLER'S PROPERTY PRIOR TO CLOSING, WHETHER OR NOT
               -----------------------------------------------------------------
               BASED  UPON  STRICT LIABILITY OR CAUSED BY THE SOLE OR CONCURRENT
               -----------------------------------------------------------------
               NEGLIGENCE  (WHETHER  ACTIVE OR PASSIVE) OF SELLER, OR ANY PERSON
               -----------------------------------------------------------------
               OR  ENTITY, UNLESS SUCH INJURY WAS OCCASIONED SOLELY BY THE GROSS
               -----------------------------------------------------------------
               NEGLIGENCE  OR  INTENTIONAL  TORT  OF  SELLER  OR  ANY  OFFICER,
               -----------------------------------------------------------------
               DIRECTOR,  OR  EMPLOYEE  OR  AGENT  THEREOF; PROVIDED THAT SELLER
               -----------------------------------------------------------------
               AGREES  TO  INDEMNIFY,  RELEASE  AND  HOLD BUYER HARMLESS FOR ANY
               -----------------------------------------------------------------
               DAMAGE  TO  THE FACILITIES AND/OR EQUIPMENT OF SELLER THAT OCCURS
               -----------------------------------------------------------------
               DURING  SUCH  INSPECTION SO LONG AS SUCH INSPECTION IS MADE UNDER
               -----------------------------------------------------------------
               THE SUPERVISION OF A SELLER'S EMPLOYEE OR AGENT PHYSICALLY AT THE
               -----------------------------------------------------------------
               LOCATION  WHEN  AND  WHERE  THE  DAMAGE  OCCURS;
               ------------------------------------------------

          (d)  if Closing  occurs,  the  use,  ownership,  or  operation  of the
               Assets  after  the  Effective  Time;

          (e)  if Closing  occurs,  the  Assumed  Liabilities.

     Except  for  Sellers' termination rights under Article 8 of this Agreement,
the remedies provided in this Article 7 (if Closing occurs) and Section 2.02 (if
Closing does not occur) are Seller's and Seller's Indemnified Persons' exclusive
remedies  for  Buyer's  Breaches.

     7.04.  TIME LIMITATIONS. Seller will have no liability (for indemnification
            ----------------
or  otherwise)  with  respect  to any representation or warranty, or covenant or
obligation  to  be performed and complied with prior to the Closing Date, unless
on  or  before  one  (1)  year from the Closing Date, Buyer notifies Seller of a
claim  specifying  the  factual  basis of that claim in reasonable detail to the
extent  then  known  by  Buyer.

                                       22
<PAGE>

     7.05.  LIMITATIONS  ON  AMOUNT--SELLER.  If the Closing occurs, Seller will
            -------------------------------
have  no liability under Section 7.02 until the total of all Damages indemnified
thereunder  exceeds  $100,000,  and  then  Seller  will be liable for the entire
amount  of  such  Damages.

     7.06.  LIMITATIONS ON AMOUNT--BUYER. If the Closing occurs, Buyer will have
            ----------------------------
no  liability  under  Section  7.03  until  the total of all Damages indemnified
thereunder exceeds $100,000, and then Buyer will be liable for the entire amount
of  such  Damages.

     7.07.  PROCEDURE  FOR  INDEMNIFICATION--THIRD  PARTY  CLAIMS.
            -----------------------------------------------------

          (a)  Promptly  after  receipt  by  an  indemnified party under Section
               7.02 or 7.03 of a claim for Damages or notice of the commencement
               of  any  Proceeding against it, such indemnified party will, if a
               claim  is  to  be  made  against an indemnifying party under such
               Section,  give  notice  to  the  indemnifying  party  of  the
               commencement  of  such  claim.

          (b)  If any  Proceeding  referred  to  in  Section  7.07(a) is brought
               against  an  indemnified  party  and  it  gives  notice  to  the
               indemnifying  party  of  the commencement of such Proceeding, the
               indemnifying  party  will  be  entitled  to  participate  in such
               Proceeding  and,  to  the  extent  that it wishes (unless (i) the
               indemnifying  party  is  also  a party to such Proceeding and the
               indemnified  party  determines  in  good  faith  that  joint
               representation  would  be inappropriate, or (ii) the indemnifying
               party  fails  to  provide reasonable assurance to the indemnified
               party  of  its  financial  capacity to defend such Proceeding and
               provide  indemnification  with  respect  to  such Proceeding), to
               assume  the  defense of such Proceeding with counsel satisfactory
               to  the indemnified party and, after notice from the indemnifying
               party  to  the  indemnified  party  of its election to assume the
               defense  of  such Proceeding, the indemnifying party will not, as
               long  as  it  diligently  conducts such defense, be liable to the
               indemnified  party  under  this  Article  7 for any fees of other
               counsel or any other expenses with respect to the defense of such
               Proceeding, in each case subsequently incurred by the indemnified
               party  in  connection with the defense of such Proceeding. If the
               indemnifying  party  assumes  the  defense  of  a  Proceeding, no
               compromise  or  settlement  of such claims may be effected by the
               indemnifying party without the indemnified party's consent unless
               (A)  there  is  no finding or admission of any violation of Legal
               Requirements  or any violation of the rights of any Person and no
               effect  on  any  other  claims  that  may  be  made  against  the
               indemnified  party,  and (B) the sole relief provided is monetary
               damages  that are paid in full by the indemnifying party; and (C)
               the  indemnified party will have no liability with respect to any
               compromise  or  settlement  of  such  claims effected without its
               consent.

                                       23
<PAGE>

          (c)  Notwithstanding  the  foregoing,  if  an  indemnified  party
               determines  in  good faith that there is a reasonable probability
               that a Proceeding may adversely affect it or its affiliates other
               than  as  a  result  of  monetary  damages  for which it would be
               entitled to indemnification under this Agreement, the indemnified
               party  may,  by  notice  to  the  indemnifying  party, assume the
               exclusive right to defend, compromise, or settle such Proceeding,
               but the indemnifying party will not be bound by any determination
               of  a  Proceeding  so  defended  or  any compromise or settlement
               effected  without  its  consent  (which  may  not be unreasonably
               withheld).

     7.08.  PROCEDURE  FOR  INDEMNIFICATION--OTHER  CLAIMS.  A  claim  for
            ----------------------------------------------
indemnification for any matter not involving a third-party claim may be asserted
by  notice  to  the  party  from  whom  indemnification  is  sought.

     7.09.  EXTENT  OF  REPRESENTATIONS  AND  WARRANTIES.
            --------------------------------------------

          (a)  EXCEPT  AS  AND  TO  THE  EXTENT  EXPRESSLY  SET  FORTH  IN  THIS
               -----------------------------------------------------------------
               AGREEMENT,  SELLER  MAKES  NO  REPRESENTATIONS  OR  WARRANTIES
               -----------------------------------------------------------------
               WHATSOEVER, AND DISCLAIM ALL LIABILITY AND RESPONSIBILITY FOR ANY
               -----------------------------------------------------------------
               REPRESENTATION,  WARRANTY,  STATEMENT  OR  INFORMATION  MADE  OR
               -----------------------------------------------------------------
               COMMUNICATED  (ORALLY  OR  IN  WRITING)  TO  BUYER (INCLUDING ANY
               -----------------------------------------------------------------
               OPINION,  INFORMATION  OR  ADVICE WHICH MAY HAVE BEEN PROVIDED TO
               -----------------------------------------------------------------
               BUYER  BY ANY AFFILIATE, OFFICER, DIRECTOR, STOCKHOLDER, PARTNER,
               -----------------------------------------------------------------
               EMPLOYEE, AGENT, CONSULTANT OR REPRESENTATIVE OF SELLER OR BY ANY
               -----------------------------------------------------------------
               INVESTMENT  BANK  OR  INVESTMENT  BANKING  FIRM,  ANY  PETROLEUM
               -----------------------------------------------------------------
               ENGINEER  OR  ENGINEERING  FIRM,  SELLER'S  COUNSEL  OR ANY OTHER
               -----------------------------------------------------------------
               AGENT,  CONSULTANT  OR  REPRESENTATIVE).  WITHOUT  LIMITING  THE
               -----------------------------------------------------------------
               GENERALITY  OF  THE  FOREGOING,  EXCEPT  AS  AND  TO  THE  EXTENT
               -----------------------------------------------------------------
               EXPRESSLY  SET FORTH IN THIS AGREEMENT, SELLER EXPRESSLY DISCLAIM
               -----------------------------------------------------------------
               AND  NEGATE  ANY REPRESENTATION OR WARRANTY, EXPRESS, IMPLIED, AT
               -----------------------------------------------------------------
               COMMON LAW, BY STATUTE, OR OTHERWISE RELATING TO (A) THE TITLE TO
               -----------------------------------------------------------------
               ANY  OF  THE ASSETS EXCEPT THAT SELLER EXPRESSLY WARRANT THAT THE
               -----------------------------------------------------------------
               SUBJECT  LEASES  ARE  FREE  AND  CLEAR  OF  ALL  LIENS,  SECURITY
               -----------------------------------------------------------------
               INTERESTS,  ENCUMBRANCES  OR  DEFECTS  IN TITLE, EXCEPT PERMITTED
               -----------------------------------------------------------------
               ENCUMBRANCES,  (B) THE CONDITION OF THE ASSETS (INCLUDING WITHOUT
               -----------------------------------------------------------------
               LIMITATION,  ANY  IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY,
               -----------------------------------------------------------------
               OF  FITNESS  FOR A PARTICULAR PURPOSE, OR OF CONFORMITY TO MODELS
               -----------------------------------------------------------------
               OR  SAMPLES  OF  MATERIALS),  IT  BEING DISTINCTLY UNDERSTOOD THE
               -----------------------------------------------------------------
               ASSETS ARE BEING SOLD "AS IS", "WHERE IS" AND "WITH ALL FAULTS AS
               -----------------------------------------------------------------
               TO  ALL MATTERS", (C) ANY INFRINGEMENT BY SELLER OF ANY PATENT OR
               -----------------------------------------------------------------
               PROPRIETARY RIGHT OF ANY THIRD PARTY (D) ANY INFORMATION, DATA OR
               -----------------------------------------------------------------

                                       24
<PAGE>

               OTHER  MATERIALS  (WRITTEN  OR  ORAL) FURNISHED TO BUYER BY OR ON
               -----------------------------------------------------------------
               BEHALF  OF  SELLER  (INCLUDING  WITHOUT LIMITATION, IN RESPECT OF
               -----------------------------------------------------------------
               GEOLOGICAL  AND ENGINEERING DATA, THE EXISTENCE OR EXTENT OF OIL,
               -----------------------------------------------------------------
               GAS OR THE MINERAL RESERVES, THE RECOVERABILITY OF SUCH RESERVES,
               -----------------------------------------------------------------
               ANY  PRODUCT  PRICING ASSUMPTIONS, AND THE ABILITY TO SELL OIL OR
               -----------------------------------------------------------------
               GAS  PRODUCTION  AFTER  CLOSING),  AND  (E)  THE  ENVIRONMENTAL
               -----------------------------------------------------------------
               CONDITION  AND  OTHER  CONDITION  OF THE ASSETS AND ANY POTENTIAL
               -----------------------------------------------------------------
               LIABILITY  ARISING  FROM  OR  RELATED  TO  THE  ASSETS.
               ------------------------------------------------------

          (b)  Buyer acknowledges  and  affirms  that  it  has  had  full access
               to  information  with  respect  to the Assets, and that Buyer has
               made  its  own independent investigation, analysis and evaluation
               of  the Contemplated Transactions (including Buyer's own estimate
               and  appraisal  of  the  extent and value of Seller's Hydrocarbon
               reserves attributable to the Assets and an independent assessment
               and  appraisal  of  the  environmental  risks associated with the
               acquisition of the Assets). Buyer hereby irrevocably covenants to
               refrain  from,  directly  or  indirectly, asserting any claim, or
               commencing,  instituting  or  causing  to  be  commenced,  any
               Proceeding  of  any  kind against a Seller, or Affiliate thereof,
               alleging  facts  contrary  to  the  foregoing acknowledgement and
               affirmation.

     7.10.  COMPLIANCE  WITH EXPRESS NEGLIGENCE TEST. THE PARTIES AGREE THAT THE
            --------------------------------------------------------------------
OBLIGATIONS OF THE INDEMNIFYING PARTY TO INDEMNIFY THE INDEMNIFIED PARTY WILL BE
--------------------------------------------------------------------------------
WITHOUT  REGARD  TO THE NEGLIGENCE OR STRICT LIABILITY OF THE INDEMNIFIED PARTY,
--------------------------------------------------------------------------------
WHETHER THE NEGLIGENCE OR STRICT LIABILITY IS ACTIVE, PASSIVE, JOINT, CONCURRENT
--------------------------------------------------------------------------------
OR  SOLE. The foregoing is a specifically bargained for allocation of risk among
--------
the  parties,  which  the  parties  agree  and acknowledge satisfies the express
negligence  rule  and  conspicuousness  requirement  under  Texas  law.

     7.11.  LIMITATIONS  OF  LIABILITY. In no event will Seller or Buyer ever be
            --------------------------
liable  to  the  other  for  any  consequential, special, indirect, exemplary or
punitive  damages relating to or arising out of the Contemplated Transactions or
the  Assets,  except  as  expressly  provided  in  this  Article.

                                    ARTICLE 8

                     TITLE MATTERS AND ENVIRONMENTAL MATTERS

     8.01.  TITLE  EXAMINATION AND ACCESS. Buyer may make or cause to be made at
            -----------------------------
its  expense  such  examination  as  it may desire of the title of Seller to the
Assets.  For  such purposes, Seller will (a) give to Buyer and to the employees,
consultants, independent contractors, attorneys and other advisers of Buyer full
access  at  any  reasonable  time  to  all  of  the  files,  records, contracts,
correspondence,  computer  output  and  data  files, maps, data, reports, plats,
abstracts  of  title, lease files, well files, unit files, division order files,
production marketing files, title opinions, title files and title records, title
insurance  policies,  ownership  maps,  surveys and any other information, data,

                                       25
<PAGE>

records  and files which Seller may have (or have access to) relating in any way
to  the  title  to  the  Assets,  the  past or present operation thereof and the
marketing of production therefrom; (b) furnish to Buyer all other information in
the possession of or available to Seller with respect to the title to the Assets
as Buyer may from time to time reasonably request, except to the extent that (i)
Seller  is prohibited therefrom by any agreement or contract to which they are a
party  or  of  which  they  are  a  beneficiary,  and  (ii)  the same constitute
interpretations  made  by Seller which they deem confidential or proprietary and
which  relate  to  other properties owned by Seller; and (c) authorize Buyer and
its  representatives  to  consult  with  attorneys, abstract companies and other
consultants  or  independent contractors of Seller, whether utilized in the past
or  presently,  concerning  title-related  matters  with  respect to the Assets.
Seller  will  advise  Buyer  of  any restrictions or constraints on the right of
Seller  to  provide  and  disclose  to  Buyer  all  data  and information herein
provided,  and  Buyer  will  have  the right and power to attempt to remove such
restrictions  and  constraints.

     8.02.  DEFENSIBLE  TITLE.  On  the Closing Date, each Seller will convey to
            -----------------
Buyer  Defensible  Title to such Seller's interest in the Assets. As used herein
the  term  "Defensible  Title"  will  mean,  as to such Seller's interest in the
Assets,  that  title  which:

     Entitles Seller, as to the Wells described on EXHIBIT A to receive not less
than  the  interests  set  forth  in such Exhibit as the respective "Net Revenue
                                                                     -----------
Interests",  of all Hydrocarbons produced, saved and marketed therefrom, through
---------
the plugging, abandonment and salvage of such Wells, except for any decrease (i)
caused by orders of the appropriate regulatory body having jurisdiction over the
Wells  that  are  promulgated  after  the  Effective  Time that concern pooling,
unitization,  communization  or  spacing  matters,  (ii)  caused  by  Buyer, its
successors  or  assigns;  or  (iii)  arising  from  operation  of  any  Contract
proportionately  assigned  to  Buyer  hereby.

     Obligates  Seller, as to the Wells described on EXHIBITS A to bear not more
than  the respective percentages designated as the "Working Interests" set forth
                                                    -----------------
in  such  Exhibits  of  the  costs  and  expenses  relating  to the maintenance,
development  and  operation of the said Wells, through the plugging, abandonment
and  salvage  of  such  Wells,  except for any increase (i) caused by Buyer, its
successors  and  assigns,  (ii)  that  also  results in the Net Revenue Interest
associated  with  the  Well  being proportionately increased, or (iii) caused by
orders  of  the appropriate regulatory agency having jurisdiction over the Wells
that are promulgated after the Effective Time that concern pooling, unitization,
communization  or  spacing  matters;

     Constitutes  all  of Seller's right, title and interest in and to leasehold
estate  and  working  interest  in  and  to  all  of  the  Assets;  and

     Is  free  and  clear of all Encumbrances except for Permitted Encumbrances.

     8.03.  TITLE DEFECTS. On or before five (5) days before Closing, Buyer will
            -------------
notify Seller in writing of any matter affecting the Assets which in the opinion
of  Buyer would not give Buyer Defensible Title, in accordance with Section 8.02
hereof,  and  the  Allocated  Value  of each such title defect (all of which are
herein called the "Title Defects"). Seller will thereupon have the right but not
                   -------------
the  obligation  to  attempt  to  cure  the Title Defects at their expense on or

                                       26
<PAGE>

before  the  Closing Date. If Seller elects not to cure the Title Defects or the
Title  Defects  cannot  be  cured  or removed to the satisfaction of Buyer on or
before  the  Closing  Date,  Buyer may elect in writing (a) to waive the uncured
Title  Defects  or  (b)  to eliminate that portion of the Assets affected by the
Title  Defects from the purchase and sale hereunder, in which event the Purchase
Price  specified  in  Section 2.02 will be reduced by the Allocated Value of the
portion thereof so excluded; provided, however, that the Purchase Price will not
be  adjusted  pursuant to this Section 8.03(b) until the aggregate amount of the
value  of  the Title Defects exceeds $10,000 and then to the full extent of such
value.  Any  Title  Defects which are not objected to by Buyer on or before five
(5)  days  before Closing will be deemed waived by the Buyer and to be Permitted
Encumbrances.

     8.04.  ADJUSTMENTS.  If  only a portion of any of the Assets is affected by
            -----------
Title  Defects, Buyer may elect to accept said Assets and pay a reduced Purchase
Price  based  upon  the  percentage loss of the affected Assets and the Purchase
Price  will  be  adjusted  by  deducting the value of such Title Defect from the
Allocated  Value  of  such  Asset.  If it is determined prior to Closing, by the
Seller  or  Buyer,  that  Seller's  net  revenue interest in any of the Wells is
greater  than represented herein, the Wells will be increased by a proportionate
adjustment  based  upon the Allocated Value of such Producing Properties, taking
into  account  the relative increase in the expense bearing working interest, if
any,  associated  with  the  increased  net  revenue  interest.

     8.05.  ENVIRONMENTAL  AUDIT.   Buyer  may,   at  its   option,   cause  an
            --------------------
environmental  audit  of the Assets to be conducted until five (5) days prior to
Closing  ("Examination  Period"). PROVIDED THAT, BUYER WILL REPAIR ANY DAMAGE TO
           -------------------
THE  PROPERTIES OF SELLERS RESULTING FROM ITS INSPECTION OF SUCH PROPERTIES, AND
BUYER  WILL  INDEMNIFY,  DEFEND  (INCLUDING REASONABLE ATTORNEYS' FEES) AND HOLD
SELLERS  HARMLESS  FROM  AND  AGAINST  ANY  AND  ALL  LOSSES,  COSTS,  DAMAGES,
OBLIGATIONS, CLAIMS, LIABILITIES, EXPENSES OR CAUSES OF ACTION (COLLECTIVELY THE
"CLAIMS") ARISING FROM SUCH INSPECTIONS, INCLUDING WITHOUT LIMITATION CLAIMS FOR
 ------
PERSONAL INJURY, DEATH, PROPERTY DAMAGE AND LIENS FOR SERVICES PROVIDED, IN EACH
INSTANCE,  EXCLUDING CLAIMS RESULTING FROM THE NEGLIGENCE OR STRICT LIABILITY OF
SELLERS  OR  THEIR RESPECTIVE OFFICERS, EMPLOYEES, AND AGENTS. Buyer will notify
Sellers  in writing (the "Environmental Notice") on or before 5:00 p.m. (Central
                          --------------------
Standard  Time)  not  later  than  the  end  of  the  Examination  Period of any
environmental  matters  disclosed  by  such audit or with respect to which Buyer
otherwise  has  knowledge,  that  Buyer  reasonably  believes  in good faith may
constitute  a  Violation  of  Environmental  Laws,  including with such notice a
reasonably  detailed  description  of  the  specific  matter  that is an alleged
Violation  of  Environmental  Laws.  Upon  receipt  of the Environmental Notice,
Seller  will  have  the  right,  but  not the obligation, to attempt to cure the
applicable  environmental  liabilities  attributable  to  the  Violations  of
Environmental  Laws  prior to Closing. Seller's consideration of, or election to
proceed  with,  any  of  the  remedies  hereunder  will  not  be deemed to be an
admission  by  any  Person  with  respect  to the occurrence of any Violation of
Environmental  Law  or  any  violation  of  any  other  Legal  Requirement.

                                       27
<PAGE>

     8.06. REMEDIES FOR VIOLATIONS OF ENVIRONMENTAL LAWS.  In the event that any
           ---------------------------------------------
Violation  of  Environmental  Law  is  not expressly waived by Buyer or cured by
Seller  on  or  before  the  Closing,  the  following  provisions  will  apply:

          (a)  If, in  Buyer's  reasonable  good  faith  estimate, the aggregate
               amount  to  cure all Violations of Environmental Law described in
               the  Environmental  Notice (collectively, the "Defect Amount") is
               $100,000  or  less,  Buyer  will proceed to Closing in accordance
               with  the  remaining  provisions  hereby  and  such Violations of
               Environmental  Law  will  be  deemed  waived.

          (b)  If, in  Buyer's  reasonable  good  faith  estimate,  the  Defect
               Amount  is  more than $100,000 but less than five percent (5%) of
               the  Purchase  Price,  Buyer will reduce the Purchase Price by an
               amount  equal to the cost to cure the Violations of Environmental
               Law  and  proceed  to  Closing.

          (c)  If, in  Buyer's  reasonable  good  faith  estimate,  the  Defect
               Amount is more than five percent (5%) of the Purchase Price, then
               either  Buyer  or  Seller  may elect to terminate this Agreement.

     8.07.  RIGHT  OF  TERMINATION.  If  the  adjustments  to the Purchase Price
            ----------------------
pursuant  to  Sections  8.03,  8.04  and  8.06  exceed  ten percent (10%) of the
Purchase  Price,  either party may terminate this Agreement by written notice to
the  other  prior to the Closing Date, in which case neither party will have any
liability  to  the  other  except  as  otherwise  set  forth  in this Agreement.

     8.08.  DISPUTES.  If  the  parties  are unable to agree as to (a) whether a
            --------
particular  matter constitutes a Title Defect or Violation of Environmental Law;
(b)  the portion of the Assets affected by the Title Defect or Defect Amount; or
(c)  the appropriate reduction in the Purchase Price to be made upon elimination
from  this transaction of the portion of the Assets affected by the Title Defect
or  Defect Amount; then in those events if Closing occurs the amount of Sellers'
estimate  of  the value of asserted Title Defects and Defect Amount will be used
to  adjust  the  Purchase  Price  in  accordance  with Article 2 for purposes of
Closing,  provided, that Sellers' estimate will be consistent with the Allocated
Values  set  forth on the Exhibits attached hereto. It is further provided that,
if  the  difference  between  Buyer's  and Sellers' estimates as to such amounts
exceeds  $100,000,  Sellers  may  elect  to terminate this Agreement. If Closing
occurs,  such  disagreement  will  be  resolved  after Closing by arbitration in
accordance  with  Section  9.14.  In  the  event the values of Title Defects and
Defect  Amount as estimated by Buyer are such that Buyer believes it is entitled
to  refuse  to close and Buyer elects to refuse to close, such disagreement will
be  resolved  by  arbitration  in  accordance  with  Section  9.14.

     8.09.  CASUALTY  LOSS  AND  CONDEMNATION.
            ---------------------------------

          (a)  If after  the  date  of  execution  of  this  Agreement and prior
               to  the  Closing  any  part of the Assets is destroyed by fire or
               other  casualty  or  if  any  part  of  the  Assets  is  taken in
               condemnation  or  under  the  right  of  eminent  domain  or  if

                                       28
<PAGE>

               proceedings  for  such  purposes  are pending or Threatened, this
               Agreement  will  remain  in full force and effect notwithstanding
               any  such  destruction,  taking,  proceeding,  or  threat.

          (b)  Except  to  the  extent  permitted  or  required pursuant to this
               Agreement, after the date of execution of this Agreement, without
               Buyer's prior consent, no insurance or condemnation proceeds will
               be  committed  or  applied by Seller prior to the Closing Date to
               repair,  restore,  or  replace  a damaged or taken portion of the
               Assets  if  the  cost to repair, restore, or replace a damaged or
               taken  portion  of  the Assets is projected to exceed $25,000. To
               the  extent  such proceeds are not committed or applied by Seller
               prior  to  the  Closing  Date  in  accordance  with  this Section
               8.07(b), Seller will at the Closing pay to Buyer all sums paid to
               Seller  by  reason  of  such  destruction  or  taking,  less  any
               reasonable  costs  and  expenses incurred by Seller in collecting
               such  proceeds.  In addition and to the extent such proceeds have
               not  been  committed or applied by Seller in accordance with this
               Section  8.07(b),  in  such  repair, restoration, or replacement,
               Seller  will  transfer  to  Buyer,  at  Closing, without recourse
               against  Seller,  all of the right, title, and interest of Seller
               in  and  to any unpaid insurance or condemnation proceeds arising
               out  of such destruction or taking, less any reasonable costs and
               expenses incurred by Seller in collecting such proceeds. Any such
               funds  which  have  been  committed  by  Seller  for  repair,
               restoration,  or  replacement as aforesaid will be paid by Seller
               for such purposes or, at Seller's option, delivered to Buyer upon
               Seller's  receipt  from Buyer of adequate assurance and indemnity
               that  Seller  will  incur  no liability or expense as a result of
               such  commitment.

          (c)  If and  to  the  extent  a  casualty  occurring after the date of
               execution  of this Agreement and before Closing is not covered by
               insurance, Buyer and Seller will attempt to agree on the value of
               the  uninsured casualty on or before the date five (5) days after
               Buyer receives written notice of the casualty. If the parties are
               not  able  to  agree  on such value within such 5-day period, the
               value  will  be  determined  by an independent casualty adjuster,
               experienced  in determining casualty losses in matters similar to
               the disputed casualty loss, who will be selected by Seller from a
               list  of  three  (3)  such independent casualty adjusters that is
               provided  to  Seller  by  the  Buyer.  Said  independent casualty
               adjuster  will  be selected by Seller within five (5) days of the
               written  receipt  by  Seller  of  Buyer's  written  listing  of
               independent  casualty  adjusters and will provide both Seller and
               Buyer  with  a  complete and documented report as to his findings
               within  ten  (10)  business  days  of  being  selected by Seller.

For  purposes of this Section, the value of the uninsured casualty will be equal
to  the lesser of (i) the aggregate reduction in Allocated Value of the affected
portion  of the Assets resulting from the uninsured casualty, or (ii) the amount
required  to  repair  the  affected  portion  of  the  Assets  to  its condition
immediately  preceding  the occurrence of the casualty.  The Purchase Price will
be  reduced  by the amount of the value of such an uninsured casualty as finally
determined  pursuant  to  this  Section,  and if such final determination is not
available  on  the  scheduled  Closing  Date,  Closing  will not be delayed, but
rather, such Purchase Price reduction will be a part of the final adjustments to
be  made  after  Closing  as  contemplated  by  Section  2.05.

     8.10.  SECURING  ASSIGNMENT  OF  WHEELER  ASSIGNMENT.  Buyer  and  Seller
             --------------------------------------------
acknowledge  that  Seller  has  earned  an interest in a forty acre tract in the
Wheeler  lease described in item 4 in Exhibit B from the farmors with respect to
that  property.  If  and to the extent that Seller has not secured an assignment
into  Seller  prior  to  Closing,  Seller  shall  nonetheless  diligently pursue
obtaining  such  an  assignment  and upon receipt of such interests shall assign
over  the  same to Buyer, subject to the terms and conditions of this Agreement.

                                    ARTICLE 9

                               GENERAL PROVISIONS

     9.01.  EXPENSES.  Except  as otherwise expressly provided in this Agreement
            --------
each  party  to  this  Agreement  will  bear its respective expenses incurred in
connection  with  the  preparation, execution, and performance of this Agreement
and  the  Contemplated  Transactions, including all fees and expenses of agents,
representatives,  counsel,  and  accountants.

     9.02.  NOTICES.  All  notices,  consents, waivers, and other communications
            -------
under  this  Agreement  must  be in writing and will be deemed to have been duly
given  when  (a)  delivered  by hand (with written confirmation of receipt), (b)
sent  by telecopier (with written confirmation of receipt), provided that a copy
is  mailed by registered mail, return receipt requested, or (c) when received by
the  addressee,  if  sent  by a nationally recognized overnight delivery service
(receipt  requested),  in  each case to the appropriate addresses and telecopier
numbers  set forth below (or to such other addresses and telecopier numbers as a
party  may  designate  by  notice  to  the  other  parties):

     Buyer:               Gulf  Coast  Oil  Corporation
                          5851  San  Felipe,  Suite  775
                          Houston,  Texas  77057

     with  a  copy  to:   W.  Mark  Cotham
                          Cotham,  Harwell  &  Evans,  P.C.
                          1616  S.  Voss,  Suite  200
                          Houston,  Texas  77057

     Seller:              Manti  Resources,  Inc.
                          Suite  900
                          800  North  Shoreline  Blvd.
                          Corpus  Christi,  Texas  78401

                                       29
<PAGE>

     9.03. JURISDICTION; SERVICE OF PROCESS. ANY ACTION OR PROCEEDING SEEKING TO
           --------------------------------  -----------------------------------
ENFORCE  ANY  PROVISION OF, OR BASED ON ANY RIGHT ARISING OUT OF, THIS AGREEMENT
--------------------------------------------------------------------------------
OR  THE  CONTEMPLATED TRANSACTIONS MUST BE BROUGHT AGAINST ANY OF THE PARTIES IN
--------------------------------------------------------------------------------
THE COURTS OF THE STATE OF TEXAS, COUNTY OF NUECES, OR, IF IT HAS OR CAN ACQUIRE
--------------------------------------------------------------------------------
JURISDICTION,  IN  THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF
--------------------------------------------------------------------------------
TEXAS  (CORPUS  CHRISTI  DIVISION),  AND  EACH  OF  THE  PARTIES CONSENTS TO THE
--------------------------------------------------------------------------------
JURISDICTION  OF  SUCH  COURTS  (AND OF THE APPROPRIATE APPELLATE COURTS) IN ANY
--------------------------------------------------------------------------------
SUCH  ACTION  OR  PROCEEDING  AND  WAIVES  ANY  OBJECTION TO VENUE LAID THEREIN.
--------------------------------------------------------------------------------
PROCESS IN ANY ACTION OR PROCEEDING REFERRED TO IN THE PRECEDING SENTENCE MAY BE
--------------------------------------------------------------------------------
SERVED  ON  ANY  PARTY  ANYWHERE  IN  THE  WORLD.
------------------------------------------------

     9.04.  FURTHER ASSURANCES. The parties agree (a) to furnish upon request to
            ------------------
each  other  such  further information, (b) to execute and deliver to each other
such other documents, and (c) to do such other acts and things, all as the other
party  may reasonably request for the purpose of carrying out the intent of this
Agreement  and  the  documents  referred  to  in  this  Agreement.

     9.05.  WAIVER. The rights and remedies of the parties to this Agreement are
            ------
cumulative  and  not alternative. Neither the failure nor any delay by any party
in  exercising  any  right,  power,  or  privilege  under  this Agreement or the
documents  referred to in this Agreement will operate as a waiver of such right,
power, or privilege, and no single or partial exercise of any such right, power,
or  privilege  will preclude any other or further exercise of such right, power,
or  privilege  or  the  exercise of any other right, power, or privilege. To the
maximum extent permitted by applicable law, (a) no claim or right arising out of
this  Agreement or the documents referred to in this Agreement can be discharged
by  one  party, in whole or in part, by a waiver or renunciation of the claim or
right  unless  in  writing  signed by the other party; (b) no waiver that may be
given by a party will be applicable except in the specific instance for which it
is  given;  and  (c)  no notice to or demand on one party will be deemed to be a
waiver  of any obligation of such party or of the right of the party giving such
notice  or demand to take further action without notice or demand as provided in
this  Agreement  or  the  documents  referred  to  in  this  Agreement.

     9.06.  ENTIRE  AGREEMENT  AND  MODIFICATION.  This Agreement supersedes all
            ------------------------------------
prior  agreements  between  the  parties  with respect to its subject matter and
constitutes  (along with the documents referred to in this Agreement) a complete
and  exclusive  statement of the terms of the agreement between the parties with
respect  to  its  subject  matter. This Agreement may not be amended except by a
written  agreement  executed  by  the party to be charged with the amendment. No
representation,  promise,  inducement  or statement of intention with respect to
the  subject  matter  of  this Agreement has been made by any party which is not
embodied in this Agreement together with the documents, instruments and writings
that are delivered pursuant hereto, and none of the parties shall be bound by or
liable  for  any  alleged  representation,  promise,  inducement or statement of
intention  not  so  set  forth.

                                       30
<PAGE>

     9.07.  ASSIGNMENTS,  SUCCESSORS,  AND  NO THIRD-PARTY RIGHTS. Any party may
            -----------------------------------------------------
assign  any of its rights under this Agreement provided that any such assignment
will  not  relieve  such  party  of  any of its obligations under this Agreement
without  the  prior  consent  of  any  other  party.  Subject  to  the preceding
sentences,  this  Agreement  will apply to, be binding in all respects upon, and
inure  to  the  benefit  of the successors and permitted assigns of the parties.
Nothing expressed or referred to in this Agreement will be construed to give any
Person  other  than  the  parties  to  this  Agreement  or  any  other agreement
contemplated  herein,  any  legal  or equitable right, remedy, or claim under or
with  respect  to  this  Agreement  or  any  provision  of  this Agreement. This
Agreement,  any  other  agreement  contemplated  herein,  and all provisions and
conditions  hereof  and  thereof  are  for the sole and exclusive benefit of the
parties  to  this  Agreement  and  such  other  agreements, and their respective
successors  and  assigns.

     9.08.  SEVERABILITY.  If any provision of this Agreement is held invalid or
            ------------
unenforceable  by  any  court of competent jurisdiction, the other provisions of
this  Agreement  will  remain  in  full  force and effect. Any provision of this
Agreement  held  invalid  or unenforceable only in part or degree will remain in
full  force  and  effect  to  the  extent  not  held  invalid  or unenforceable.

     9.09.  SECTION  HEADINGS,  CONSTRUCTION.  The  headings of Sections in this
            --------------------------------
Agreement are provided for convenience only and will not affect its construction
or  interpretation.  All  references  to  "Section"  or  "Sections" refer to the
corresponding  Section  or  Sections  of  this Agreement. All words used in this
Agreement  will be construed to be of such gender or number as the circumstances
require.  Unless  otherwise  expressly  provided,  the word "including" does not
limit  the  preceding  words  or  terms.

     9.10.  TIME OF ESSENCE. With regard to all dates and time periods set forth
            ---------------
or  referred  to  in  this  Agreement,  time  is  of  the  essence.

     9.11.  GOVERNING  LAW.  This  Agreement and the relationship of the parties
            --------------
with respect to the Contemplated Transaction will be governed by the laws of the
State  of  Texas  without  regard  to  conflicts  of  laws  principles.

     9.12.  COUNTERPARTS.  This  Agreement  may  be  executed  in  one  or  more
            ------------
counterparts,  each  of  which  will  be  deemed  to be an original copy of this
Agreement  and  all  of which, when taken together, will be deemed to constitute
one  and  the  same  agreement.

     9.13.  WAIVER OF TEXAS DECEPTIVE TRADE PRACTICES - CONSUMER PROTECTION ACT.
            -------------------------------------------------------------------
Buyer's rights and remedies with respect to this transaction and with respect to
all  acts  or  practices of Seller, past, present, or future, in connection with
this  transaction  will  be  governed  by  legal principles other than the Texas
Deceptive  Trade  Practices  - Consumer Protection Act, V.C.T.A. BUS & COMM Ann.
Sec. 17.41 et seq. (the "DTPA"), or any similar statute of any jurisdiction that
may  be  applicable  to  the  transactions  contemplated  hereby.  Buyer  hereby
unconditionally waives the applicability of the DTPA, or any similar statute, to
this  transaction  and  any  and  all  rights, duties, or remedies that might be
imposed  by  the DTPA, or any similar statute, provided, however, Buyer does not
waive  Section  17.555 of the DTPA. Buyer represents, warrants, and acknowledges

                                       31
<PAGE>

that  it  is purchasing the Assets for commercial or business use. Buyer further
acknowledges,  represents,  and warrants that Buyer has knowledge and experience
in financial and business matters that enables it to evaluate the merits and the
risks  of  a  transaction  such as this and that Buyer is not in a significantly
disparate  bargaining  position  with  Seller.  Buyer expressly acknowledges and
recognizes  that  the  price  for which Seller has agreed to sell the Assets and
perform  its  obligations  under the terms of this Agreement has been predicated
upon the inapplicability of the DTPA, or any similar statute, and this waiver of
the  DTPA,  and any similar statute, by the Buyer. Buyer further recognizes that
Seller,  in  determining  To  proceed  with  entering  into  this Agreement, has
expressly  relied  on  the  provisions  of  this  Section  9.13.

     9.14.  ARBITRATION.  All  disputes, controversies, or claims that may arise
            -----------
among  the  parties  relating  to  this  Agreement  will  be  submitted  to, and
determined  by,  binding arbitration. The arbitration will be conducted before a
single arbitrator pursuant to the Commercial Arbitration Rules then in effect of
the  American Arbitration Association. The arbitrator will apply the laws of the
State  of  Texas  (without  regard  to  conflict  of  law rules) to the dispute,
controversy, or claim. Evidentiary questions will be governed by the Texas Rules
of  Evidence.  The  arbitrator's  award  will  be in writing and shall set forth
findings  and  conclusions  upon  which  the  arbitrator  based  the  award. The
prevailing  party  in the arbitration will be entitled to recover its reasonable
attorneys'  fees,  costs,  and  expenses  incurred  in  connection  with  the
arbitration,  as  determined  by  the  arbitrator.  Any  award  pursuant  to the
arbitration will be final and binding upon the parties and judgment on the award
may be entered in any federal or state court having jurisdiction. The provisions
of  this Section will survive the termination of this Agreement. Notwithstanding
the  foregoing,  this Section will not prevent any party from seeking injunctive
relief  from  a court of competent jurisdiction under appropriate circumstances,
provided, however, such action will not constitute a waiver of the provisions of
this  Section.

     9.15.  TAX  DEFERRED  EXCHANGE.  If  Seller  so  requests,  Buyer agrees to
            -----------------------
cooperate  with  Seller  in a tax-deferred exchange described in Section 1031 of
the  Internal  Revenue  Code of 1986, as amended. Notwithstanding the foregoing,
Buyer  shall  not  be  obligated to enter into any agreement or to consent to an
assignment of Seller's rights or obligations hereunder which may have the effect
of (i) impairing the title to the Assets, (ii) increasing Buyer's obligations or
liability hereunder or resulting in any additional cost, expense or liability to
Buyer; or (iii) requiring Buyer to execute a purchase agreement for the purchase
of  the  exchange  property  or  to  take record title to the exchange property.
Seller  hereby  agrees  to  indemnify,  defend  and hold Buyer harmless from and
against  any  and  all  costs,  expenses, claims, damages, losses or liabilities
(including,  without limitation, reasonable attorney fees and costs) incurred by
Buyer  in  connection  with  any  exchange  transaction  or  transactions or the
performance  by  Buyer  of  its  obligations  pursuant  to  this  Section.

     9.16.  PRESS  RELEASE. Except as may be required by applicable law, neither
            --------------
Buyer  nor Seller will issue at or prior to Closing any publicity or other press
release  without  the prior written consent of the other party. After Closing of

                                       32
<PAGE>

the  Contemplated  Transactions,  it is agreed that Buyer will issue any and all
such  releases, and Seller will not do so without Buyer's prior written consent.

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

                                        SELLER:
                                        ------

                                        MANTI  RESOURCES,  INC.

                                        BY: /s/ Lee Barberito
                                           ----------------------------
                                        NAME: Lee Barberito
                                             --------------------------
                                        TITLE: Vice President
                                              -------------------------

                                        MANTI  OPERATING  COMPANY

                                        BY: /s/ Lee Barberito
                                           ----------------------------
                                        NAME: Lee Barberito
                                             --------------------------
                                        TITLE: Vice President
                                              -------------------------

                                        MANTI  MUSTANG  CREEK,  LTD.

                                        BY: /s/ Lee Barberito
                                           ----------------------------
                                        NAME: Lee Barberito
                                             --------------------------
                                        TITLE: Vice President
                                              -------------------------

                                        BUYER:
                                        -----

                                        GULF  COAST  OIL  CORPORATION

                                        BY: /s/ Edward R. DeStefano
                                           ----------------------------
                                        NAME: Edward R. DeStefano
                                             --------------------------
                                        TITLE: President
                                              -------------------------

                                       33
<PAGE>

                                    EXHIBIT A

                                SCHEDULE OF WELLS

<TABLE>
<CAPTION>

Well Name                        API       Operator    Before Payout    Before Payout      After Payout     After Payout
                                                         Working         Net Revenue          Working        Net Revenue
                                                         Interest          Interest           Interest         Interest
<S>                              <C>          <C>          <C>               <C>                <C>               <C>

Hodde #1                    42-311-33809     Manti     0.93750000        0.72187500         0.87500000       0.67375000
Double K #2                 42-311-33828     Manti     0.93750000        0.72187500         0.87500000       0.67375000
Double K #3                 42-311-33811     Manti     0.93750000        0.72187500         0.87500000       0.67375000
Kassner #1                  42-311-33818     Manti     0.93750000        0.72187500         0.87500000       0.67375000
Kassner #2                  42-311-33833     Manti     0.93750000        0.72187500         0.87500000       0.67375000
Tyler Ranch Unit Well #1    42-311-33826     Manti     0.93750000        0.72539062         0.87500000       0.67703125
Peacock #1                  42-311-33831     Manti     0.93750000        0.72187500         0.87500000       0.67375000
Powers-Swaim Unit Well #1   42-311-33846     Manti     0.93750000        0.72187500         0.87500000       0.67375000
Swaim 58-1                  42-311-33863     Manti     0.93750000        0.72187500         0.87500000       0.67375000
Wheeler #1                  42-311-33882     Manti     0.70312500        0.41015620         0.65625000       0.38281250
Rabke/Maspero Unit #1       42-311-33893     Manti     0.93750000        0.72539062         0.87500000       0.67703125
Cajun Caper Unit #1         42-311-33872     Manti     0.93750000        0.70797330         0.87500000       0.66077508

</TABLE>

<PAGE>

                              EXHIBIT A (CONTINUED)

                      SCHEDULE OF LEASES AND RIGHTS OF WAY

1.   Oil, Gas  and Mineral Lease dated March 23, 2005, by and between Rene Roark
     Bowditch,  et  al,  as  Lessor  and  Manti  Mustang  Creek, Ltd. as Lessee,
     covering  700  acres,  more  or  less,  situated  in the B. S. & F. Survey,
     Section  61,  A-150,  the  J.  B. Taylor Survey, Section 68, A-637, and the
     B.S.F.  Survey,  Section  59,  A-149 in McMullen County, Texas, recorded by
     Memorandum  Giving Notice of Oil and Gas Lease dated March 23, 2005, by and
     between  Lessor and Lessee, in Volume 435, Page 440, of the Deed Records of
     McMullen  County,  Texas;  ratified  by  Ratification of Oil and Gas Leases
     dated April 20, 2005, by and between James F. Roark, Jr., and Manti Mustang
     Creek,  Ltd.,  recorded  in  Volume  436,  Page  56  of the Deed Records of
     McMullen  County,  Texas.

2.   Oil, Gas  and  Mineral  Lease dated March 16, 2005, by and between Double K
     Property,  Ltd.,  as  Lessor,  and  Manti  Mustang  Creek, Ltd., as Lessee,
     covering  700  acres,  more  or  less,  situated  in the B. S. & F. Survey,
     Section  61,  A-150,  the  J.  B. Taylor Survey, Section 68, A-637, and the
     B.S.F.  Survey,  Section  59,  A-149 in McMullen County, Texas, recorded by
     Memorandum  Giving Notice of Oil and Gas Lease dated March 16, 2005, by and
     between  Lessor and Lessee, in Volume 435, Page 437, of the Deed Records of
     McMullen  County,  Texas;  ratified  by  Ratification of Oil and Gas Leases
     dated April 20, 2005, by and between James F. Roark, Jr., and Manti Mustang
     Creek,  Ltd.,  recorded  in  Volume  436,  Page  56  of the Deed Records of
     McMullen  County,  Texas.

3.   Oil, Gas  and  Mineral Lease dated February 28, 2005, by and between Four K
     General  Partnership,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  267  acres,  more or less, situated in the George Elliott Survey,
     Section 959, A-181, in McMullen County, Texas recorded by Memorandum Giving
     Notice  of Oil and Gas Lease dated February 28, 2005, by and between Lessor
     and  Lessee,  in  Volume  435,  Page  321,  of the Deed Records of McMullen
     County, Texas; ratified by Ratification of Oil, Gas and Mineral Lease dated
     June  21,  2005,  by  and  between  Alvin Kassner, et al, and Manti Mustang
     Creek,  Ltd.,  recorded  in  Volume  436,  Page  461 of the Deed Records of
     McMullen  County, Texas; amended by Amendment of Oil, Gas and Mineral Lease
     dated  effective  February  28,  2005,  by  and  between Lessor and Lessee,
     increasing  the acreage amount 282 acres, recorded in Volume 437, Page 460,
     of  the  Deed  Records  of  McMullen  County,  Texas.

4.   Oil, Gas  and  Mineral  Lease  dated  July 19, 2005, by and between Domingo
     Garza Jr., et al, as Lessor and Manti Mustang Creek, as Lessee, covering 83
     acres, more or less, situated in the C. Manchaca Survey, No. 960, A-304, in
     McMullen  County, Texas and recorded by Memorandum Giving Notice of Oil and

<PAGE>

     Gas  Lease  dated July 19, 2005, by and between Lessor and Lessee in Volume
     438,  Page  70  of  the  Deed  Records  of  McMullen  County,  Texas.

5.   Oil and  Gas Lease dated March 18, 2005, by and between Susan R. Glover, et
     al, as Lessor and Manti Mustang Creek, Ltd., as Lessee, covering 320 acres,
     more  or  less,  situated  in the W. H. Stout Survey, Section 20, A-1179 in
     Atascosa  County,  Texas and the J. Poitevent Survey, Section 19, A-1021 in
     McMullen  County,  Texas,  A-971  in  Atascosa  County,  Texas, recorded in
     Memorandum  Giving Notice of Oil and Gas Lease dated March 18, 2005, by and
     between  Lessor  and  Lessee in Volume 435, Page 317 of the Deed Records of
     McMullen  County,  Texas  and  Book  307,  Page  694 of the Official Public
     Records  of  Atascosa  County,  Texas;  amended by Amendment to Oil and Gas
     Lease, dated March 6, 2006, correcting the land description, by and between
     Lessor  and  Lessee recorded in Volume 443, Page 147 of the Deed Records of
     McMullen  County,  Texas,  and  Document  No.  80615 of the Official Public
     Records  of  Atascosa  County,  Texas.

6.   Oil, Gas  and  Mineral  Lease  dated  May  13,  2005, by and between Gloria
     Barbara McCarrick Gouger, et al, as Lessor and Manti Mustang Creek, Ltd. as
     Lessee,  covering  643 acres, more or less, situated in the J. G. & O. Fish
     Survey  No.  1073,  A-200  and  the B.B.B. & C. R. R. Survey 1095, A-80, in
     McMullen  County, Texas recorded by Memorandum Giving Notice of Oil and Gas
     Lease  dated  May 13, 2005, by and between Lessor and Lessee in Volume 436,
     Page  398,  of  the  Deed  Records  of  McMullen  County,  Texas.

7.   Oil and  Gas  Lease  dated April 29, 2005 by and between John L. Hardin, as
     Lessor,  and  Manti  Mustang Creek, Ltd., as Lessee, covering 171.42 acres,
     more  or  less,  in  McMullen  County, Texas, recorded by Memorandum Giving
     Notice  of  Oil and Gas Lease dated April 29, 2005, in Volume 436, Page 59,
     of  the  Deed  Records  of  McMullen  County,  Texas.

8.   Oil and  Gas  Lease  dated July 19, 2005, by and between Virginia Henry, as
     Lessor,  and Manti Mustang Creek, Ltd., as Lessee, covering 147 acres, more
     or  less,  situated  in  the  George  Elliott  Survey 959, A-181 and the C.
     Menchaca  Survey  906,  A-304,  in  McMullen  County,  Texas  recorded  by
     Memorandum Giving Notice of Oil and Gas Lease dated August 11, 2005, by and
     between  Lessor  and Lessee, in Volume 438, Page 164 of the Deed Records of
     McMullen  County,  Texas.

9.   Oil, Gas  and  Mineral  Lease  dated February 1, 2005, by and between A. W.
     Hodde,  Jr.,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering
     572.40  acres,  more or less, situated in the G.C. & S.F. RR Co. Survey No.
     505,  the  F.  H. Burmeister Survey No. 4, and the G. H. & H. RR Co. Survey
     No.  3,  A-219,  in  McMullen  County, Texas, recorded by Memorandum Giving
     Notice  of  Oil and Gas Lease dated February 1, 2005, by and between Lessor
     and Lessee, in Volume 435, Page 331 of the Deed Records of McMullen County,
     Texas.

<PAGE>

10.  Oil, Gas  and  Mineral Lease dated February 1, 2005, by and between William
     R.  Meuth,  et  ux,  as  Lessor,  and Manti Mustang Creek, Ltd., as Lessee,
     covering  572.40  acres, more or less, situated in the G. C. & S. F. RR Co.
     Survey No. 505, the F. H. Burmeister Survey No. 4 and the G. H. & H. RR Co.
     Survey  No.  3,  A-219,  in  McMullen County, Texas, recorded by Memorandum
     Giving  Notice  of Oil and Gas Lease dated February 1, 2005, by and between
     Lessor  and Lessee, recorded in Volume 435, Page 334 of the Deed Records of
     McMullen  County,  Texas.

11.  Oil and  Gas  Lease  dated  March  15,  2005,  by  and  between Gayle Crain
     Kuykendall,  et  al,  as  Lessor  and Manti Mustang Creek, Ltd., as Lessor,
     covering  183  acres,  more  or  less, situated in the Thomas Corry Survey,
     Section  834,  A-172,  in McMullen County, Texas, recorded by Memorandum of
     Oil and Gas Lease dated March 15, 2005, by and between Lessor and Lessee in
     Volume  435,  Page  324  of  the  Deed  Records  of McMullen County, Texas.

12.  Oil, Gas  and  Mineral  Lease  dated  June  7,  2005,  by  and  between MFB
     Partnership,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering
     640  acres,  more  or less, situated in the Maddox Bros. & Anderson Survey,
     Section  2, A-697, in McMullen County, Texas, recorded by Memorandum of Oil
     and Gas Lease dated June 7, 2005 by and between Lessor and Lessee in Volume
     436,  Page  471  of  the  Deed  Records  of  McMullen  County,  Texas.

13.  Oil, Gas and Mineral Lease dated May 16, 2005, by and between John Mahoney,
     et  al,  as  Lessor  and Manti Mustang Creek, Ltd., as Lessee, covering 320
     acres,  more or less, situated in the J. M. Hernandez Survey No. 34, A-225,
     in  McMullen County, Texas, recorded by Memorandum Giving Notice of Oil and
     Gas  Lease  dated  May 16, 2005, by and between Lessor and Lessee in Volume
     436,  Page  265  of  the  Deed  Records  of  McMullen  County,  Texas.

14.  Oil, Gas  and  Mineral  Lease  dated  April  8, 2005, by and between Guy P.
     Peacock,  as  Lessor and Manti Mustang Creek, Ltd., as Lessee, covering 374
     acres,  more  or less, situated in the Gabriel Vallagram Survey, Section 8,
     A-485,  in  McMullen County, Texas, recorded by Memorandum Giving Notice of
     Oil and Gas Lease dated April 19, 2005, by and between Lessor and Lessee in
     Volume  436,  Page  62  of  the  Deed  Records  of  McMullen County, Texas.

15.  Oil and  Gas Lease dated April 8, 2005, by and between Lester Powers Ranch,
     Inc.,  as  Lessor,  and  Manti Mustang Creek, Ltd., as Lessee, covering 300
     acres,  more or less, situated in the B. S. & F. Survey, Section 65, A-152,
     J.  B.  Taylor  Survey,  Section 68, A-637 and the Chas. S. Burbank Survey,
     Section  10, A-61, in McMullen County, Texas, recorded by Memorandum Giving
     Notice  of Oil and Gas Lease dated April 8, 2005, by and between Lessor and
     Lessee,  recorded  in Volume 435, Page 472, of the Deed Records of McMullen

<PAGE>

     county,  Texas,  corrected by Corrected Memorandum Giving Notice of Oil and
     Gas  Lease dated April 8, 2005, by and between Lessor and Lessee, in Volume
     438,  Page  346  of  the  Deed  Records  of  McMullen  County,  Texas.

16.  Oil, Gas  and  Mineral  Lease dated March 12, 2005, by and between Henry B.
     Rabke,  M.D., as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering
     200  acres,  more or less, situated in the J. G. & O. Fish Survey No. 1073,
     A-200  and  the  B.B.B.  &  C. R. R. Survey 1095, A-80, in McMullen County,
     Texas,  recorded  by  Memorandum  Giving  Notice of Oil and Gas Lease dated
     March  12,  2005, by and between Lessor and Lessee, in Volume 435, Page 328
     of  the  Deed  Records  of  McMullen  County, Texas, corrected by Corrected
     Memorandum  Giving Notice of Oil and Gas Lease dated March 12, 2005, by and
     between  Lessor  and  Lessee, recorded in Volume 436, Page 253, of the Deed
     Records  of  McMullen County, Texas; said lease ratified by Ratification of
     Oil  and Gas Lease dated effective March 12, 2005, by and between Billie H.
     Rabke  and  Manti  Mustang Creek, Ltd., recorded in Volume 436, Page 256 of
     the  Deed  Records  of  McMullen  County,  Texas.

17.  Oil, Gas  and  Mineral Lease dated June 15, 2005, by and between Bernadette
     Maspero  Schultz,  et  al,  as  Lessor,  and  Manti Mustang Creek, Ltd., as
     Lessee,  covering  80  acres,  more or less, situated in the B.B.B. & C. RR
     Survey  No.  1,  Abstract  81,  in  McMullen  County,  Texas,  recorded  by
     Memorandum  Giving  Notice of Oil and Gas Lease dated June 20, 2005, by and
     between  Lessor  and Lessee, in Volume 436, Page 466 of the Deed Records of
     McMullen County, Texas; ratified by Ratification of Oil and Gas Lease dated
     effective June 15, 2005, executed October 5, 2005, by and between Victor E.
     Maspero  and  Manti Mustang Creek, Ltd., recorded in Volume 439, Page 49 of
     the  Deed  Records  of  McMullen  County,  Texas.

18.  Oil, Gas  and  Mineral  Lease  dated  June  15,  2005,  by and between Leon
     Franklin  Steinle,  et  al,  as  Lessor,  and Manti Mustang Creek, Ltd., as
     Lessee,  covering  403 acres, more or less, situated in the J. M. Hernandez
     Survey,  No.  33,  A-224  and  the  McKinney & Williams Survey, Section 16,
     A-339,  in  McMullen  County,  Texas, recorded by Memorandum of Oil and Gas
     Lease dated June 15, 2005, by and between Lessor and Lessee, in Volume 437,
     Page  07,  of  the  Deed  Records  of  McMullen  County,  Texas.

19.  Oil, Gas and Mineral Lease dated June 9, 2005, by and between Robert Murray
     Swaim,  et al, as Lessor and Manti Mustang Creek, Ltd., as Lessee, covering
     403  acres,  more  or less, situated in the J. M. Hernandez Survey, No. 33,
     A-224  and  the  McKinney & Williams Survey, Section 16, A-339, in McMullen
     County,  Texas,  recorded  by Memorandum Giving Notice of Oil and Gas Lease
     dated  June  9, 2005, by and between Lessor and Lessee, in Volume 436, Page
     387  of  the  Deed  Records  of  McMullen  County,  Texas.

20.  Oil and  Gas  Lease dated August 31, 2005, by and between Michael Swaim, et
     ux,  as  Lessor,  and  Manti  Mustang  Creek, Ltd., as Lessee, covering 217
     acres,  more or less, situated in the J. M. Hernandez Survey, No. 33, A-224
     and  the McKinney & Williams Survey, Section 16, A-339, in McMullen County,
     Texas, recorded by Memorandum Giving Notice of Existance of Oil & Gas Lease
     dated  August  31,  2005,  by and between Lessor and Lessee, in Volume 438,
     Page  262,  of  the  Deed  Records  of  McMullen  County,  Texas.

21.  Oil and  Gas  Lease dated August 31, 2005, by and between Michael Swaim, et
     ux,  as  Lessor,  and  Manti  Mustang  Creek, Ltd., as Lessee, covering 186
     acres, more or less, situated in the J. M. Hernandez Survey, No. 33, A-224,
     in  McMullen  County,  Texas,  recorded  by  Memorandum  Giving  Notice  of

<PAGE>

     Existance  of  Oil & Gas Lease dated August 31, 2005, by and between Lessor
     and  Lessee,  in  Volume  438,  Page  265,  of the Deed Records of McMullen
     County,  Texas.

22.  Oil and Gas Lease dated July 20, 2005, by and between Michael Swaim, et ux,
     as  Lessor,  and  Manti Mustang Creek, Ltd., as Lessee, covering 144 acres,
     more  or  less,  situated in the J. B. Taylor Survey, Section 58, A-636 and
     the  J.  B.  Taylor  Survey,  Section 60, A-633, in McMullen County, Texas,
     recorded  by Memorandum Giving Notice of Existance of Oil & Gas Lease dated
     July  20,  2005, by and between Lessor and Lessee, in Volume 437, Page 464,
     of  the  Deed  Records  of  McMullen  County,  Texas.

23.  Oil and  Gas  Lease dated August 11, 2005 by and between James L. Rayes, et
     al,  as  Lessor,  and  Manti  Mustang  Creek, Ltd., as Lessee, covering 450
     acres,  more  or  less,  situated  in  McMullen  County, Texas, recorded by
     Memorandum  Giving  Notice of Oil & Gas Lease dated August 11, 2005, by and
     between  Lessor  and Lessee, in Volume 438 Page 168, of the Deed Records of
     McMullen  County,  Texas, and Document No. 75905 of the Official Records of
     Atascosa  County, Texas; said lease ratified by Ratification of Oil and Gas
     Lease,  dated  effective  August  11,  2005,  by  Patrick O. Rayes, General
     Partner  of  The  Patrick  O.  Rayes  Family Partnership, Ltd., recorded in
     Volume  439,  Page  30  of  the Deed Records of McMullen County, Texas, and
     Document  No.  77067  of  the  Official  Records of Atascosa County, Texas.

24.  Oil and  Gas Lease dated March 18, 2005 by and between Patrick O. Rayes, et
     al,  as  Lessor,  and  Manti  Mustang  Creek, Ltd., as Lessee, covering 320
     acres,  more  or  less,  situated  in  the J. T. Cresap Survey, Section 10,
     A-1554,  in  Atascosa  County,  Texas and A-1199 in McMullen County, Texas,
     recorded  by  Memorandum  Giving  Notice of Oil & Gas Lease dated March 18,
     2005, by and between Lessor and Lessee in Volume 435, Page 313, of the Deed
     Records  of  McMullen  County, Texas and Book 307, Page 699 of the Official
     Public  Records  of  Atascosa  County,  Texas;  said  lease  ratified  by
     Ratification  of  Oil  and Gas Lease dated effective March 18, 2005, by and
     between  Lynn Krause Dowdy and husband Preston Dowdy and Myra Krause Waters
     and  husband  George  C.  Waters and Manti Mustang Creek, Ltd., recorded in
     Volume  443,  Page  394  of the Deed Records of McMullen County, Texas, and
     Document  No.  81135,  of  the  Official Records of Atascosa County, Texas.

25.  Oil, Gas  and  Mineral  Lease  dated May 20, 2005, by and between Rodney W.
     Swaim,  Jr.,  et  al,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee,

<PAGE>

     covering  102  acres,  more  or  less, situated in the J. B. Taylor Survey,
     Section 58, A-636, in McMullen County, Texas, recorded by Memorandum Giving
     Notice  of  Oil and Gas Lease dated May 20, 2005, by and between Lessor and
     Lessee,  in  Volume  436, Page 343, of the Deed Records of McMullen County,
     Texas.

26.  Oil, Gas  and  Mineral  Lease  dated  May  20,  2005, by and between Wesley
     Franklin Swaim, et ux, as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  70  acres,  more  or  less,  situated in the J. B. Taylor Survey,
     Section 60, A-633, in McMullen County, Texas, recorded by Memorandum Giving
     Notice  of  Oil and Gas Lease dated May 20, 2005, by and between Lessor and
     Lessee,  in  Volume  436, Page 395, of the Deed Records of McMullen County,
     Texas.

27.  Oil, Gas and Mineral Lease dated May 20, 2005, by and between Robert Murray
     Swaim, et al, as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering
     144  acres,  more or less, situated in the J. B. Taylor Survey, Section 58,
     A-636  and  the J. B. Taylor Survey, Section 60, A-633, in McMullen County,
     Texas,  recorded by Memorandum Giving Notice of Oil and Gas Lease dated May
     20, 2005, by and between Lessor and Lessee, in Volume 436, Page 363, of the
     Deed  Records  of  McMullen  County,  Texas.

28.  Oil, Gas  and Mineral Lease dated July 26, 2005, by and between G. Franklin
     Swaim, et al, as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering
     222  acres,  more  or less, situated in the B. S. & Forwood Survey, No. 57,
     A-148,  in  McMullen County, Texas, recorded by Memorandum Giving Notice of
     Oil and Gas Lease dated July 26, 2005, by and between Lessor and Lessee, in
     Volume  438,  Page  76,  of  the  Deed  Records  of McMullen County, Texas;
     ratified  by  Ratification  of  Oil  and Gas Lease dated effective July 16,
     2005, by and between Wesley Franklin Swaim, et ux, and Manti Mustang Creek,
     Ltd.,  recorded  in  Volume  438,  Page 228 of the Deed Records of McMullen
     County,  Texas,  and Ratification of Oil and Gas Lease dated effective July
     16,  2005,  by  and between Robert Murray Swaim, Sallie Swaim, Arthur Wayne
     Swaim  and Sherrill Swaim and Manti Mustang Creek, Ltd., recorded in Volume
     438,  Page  225  of  the  Deed  Records  of  McMullen  County,  Texas.

29.  Oil Gas  and  Mineral  Lease  dated  May  20, 2005 by and between Rodney W.
     Swaim,  Jr.,  et  al,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  208  acres, more or less, situated in B. S. & F. Survey 65, A-152
     and the B. S. & F. Survey 67, A-153, in McMullen County, Texas, recorded by
     Memorandum  Giving  Notice  of Oil and Gas Lease dated May 20, 2005, by and
     between  Lessor  and Lessee, in Volume 436, Page 334 of the Deed Records of
     McMullen  County,  Texas.

30.  Oil, Gas  and  Mineral  Lease  dated  May  20,  2005, by and between Wesley
     Franklin Swaim, et ux, as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  312  acres,  more  or  less,  situated  in the B. S. & F. Survey,
     Section 65, A-152, in McMullen County, Texas, recorded by Memorandum Giving

<PAGE>

     Notice  of  Oil and Gas Lease dated May 20, 2005, by and between Lessor and
     Lessee,  in  Volume  436, Page 392, of the Deed Records of McMullen County,
     Texas.

31.  Oil and Gas Lease dated July 26, 2005, by and between Rodney W. Swaim, Jr.,
     et  al,  as  Lessor,  and Manti Mustang Creek, Ltd., as Lessee, covering 60
     acres,  more  or  less,  situated  in  McMullen  County, Texas, recorded by
     Memorandum  Giving  Notice of Oil and Gas Lease dated July 26, 2005, by and
     between  Lessor  and Lessee, in Volume 438, Page 86, of the Deed Records of
     McMullen  County,  Texas,  that  has been corrected by Corrected Memorandum
     Giving  Notice of Oil and Gas Lease, dated November 9, 2005, by and between
     Lessor  and Lessee, recorded in Volume 441, Page 166 of the Deed Records of
     McMullen  County,  Texas.

32.  Oil and  Gas  Lease dated July 26, 2005, by and between Wesley F. Swain, et
     ux, as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering 50 acres,
     more or less, situated in McMullen County, Texas, recorded by Memorandum of
     Giving  Notice  of  Oil  and  Gas Lease dated July 26, 2005, by and between
     Lessor and Lessee, in Volume 438, Page 349, of the Deed Records of McMullen
     County,  Texas.

33.  Oil and  Gas  Lease  dated  March  30,  2005,  by  and  between Tyler Ranch
     Partners,  Ltd.,  as  Lessor  and  Manti  Mustang  Creek,  Ltd., as Lessee,
     covering 390.81 acres, more or less, situated in the J. G. & O. Fisk Survey
     1073,  A-200  and  the  J. Hernandez Survey 962, A-229, in McMullen County,
     Texas, recorded by Memorandum of Oil and Gas Lease dated March 20, 2005, by
     and  between  Lessor and Lessee, in Volume 436, Page 01 of the Deed Records
     of  McMullen  County,  Texas; ratified by Ratification of Oil and Gas Lease
     dated  effective  March  30,  2005 by and between Will Grant Ryan and Manti
     Mustang  Creek,  Ltd., recorded in Volume 436, Page 331 of the Deed Records
     of  McMullen  County,  Texas.

34.  Oil, Gas  and Mineral Lease dated February 17, 2005, by and between Jo Anne
     Henry,  et  al, as Lessor, and Lara Energy, Inc., as Lessee, covering 276.6
     acres, more or less, situated in the F. H. Burmeister Survey No. 4, A-1061,
     the  G.  H.  &  H.  R. R. Survey No. 5, A-216, the F. H. Burmeister Survey,
     Section  4, A-1081, the James Montgomery Survey, A-1006, and the G. C. & S.
     F.  R.  R. Survey, A-930, in McMullen County, Texas, recorded by Memorandum
     of  Oil, Gas and Mineral Lease, by and between Lessor and Lessee, in Volume
     435,  Page  402  of  the  Deed  Records  of  McMullen  County,  Texas.

35.  Oil and  Gas  Lease  dated March 30, 2005, by and between American National
     Insurance  Company,  as  Lessor,  and Manti Mustang Creek, Ltd., as Lessee,
     covering  320  acres,  more  or  less, situated in the Maddox Bros. and the
     Anderson  Survey,  Section 2, A-697, in McMullen County, Texas, recorded by
     Memorandum of Oil and Gas Lease dated April 11, 2005, by and between Lessor
     and Lessee, in Volume 436, Page 07, of the Deed Records of McMullen County,
     Texas.

<PAGE>

36.  Oil, Gas  and Mineral Lease dated September 28, 2005, by and between George
     H.  Smyer,  as  Lessor,  and Manti Mustang Creek, Ltd., as Lessee, covering
     31.029 acres, more or less, situated in the E. S. Stout Survey, Section 18,
     A-1032,  in McMullen County, Texas, recorded by Memorandum Giving Notice of
     Oil  and  Gas  Lease  dated  September  28, 2005, by and between Lessor and
     Lessee,  in  Volume  439, Page 140, of the Deed Records of McMullen County,
     Texas.

37.  Oil, Gas and Mineral Lease dated November 15, 2005, by and between Hortense
     Karbach  Properties,  as  Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  25.6377  acres, more or less, situated in the E. S. Stout Survey,
     Section  18,  A-1032,  in  McMullen  County,  Texas, recorded by Memorandum
     Giving  Notice of Oil and Gas Lease dated November 15, 2005, by and between
     Lessor and Lessee, in Volume 440, Page 339, of the Deed Records of McMullen
     County,  Texas.

38.  Oil, Gas  and Mineral Lease dated November 15, 2005, by and between Eugenia
     Wells  Webster, et al, as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  63.333acres,  more  or  less, situated in the E. S. Stout Survey,
     Section  18,  A-1032,  in  McMullen  County,  Texas, recorded by Memorandum
     Giving  Notice of Oil and Gas Lease dated November 15, 2005, by and between
     Lessor and Lessee, in Volume 440, Page 343, of the Deed Records of McMullen
     County,  Texas.

39.  Oil, Gas  and Mineral Lease dated December 28, 2005, by and between Clifton
     Wheeler,  Jr.,  et al, as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  80  acres, more or less, situated in the Jose A. Hernandez Survey
     962,  A-229 in McMullen County, Texas, recorded by Memorandum Giving Notice
     of  Oil  and  Gas  Lease dated December 28, 2005, by and between Lessor and
     Lessee,  in  Volume  441, Page 286, of the Deed Records of McMullen County,
     Texas.

40.  Oil, Gas  and Mineral Lease dated December 22, 2005, by and between Domingo
     Garza,  Jr.,  et  al,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  50  acres,  more or less, situated in the C. Menchaca Survey, No.
     960, A-304, in McMullen County, Texas, recorded by Memorandum Giving Notice
     of  Oil  and  Gas  Lease dated December 22, 2005, by and between Lessor and
     Lessee,  in  Volume  441,  Page 72, of the Deed Records of McMullen County,
     Texas.

41.  Oil, Gas and Mineral Lease dated November 11, 2005, by and between Virginia
     Henry,  as  Lessor,  and  Manti Mustang Creek, Ltd., as Lessee, covering 20
     acres, more or less, situated in the C. Menchaca Survey, No. 960, A-304, in
     McMullen County, Texas, recorded by Memorandum Giving Notice of Oil and Gas
     Lease  dated November 11, 2005, by and between Lessor and Lessee, in Volume
     441,  Page  162,  of  the  Deed  Records  of  McMullen  County,  Texas.

42.  Oil and  Gas  Lease  dated  March  1,  2006,  by  and  between Devon Energy
     Production  Company,  L.P.,  as  Lessor,  and Manti Mustang Creek, Ltd., as

<PAGE>

     Lessee,  covering  160  acres,  more  or  less, situated in the W. H. Stout
     Survey, Section 20, A-1179, in Atascosa County, Texas, recorded as File No.
     80617  of  the  Oil  and  Gas  Lease  Records  of  Atascosa  County, Texas.

43.  Oil and  Gas  Lease dated March 8, 2006, by and between Texas Osage Royalty
     Pool,  Inc.,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering
     160  acres,  more  or less, situated in the W. H. Stout Survey, Section 20,
     A-1179,  in  Atascosa  County, Texas, recorded by Memorandum of Oil and Gas
     Lease  as  File  No.  80616  of  the  Oil and Gas Lease Records of Atascosa
     County,  Texas.

     RIGHT  OF  WAYS:

1.   Right of  Way  Agreement  dated  September 30, 2005, by and between Clifton
     Wheeler, Jr., et al, as Grantor, and Manti Mustang Creek, Ltd., as Grantee,
     situated  within  the B. B. B. & C. R. R. Survey, No. 1095, A-80 and the G.
     M. Hernandez Survey, No. 962, A-229, in McMullen County, Texas, recorded in
     Volume  439,  Page  371,  of  the  Deed  Records of McMullen County, Texas.

2.   Right of  Way Agreement dated October 12, 2005, by and between Margaret Ann
     Stephenson,  as Grantor, and Manti Mustang Creek, Ltd., as Lessee, situated
     within  the  G.  H. Smith Survey, No. 26, A-430, in McMullen County, Texas,
     recorded by Memorandum of Pipeline Easement and Right of Way in Volume 439,
     Page  143  of  the  Deed  Records  of  McMullen  County,  Texas.

<PAGE>

                                    EXHIBIT B

                                    CONTRACTS
                                    ---------

1.   Geophysical  Exploration  Agreement  dated  January 8, 2004, by and between
     Manti  Resources,  Inc.,  J  &  P  Oil  and Gas, Inc. and Lara Energy, Inc.
     covering  a  certain  geologic  area  located  in  McMullen,  Live Oak, and
     Atascosa  Counties,  Texas.

2.   Joint Operating  Agreement  dated  January  8,  2004,  by and between Manti
     Operating  Company,  as  Operator,  and  J  &  P Oil and Gas, Inc. and Lara
     Energy,  Inc., as non-Operators, covering the Mustang Creek Area located in
     McMullen,  Atascosa  and  Live  Oak  Counties,  Texas.

3.   Joint Operating  Agreement  dated  December  27, 2005, by and between Manti
     Operating  Company, as Operator, and Petrohawk Properties, LP, Lara Energy,
     inc.,  and  J  &  P Family Properties, Ltd., as Non-Operators, covering the
     Zulu  Area  of  Mustang  Creek  in  McMullen  County,  Texas.

4.   Farmout  Agreement  dated  January 10, 2006, by and between EnerQuest Oil &
     Gas,  LLC  and Chieftain Energy, LLC and Manti Mustang Creek, Ltd. covering
     an  Oil  and Gas Lease dated June 16, 1951, from Clifton Wheeler, et ux, as
     Lessor  and  V.  T. Donnelly, as Lessee, covering lands located in the Jose
     Hernandez  Survey  No.  962, McMullen County, Texas, recorded in Volume 48,
     Page  480,  of the Deed Records of McMullen County, Texas, known as Manti's
     Zulu  Prospect  in  the  Mustang  Creek  Area  in  McMullen  County, Texas.

5.   Declaration of Pooled Unit dated June 20, 2005, forming a one hundred sixty
     (160) acre pooled unit known as the Manti Mustang Creek, Ltd. - Tyler Ranch
     No.  1  Unit,  formed by Manti Mustang Creek, Ltd., recorded in Volume 436,
     Page 426 of the Deed Records of McMullen County, Texas, containing portions
     of  three  leases  and more further described in said Declaration of Pooled
     Unit.

6.   Declaration  of  Pooled  Unit  dated August 26, 2005, forming a one hundred
     sixty  acre  pooled  unit  known  as  the  Manti  Mustang  Creek,  Ltd.  -
     Powers-Swaim  No.  1 Unit, formed by Manti Mustang Creek, Ltd., recorded in
     Volume  438,  Page  352,  of  the  Deed  Records of McMullen County, Texas,
     containing  portions  of  two  leases  and  more  further described in said
     Declaration  of  Pooled  Unit

7.   Declaration  of  Pooled Unit dated December 14, 2005, forming a one hundred
     twenty  acre  pooled  unit  known  as the Manti Mustang Creek, Ltd. - Cajun
     Caper  No.  1  Unit, formed by Manti Mustang Creek, Ltd. recorded in Volume
     440,  Page  348 of the Deed Records of McMullen County, Texas, and File No.
     81171  of  the  Official  Records  of  Atascosa  County,  Texas, containing
     portions  of  three  leases  more  further described in said Declaration of
     Pooled  Unit.  EXHIBIT  B

<PAGE>

                              CONTRACTS (CONTINUED)
                              --------------------

8.   Declaration  of  Pooled  Unit  dated  August 8, 2005, forming a one hundred
     sixty  acre  pooled  unit  known  as  the  Manti  Mustang  Creek,  Ltd.,  -
     Rabke-Maspero  Unit  No. 1, formed by Manti Mustang Creek, Ltd. recorded in
     Volume  444,  Page  04  of  the  Deed  Records  of  McMullen County, Texas,
     containing  portions  of  three  leases  more  further  described  in  said
     Declaration  of  Pooled  Unit.

9.   Gulfmark  Oil Purchase Contract Number 51475 by and between Manti Operating
     Company and Gulfmark Energy, Inc., amended by Letter Agreement dated August
     2,  2005.

10.  Facility  Use Agreement dated October 1, 2005, by and between EnerQuest Oil
     &  Gas,  L.L.C.  and  Manti Operating Company covering the San Miguel Field
     Production  Facility  located  in  McMullen  County,  Texas.

11.  Gas Gathering  and Treating Agreement dated October 1, 2005, by and between
     Enbridge  Pipelines  (Texas  Gathering)  L.P.  and  Manti Operating Company
     covering  the area of interest known as the Manti Operating Co. Tyler Ranch
     Unit  No.  1  in  McMullen  County,  Texas.

12.  Seismic Permit Request dated April 1, 2006 by and between Seitel Data, LTD.
     and  Manti  Mustang Creek, LTD. covering approximately 100 acres located in
     the  B.S.F.  Survey  No.  57,  A-148;  approximately 5 acres located in the
     B.S.F. Survey No. 67, A-153; approximately 90 acres located in the B.S.& F.
     Survey  No.  65,  A-152;  approximately  160_acres  located  in J.B. Taylor
     Survey,  Section 68, A-637; and approximately 65 acres located in the Chas.
     S.  Burbank  Survey  No.  10,  A-61.

<PAGE>

                                    EXHIBIT C
                                    ---------

                           ASSIGNMENT AND BILL OF SALE
                           ---------------------------
                         OF OIL, GAS AND MINERAL LEASES
                         ------------------------------

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR
STRIKE  ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED
FOR  RECORD  IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S
LICENSE  NUMBER.

STATE  OF  TEXAS
                         KNOW  ALL  MEN  BY  THESE  PRESENTS,  THAT:
COUNTY  OF
            --------------

     This  Assignment  and  Bill  of  Sale  of Oil, Gas and Mineral Leases (this
"Assignment") is made effective as of 7:00 a.m. the 1st day of ___________, 200_
(hereinafter  referred  to  as  the  "Effective Date"), by and between [SELLER],
whose  address  is ____________________________ ("Assignor") and [BUYER] with an
address  of  ________________________________  ("Assignee").

                                       I.

     NOW,  THEREFORE,  for  and  in  consideration  of the sum of Ten and No/100
Dollars  ($10.00), cash in hand paid, and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged Assignor does hereby
BARGAIN,  SELL,  ASSIGN  and  TRANSFER  unto  Assignee,  subject to all recorded
royalty and overriding royalty interests, any other outstanding interests, depth
limitations  or reassignment obligations, if any, that may now burden Assignor's
interest  covered  by this Assignment, the following interests, all of which are
hereinafter  sometimes  referred  to  as  the  "Assigned  Interests",  to-wit:

a.   All of  Assignor's  right,  title  and  interest in and to the Oil, Gas and
     Mineral  Leases  described  in Exhibit "A" attached hereto and incorporated
     herein  by  reference  for  all purposes (the "Leases"), including, but not
     limited  to,  all  of  Assignor's  leasehold  estate and working interests,
     reversionary  interests,  recoupment  rights  and  any  other  interests
     whatsoever  in,  to and under the Leases, such Leases entitling Assignee to
     the  Working  Interests  and Net Revenue Interests in Wells located thereon
     described  on  Exhibit  "A"  and as provided in that certain Asset Purchase
     Agreement  dated  April________2006,  with Assignor and Assignee as parties
     (the  "Purchase  Agreement");

<PAGE>

b.   All of  Assignor's  right,  title  and  interest  in  and to (i) all of the
     personal  property,  fixtures  and  improvements  now  situated  thereon or
     appurtenant  thereto,  and  all other equipment, including, but not limited
     to,  the  tanks,  gun barrels, pumping units, dehydrators, tubing, wellhead
     equipment,  flowlines and compressors, if any and (ii) all wellbores on the
     lands  covered  by  the  Leases;

c.   All of  Assignor's  right,  title  and  interest  in  and  to all valid and
     existing rights-of-way, easements, surface leases, permits, or licenses now
     or  hereafter  affecting  the  Assigned  Interests;

d.   All of  Assignor's  right,  title  and  interest  in and to any amendments,
     ratifications,  renewals  or  extensions  of  the  Leases;  and

e.   All of  Assignor's  right,  title  and  interest in and to all oil, gas and
     other  minerals  that may be produced from all oil and/or gas wells located
     on  the  Assigned  Interests  subsequent  to  the  Effective  Date  hereof.

                                       II.
                                       --

     Assignee,  in consideration of the mutual benefits to be derived hereunder,
and  by its acceptance hereof, understands and agrees to the following terms and
conditions:

a.   Assignee  expressly  assumes  the  "Assumed  Liabilities"  defined  in that
                                         --------------------
     certain Asset Purchase Agreement by and between Assignor and Assignee dated
     April 28,  2006  (the  "Purchase  Agreement").
                              -------------------

b.   Without  limitation  of  the  foregoing  SECTION  II.A.,  Assignee  assumes
     proportionate  responsibility  for  and agrees to plug and abandon each and
     every  well located on the Assigned Interests and to restore the surface of
     the  Assigned  Interests  in accordance with applicable governmental rules,
     regulations,  laws  and  orders, and as may be required under the Leases or
     other  agreements  affecting  the  Assigned  Interests  and if there is any
     financial assurance required by any law, rule, or regulation, then Assignee
     shall  secure  a new financial assurance in the required amount, and supply
     it  to  the  regulatory body requiring such financial assurance, to the end
     that  Assignor's  financial  assurance shall be released and discharged. In
     the  event  Assignee  fails  to do any of the foregoing, Assignee agrees to
     release, indemnify, defend and hold harmless Assignor for all liability for
     such  failure.

d.   Without  limitation  of  the  foregoing  SECTION  II.A.,  Assignee  hereby
     expressly  assumes  and  agrees  to  be  bound by and to perform all of the
     duties and obligations accruing after the Effective Date of this Assignment
     under  the  Leases  or  any  agreement  affecting  the  Assigned  Interests
     proportionately  attributable  to  the percentage interest herein assigned.
     ASSIGNEE, ITS SUCCESSORS AND ASSIGNS, HEREBY AGREES TO INDEMNIFY AND DEFEND
     ASSIGNOR,  ITS  OFFICERS,  DIRECTORS,  AGENTS,  EMPLOYEES,  SUCCESSORS  AND
     ASSIGNS,  FROM  AND  AGAINST  ALL  CLAIMS,  DEMANDS  AND  CAUSES OF ACTION,
     INCLUDING  COSTS OF CLEAN-UP OR PLUGGING LIABILITIES FOR ANY AND ALL WELLS,

<PAGE>

     BROUGHT  BY ANY AND ALL PERSONS, INCLUDING (WITHOUT LIMITATION), ASSIGNEE'S
     AND  ASSIGNOR'S  EMPLOYEES,  AGENTS,  OR REPRESENTATIVES AND ALSO INCLUDING
     (WITHOUT  LIMITATION) ANY PRIVATE CITIZENS, PERSONS, ORGANIZATIONS, AND ANY
     AGENCY,  BRANCH OR REPRESENTATIVE OF FEDERAL, STATE OR LOCAL GOVERNMENT, ON
     ACCOUNT  OF ANY PERSONAL INJURY OR DEATH OR DAMAGE, DESTRUCTION, OR LOSS OF
     PROPERTY,  CONTAMINATION OF NATURAL RESOURCE (INCLUDING SOIL, SURFACE WATER
     OR  GROUND WATER) OR THE ENVIRONMENT, INCLUDING, WITHOUT LIMITATION, CLAIMS
     ARISING  UNDER  ENVIRONMENTAL  LAWS  RESULTING  FROM  OR ARISING OUT OF ANY
     LIABILITY  CAUSED BY OR CONNECTED WITH THE PRESENCE, DISPOSAL OR RELEASE OF
     ANY MATERIAL OF ANY KIND IN, ON OR UNDER THE ASSIGNED INTERESTS ON OR AFTER
     THE  EFFECTIVE  DATE,  WITHOUT REGARD TO ASSIGNOR'S (1) NEGLIGENCE, WHETHER
     SUCH  NEGLIGENCE  IS  ACTIVE  OR PASSIVE, JOINT, SOLE OR CONCURRENT, OR (2)
     STRICT  LIABILITY.  THIS  INDEMNIFICATION SHALL BE IN ADDITION TO ANY OTHER
     INDEMNITY  PROVISIONS  CONTAINED  IN  THIS  ASSIGNMENT, AND IT IS EXPRESSLY
     UNDERSTOOD  AND  AGREED THAT ANY TERMS OF THIS PARAGRAPH SHALL CONTROL OVER
     ANY CONFLICTING OR CONTRADICTING TERMS OR PROVISIONS CONTAINED ELSEWHERE IN
     THIS  ASSIGNMENT.

e.   The Assigned  Interests  have  been utilized by Assignor for the purpose of
     exploration,  development,  and  production  of  oil  and  gas.  Assignee
     acknowledges  that  there  may  have  been spills of crude oil and produced
     water or other material in the past on the Assigned Interests. In addition,
     some  production  equipment may contain asbestos and/or Naturally Occurring
     Radioactive  Material  (hereinafter referred to as "NORM"). In this regard,
                                                         ----
     Assignee  expressly understands that NORM may affix or attach itself to the
     inside  of  the wells, materials and equipment as scale, or in other forms,
     and  that  said  wells,  materials  and  equipment  located on the Assigned
     Interests  may contain NORM and that NORM-containing material may be buried
     or otherwise disposed of on the Assigned Interests. Assignee also expressly
     understands  that  special  procedures  may be required for the removal and
     disposal  of  asbestos  and  NORM from the equipment and Assigned Interests
     where  it  may  be  found  and  that  Assignee  assumes  all  liability for
     assessment,  removal  and  disposal  of  any  such materials and associated
     activities.

f.   ASSIGNEE  UNDERSTANDS  AND  AGREES THAT THIS TRANSFER IS MADE ON AN "AS IS,
     WHERE  IS", AND "WITH ALL FAULTS" BASIS AND ASSIGNEE RELEASES ASSIGNOR FROM
     ANY LIABILITY WITH RESPECT THERETO WHETHER OR NOT CAUSED BY OR ATTRIBUTABLE
     TO  ASSIGNOR'S  NEGLIGENCE  EXCEPT  AS  OTHERWISE  EXPRESSLY AGREED UPON IN
     WRITING  BY ASSIGNOR OR AS PROVIDED IN THIS PARAGRAPH. WITHOUT LIMITING THE

<PAGE>

     ABOVE, AND EXCEPT AS EXPRESSLY PROVIDED IN THIS ASSIGNMENT, ASSIGNEE WAIVES
     ITS  RIGHT  TO  RECOVER  FROM  ASSIGNOR AND FOREVER RELEASES AND DISCHARGES
     ASSIGNOR  FROM ANY AND ALL DAMAGES, CLAIMS, LOSSES, LIABILITIES, PENALTIES,
     FINES,  LIENS,  JUDGMENTS,  COSTS,  OR  EXPENSES,  WHATSOEVER,  (INCLUDING,
     WITHOUT LIMITATION, ATTORNEY'S FEES AND COSTS), WHETHER DIRECT OR INDIRECT,
     KNOWN  OR  UNKNOWN, FORESEEN OR UNFORESEEN, THAT MAY ARISE ON ACCOUNT OF OR
     IN  ANY  WAY  BE  CONNECTED  WITH  THE  PHYSICAL  CONDITION OF THE ASSIGNED
     INTERESTS  OR  ANY  ENVIRONMENTAL  LAW  OR  REGULATION  APPLICABLE THERETO.

                                      III.
                                      ---

     This  Assignment  is made and executed by Assignor and accepted by Assignee
subject  to  a  proportionate  part  of  the terms, conditions, reservations and
exceptions  set  forth  in  the  following:

a.   the terms,  provisions, covenants and royalties set forth in the Leases and
     any pooling, communitization and unitization agreements or orders affecting
     the  Assigned  Interests;

b.   all recorded  overriding  royalty  interests,  restrictions,  exceptions,
     reservations,  burdens,  encumbrances,  conditions, limitations, interests,
     assignments,  instruments,  agreements  and other matters, if any, that may
     burden  or  affect  Assignor's  interest  in  the  Assigned  Interests;

c.   the terms  and  conditions  contained  in  any  Joint  Operating  Agreement
     covering  the  Assigned  Interests;  and

d.   all Federal,  State,  and  local laws and to all orders, rules, regulations
     and  standards  issued  thereunder  by  all  duly  constituted  political
     subdivisions and agencies having jurisdiction, and Assignee hereby warrants
     that it will comply with same. Further, Assignee specifically warrants that
     it  will  comply  with  any  and  all  laws, orders, rules, regulations and
     standards  of  all  Federal,  State  and  local  political subdivisions and
     agencies applicable to (1) all exploration, drilling, production, plugging,
     and  abandonment procedures, and (2) the control, regulation and prevention
     of  pollution,  including,  but  not  limited  to, salt water discharge and
     contamination.

                                       IV.
                                       ---

ASSIGNEE  ACKNOWLEDGES THAT ASSIGNOR HAS NOT MADE, AND ASSIGNOR HEREBY EXPRESSLY
DISCLAIMS  AND  NEGATES: (A) ANY WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED,
RELATING  TO  THE  CONDITION  OF  ANY  IMMOVABLE  PROPERTY,  MOVABLE  PROPERTY,
EQUIPMENT, INVENTORY, MACHINERY, FIXTURES AND PERSONAL PROPERTY CONSTITUTING ANY
PART  OF  THE ASSIGNED INTERESTS: (B) ANY AND ALL REPRESENTATIONS AND WARRANTIES
AS TO ALL EQUIPMENT, PERSONAL PROPERTY, AND FIXTURES WHICH ARE SOLD AND CONVEYED
ON  AN  "AS  IS",  "WHERE  IS", AND "WITH ALL FAULTS" BASIS: (C) ANY WARRANTY OR
REPRESENTATION,  WHETHER  EXPRESS,  IMPLIED, STATUTORY OR OTHERWISE, RELATING TO

<PAGE>

THE  CONDITION,  QUANTITY, QUALITY, FITNESS FOR A PARTICULAR PURPOSE, CONFORMITY
TO  THE  MODELS OR SAMPLES OF MATERIALS OR MERCHANTABILITY OF ANY EQUIPMENT; (D)
ANY  WARRANTY OF FITNESS FOR ANY PURPOSE: (E) ANY IMPLIED OR EXPRESS WARRANTY OF
FREEDOM  FROM  REDHIBITORY  VICES  OR DEFECTS OR OTHER VICES OR DEFECTS, WHETHER
KNOWN  OR  UNKNOWN: (F) ANY AND ALL IMPLIED WARRANTIES EXISTING UNDER APPLICABLE
LAW  NOW  OR  HEREAFTER IN EFFECT. ASSIGNEE SHALL HAVE INSPECTED, OR WAIVED (AND
UPON  CLOSING SHALL BE DEEMED TO HAVE WAIVED) ITS RIGHT TO INSPECT, THE ASSIGNED
INTERESTS  FOR ALL PURPOSES AND SATISFIED ITSELF AS TO THEIR PHYSICAL CONDITION,
BOTH SURFACE AND SUBSURFACE.  ASSIGNEE IS RELYING SOLELY UPON ITS OWN INSPECTION
OF  THE  ASSIGNED  INTERESTS, AND ASSIGNEE SHALL ACCEPT ALL OF THE SAME IN THEIR
"AS  IS,  WHERE IS", AND "WITH ALL FAULTS" CONDITION. ALSO WITHOUT LIMITATION OF
THE  FOREGOING,  ASSIGNOR MAKES NO WARRANTY OR REPRESENTATION, EXPRESS, IMPLIED,
STATUTORY OR OTHERWISE, AS TO THE ACCURACY OR COMPLETENESS OF ANY DATA, REPORTS,
RECORDS,  PROJECTIONS,  INFORMATION  OR  MATERIALS  NOW, HERETOFORE OR HEREAFTER
FURNISHED  OR  MADE  AVAILABLE  TO  ASSIGNEE  IN CONNECTION WITH THIS ASSIGNMENT
INCLUDING,  WITHOUT  LIMITATION,  RELATIVE  TO PRICING ASSUMPTIONS OR QUALITY OR
QUANTITY OF HYDROCARBON RESERVES (IF ANY) ATTRIBUTABLE TO THE ASSIGNED INTERESTS
OR THE ABILITY OR POTENTIAL OF THE ASSIGNED INTERESTS TO PRODUCE HYDROCARBONS OR
THE  ENVIRONMENTAL  CONDITION  OF  THE  ASSIGNED  INTERESTS OR ANY OTHER MATTERS
CONTAINED  IN  THE MATERIALS FURNISHED OR MADE AVAILABLE TO ASSIGNEE BY ASSIGNOR
OR  BY  ASSIGNOR'S  AGENTS  OR REPRESENTATIVES.  ANY AND ALL SUCH DATA, RECORDS,
REPORTS,  PROJECTIONS,  INFORMATION  AND  OTHER  MATERIALS  (WRITTEN  OR  ORAL)
FURNISHED BY ASSIGNOR OR OTHERWISE MADE AVAILABLE OR DISCLOSED TO ASSIGNEE SHALL
NOT CREATE OR GIVE RISE TO ANY LIABILITY OF OR AGAINST ASSIGNOR AND ANY RELIANCE
ON  OR  USE  OF  THE SAME SHALL BE AT ASSIGNEE'S SOLE RISK TO THE MAXIMUM EXTENT
PERMITTED  BY  LAW.

ASSIGNEE  REPRESENTS  AND  WARRANTS  THAT  SUCH  ASSIGNEE  IS AN EXPERIENCED AND
KNOWLEDGEABLE INVESTOR IN OIL AND GAS PROPERTIES, HAS THE FINANCIAL AND BUSINESS
EXPERTISE  TO  EVALUATE THE MERITS AND RISKS OF THE TRANSACTIONS COVERED BY THIS
ASSIGNMENT,  AND  HAS  RELIED  SOLELY  ON  THE  BASIS  OF  ITS  OWN  INDEPENDENT
INVESTIGATION  OF THE ASSIGNED INTERESTS FOR ALL PURPOSES. ASSIGNEE ACKNOWLEDGES

<PAGE>

THAT  IT  HAS  HAD  THE  OPPORTUNITY  TO  SEEK  THE  ADVICE OF PERSONS IT DEEMED
APPROPRIATE CONCERNING THE CONSEQUENCES OF THE PROVISIONS OF THIS ASSIGNMENT AND
HEREBY WAIVES ANY AND ALL RIGHTS TO CLAIM THAT IT IS AN UNSOPHISTICATED INVESTOR
IN  OIL  AND  GAS  PROPERTIES.

                                       V.
                                      ---

     It  is  the intention and agreement of Assignor and Assignee hereunder that
the  provisions of this Assignment be severable. Should the whole or any portion
of a section or paragraph be judicially held to be void or invalid, such holding
shall not affect other portions which can be given effect without the invalid or
void  portion.

     Assignor and Assignee hereby agree that all of the covenants and agreements
contained  herein  shall  extend to and be obligatory upon the heirs, executors,
representatives,  administrators,  successors,  and  assigns  of  Assignor  and
Assignee,  and  shall  be  covenants  running  with  the  land.

     TO  HAVE  AND  TO  HOLD  the  same unto the Assignees, their successors and
assigns, according to the terms, covenants and conditions of the Leases and this
Assignment.

     Assignee  joins  in  the execution hereof for the purpose of being bound by
all  of  the  terms,  provisions,  obligations  and  covenants herein specified.

     ASSIGNOR  WILL  ONLY  WARRANT AND FOREVER DEFEND THE RIGHT AND TITLE TO THE
ABOVE  DESCRIBED ASSIGNED INTERESTS UNTO THE SAID ASSIGNEE AGAINST THE CLAIMS OF
THOSE  PERSONS  CLAIMING  BY,  THROUGH  OR  UNDER  ASSIGNOR,  BUT NOT OTHERWISE.

     ASSIGNEE  ACKNOWLEDGES  THAT  ALL  BOLDED  PROVISIONS  HEREIN  RELATING  TO
INDEMNITY OBLIGATIONS, RELEASES AND WAIVERS ARE CONSPICUOUS, SATISFY THE EXPRESS
NEGLIGENCE  RULE  UNDER  TEXAS  LAW  AND  REPRESENT  A  MATERIAL  BARGAINED  FOR
ALLOCATION  OF  RISK  BETWEEN  ASSIGNOR  AND  ASSIGNEE.

     IN  WITNESS  WHEREOF, this instrument is executed as of the acknowledgement
date  of  each of the parties hereto, but shall be effective as of the Effective
Date  hereof.

                                        ASSIGNOR:

                                        [SELLER]

                                        By:
                                           -------------------------------

                                        ASSIGNEE:

                                        [BUYER]

                                        By:
                                           ------------------------------

<PAGE>

                               [ACKNOWLEDGEMENTS]

<PAGE>
                                  SCHEDULE 2.09

<PAGE>

                                    EXHIBIT D

                              DISCLOSURE SCHEDULES
                              --------------------

<PAGE>

                                  SCHEDULE 3.02
                                  -------------
                 SELLER'S AUTHORIZATIONS; CONFLICTS AND CONSENTS
                 -----------------------------------------------

1.   Oil, Gas  and  Mineral  Lease dated March 16, 2005, by and between Double K
     Property,  Ltd.,  as  Lessor,  and  Manti  Mustang  Creek, Ltd., as Lessee,
     covering  700  acres,  more  or  less,  situated  in the B. S. & F. Survey,
     Section  61,  A-150,  the  J.  B. Taylor Survey, Section 68, A-637, and the
     B.S.F.  Survey,  Section  59,  A-149 in McMullen County, Texas, recorded by
     Memorandum  Giving Notice of Oil and Gas Lease dated March 16, 2005, by and
     between  Lessor and Lessee, in Volume 435, Page 437, of the Deed Records of
     McMullen  County,  Texas,  ratified  by  Ratification of Oil and Gas Leases
     dated April 20, 2005, by and between James F. Roark, Jr., and Manti Mustang
     Creek,  Ltd.,  recorded  in  Volume  436,  Page  56  of the Deed Records of
     McMullen  County,  Texas.

2.   Oil and  Gas  Lease  dated March 30, 2005, by and between American National
     Insurance  Company,  as  Lessor,  and Manti Mustang Creek, Ltd., as Lessee,
     covering  320  acres,  more  or  less, situated in the Maddox Bros. and the
     Anderson  Survey,  Section 2, A-697, in McMullen County, Texas, recorded by
     Memorandum of Oil and Gas Lease dated April 11, 2005, by and between Lessor
     and Lessee, in Volume 436, Page 07, of the Deed Records of McMullen County,
     Texas.

3.   Oil, Gas  and Mineral Lease dated December 28, 2005, by and between Clifton
     Wheeler,  Jr.,  et al, as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  80  acres, more or less, situated in the Jose A. Hernandez Survey
     962,  A-229 in McMullen County, Texas, recorded by Memorandum Giving Notice
     of  Oil  and  Gas  Lease dated December 28, 2005, by and between Lessor and
     Lessee,  in  Volume  441, Page 286, of the Deed Records of McMullen County,
     Texas.

4.   Oil and  Gas  Lease  dated  March  1,  2006,  by  and  between Devon Energy
     Production  Company,  L.P.,  as  Lessor,  and Manti Mustang Creek, Ltd., as
     Lessee,  covering  160  acres,  more  or  less, situated in the W. H. Stout
     Survey, Section 20, A-1179, in Atascosa County, Texas, recorded as File No.
     80617  of  the  Oil  and  Gas  Lease  Records  of  Atascosa  County, Texas.

5.   Oil and  Gas  Lease dated March 8, 2006, by and between Texas Osage Royalty
     Pool,  Inc.,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering
     160  acres,  more  or less, situated in the W. H. Stout Survey, Section 20,
     A-1179,  in  Atascosa  County, Texas, recorded by Memorandum of Oil and Gas
     Lease  as  File  No.  80616  of  the  Oil and Gas Lease Records of Atascosa
     County,  Texas.

6.   Right of  Way  Agreement  dated  September 30, 2005, by and between Clifton
     Wheeler, Jr., et al, as Grantor, and Manti Mustang Creek, Ltd., as Grantee,
     situated  within  the B. B. B. & C. R. R. Survey, No. 1095, A-80 and the G.
     M. Hernandez Survey, No. 962, A-229, in McMullen County, Texas, recorded in
     Volume  439,  Page  371,  of  the  Deed  Records of McMullen County, Texas.

<PAGE>

                                  SCHEDULE 3.05
                                  -------------
                          LEGAL PROCEEDINGS AND ORDERS
                          ----------------------------

NONE

<PAGE>

                                  SCHEDULE 3.11
                                  -------------
                                    CONSENTS
                                    --------

1.   Oil, Gas  and  Mineral  Lease dated March 16, 2005, by and between Double K
     Property,  Ltd.,  as  Lessor,  and  Manti  Mustang  Creek, Ltd., as Lessee,
     covering  700  acres,  more  or  less,  situated  in the B. S. & F. Survey,
     Section  61,  A-150,  the  J.  B. Taylor Survey, Section 68, A-637, and the
     B.S.F.  Survey,  Section  59,  A-149 in McMullen County, Texas, recorded by
     Memorandum  Giving Notice of Oil and Gas Lease dated March 16, 2005, by and
     between  Lessor and Lessee, in Volume 435, Page 437, of the Deed Records of
     McMullen  County,  Texas,  ratified  by  Ratification of Oil and Gas Leases
     dated April 20, 2005, by and between James F. Roark, Jr., and Manti Mustang
     Creek,  Ltd.,  recorded  in  Volume  436,  Page  56  of the Deed Records of
     McMullen  County,  Texas.

2.   Oil and  Gas  Lease  dated March 30, 2005, by and between American National
     Insurance  Company,  as  Lessor,  and Manti Mustang Creek, Ltd., as Lessee,
     covering  320  acres,  more  or  less, situated in the Maddox Bros. and the
     Anderson  Survey,  Section 2, A-697, in McMullen County, Texas, recorded by
     Memorandum of Oil and Gas Lease dated April 11, 2005, by and between Lessor
     and Lessee, in Volume 436, Page 07, of the Deed Records of McMullen County,
     Texas.

3.   Oil, Gas  and Mineral Lease dated December 28, 2005, by and between Clifton
     Wheeler,  Jr.,  et al, as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  80  acres, more or less, situated in the Jose A. Hernandez Survey
     962,  A-229 in McMullen County, Texas, recorded by Memorandum Giving Notice
     of  Oil  and  Gas  Lease dated December 28, 2005, by and between Lessor and
     Lessee,  in  Volume  441, Page 286, of the Deed Records of McMullen County,
     Texas.

4.   Oil and  Gas  Lease  dated  March  1,  2006,  by  and  between Devon Energy
     Production  Company,  L.P.,  as  Lessor,  and Manti Mustang Creek, Ltd., as
     Lessee,  covering  160  acres,  more  or  less, situated in the W. H. Stout
     Survey, Section 20, A-1179, in Atascosa County, Texas, recorded as File No.
     80617  of  the  Oil  and  Gas  Lease  Records  of  Atascosa  County, Texas.

5.   Oil and  Gas  Lease dated March 8, 2006, by and between Texas Osage Royalty
     Pool,  Inc.,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering
     160  acres,  more  or less, situated in the W. H. Stout Survey, Section 20,
     A-1179,  in  Atascosa  County, Texas, recorded by Memorandum of Oil and Gas
     Lease  as  File  No.  80616  of  the  Oil and Gas Lease Records of Atascosa
     County,  Texas.

6.   Right of  Way  Agreement  dated  September 30, 2005, by and between Clifton
     Wheeler, Jr., et al, as Grantor, and Manti Mustang Creek, Ltd., as Grantee,
     situated  within  the B. B. B. & C. R. R. Survey, No. 1095, A-80 and the G.
     M. Hernandez Survey, No. 962, A-229, in McMullen County, Texas, recorded in
     Volume  439,  Page  371,  of  the  Deed  Records of McMullen County, Texas.

<PAGE>

                                  SCHEDULE 3.12
                                  -------------
                                 GAS IMBALANCES
                                 --------------

NONE

<PAGE>

                                  SCHEDULE 3.14
                                  -------------
                        NOTICES OF CONTRACT CANCELLATION
                        --------------------------------

NONE

<PAGE>

                                  SCHEDULE 5.02
                                  -------------

               ARTICLE 10 SCHEDULE OF LEASES RELEASED OR ASSIGNED

Released

-    Lessor:  Tyler  Ranch  Partners,  LTD
     Lessee:  Manti  Mustang  Creek,  LTD.
     Date: March  30,  2005
     Recorded:  Memorandum  @  Volume  436  Page  3,  DR  McMullen County, Texas

-    Lessor:  The  Annie  Crain  Trust
     Lessee:  Manti  Mustang  Creek,  LTD
     Date: March  15,  2005
     Recorded:  Memorandum  @  Volume  435  Page  326, DR McMullen County, Texas

Assigned

-    Lessor:  Tyler  Ranch  Partners,  LTD
     Lessee:  Manti  Mustang  Creek,  LTD
     Date: March  30,  2005
     Recorded:  Memorandum  @  Volume  436  Page  5,  DR  McMullen County, Texas

<PAGE>

                                  SCHEDULE 2.02
                                  -------------
                          ALLOCATION OF PURCHASE PRICE
                          ----------------------------

<PAGE>Exhibit 10.2

                          SECURITIES PURCHASE AGREEMENT
                          -----------------------------

                            LAURUS MASTER FUND, LTD.

                                       AND

                           GULF COAST OIL CORPORATION

                             DATED:  APRIL 26, 2006

<PAGE>

                                TABLE OF CONTENTS
                                -----------------
                                                                            PAGE
                                                                            ----

1.     Agreement  to  Sell  and  Purchase                                    1

2.     Fees  and  Warrant                                                    1

3.     Closing,  Delivery  and  Payment.                                     2
       3.1     Closing                                                       2
       3.2     Delivery                                                      2

4.     Representations  and  Warranties  of  the  Company                    2
       4.1     Organization,  Good  Standing  and  Qualification             2
       4.2     Subsidiaries                                                  3
       4.3     Capitalization;  Voting  Rights.                              3
       4.4     Authorization;  Binding  Obligations                          4
       4.5     Liabilities                                                   4
       4.6     Agreements;  Action                                           5
       4.7     Obligations  to  Related  Parties                             6
       4.8     Changes                                                       7
       4.9     Title  to  Properties  and  Assets;  Liens,  Etc              8
       4.10    Intellectual  Property.                                       8
       4.11    Compliance  with  Other  Instruments                          9
       4.12    Litigation                                                    9
       4.13    Tax  Returns  and  Payments                                   9
       4.14    Employees                                                     10
       4.15    Voting  Rights                                                10
       4.16    Compliance  with  Laws;  Permits                              10
       4.17    Environmental  and  Safety  Laws                              11
       4.18    Valid  Offering                                               11
       4.19    Full  Disclosure                                              11
       4.20    Insurance                                                     12
       4.21    Dilution                                                      12
       4.22    Patriot  Act                                                  12
       4.23    ERISA                                                         12
       4.24    Registration  Rights                                          13

5.     Representations  and  Warranties  of  the  Purchaser                  13
       5.1     Requisite  Power  and  Authority                              13
       5.2     Investment  Representations                                   13
       5.3     The  Purchaser  Bears  Economic  Risk                         14
       5.4     Acquisition  for  Own  Account                                14
       5.5     The  Purchaser  Can  Protect  Its  Interest                   14
       5.6     Accredited  Investor                                          14
       5.7     Legends.                                                      14

<PAGE>

6.     Covenants  of  the  Company                                           15
       6.1     Reporting  Requirements                                       15
       6.2     Use  of  Funds                                                16
       6.3     Access  to  Facilities                                        16
       6.4     Taxes                                                         17
       6.5     Insurance                                                     17
       6.6     Intellectual  Property                                        18
       6.7     Properties                                                    18
       6.8     Confidentiality                                               18
       6.9     Required  Approvals                                           18
       6.10    Opinion                                                       20
       6.11    Margin  Stock                                                 20
       6.12    Financing  Right  of  First  Refusal.                         20
       6.13    Authorization  and  Reservation  of  Shares                   21
       6.14    Operator  Reports                                             21

7.     Covenants  of  the  Purchaser                                         21
       7.1     Confidentiality                                               21
       7.2     Limitation on Acquisition of Common Stock of the Company      21

8.     Covenants of the Company and the Purchaser Regarding Indemnification. 21
       8.1     Company  Indemnification                                      21
       8.2     Purchaser's  Indemnification                                  22

9.     Miscellaneous.                                                        22
       9.1     Governing  Law,  Jurisdiction  and  Waiver  of  Jury  Trial.  22
       9.2     Severability                                                  23
       9.3     Survival                                                      23
       9.4     Successors                                                    24
       9.5     Entire  Agreement;  Maximum  Interest                         24
       9.6     Amendment  and  Waiver.                                       24
       9.7     Delays  or  Omissions                                         24
       9.8     Notices                                                       24
       9.9     Attorneys'  Fees                                              26
       9.10    Titles  and  Subtitles                                        26
       9.11    Facsimile  Signatures;  Counterparts                          26
       9.12    Broker's  Fees                                                26
      9.13     Construction                                                  26

<PAGE>

                                LIST OF EXHIBITS

Form  of  Term  Note                                                 Exhibit  A
Form  of  Warrant                                                    Exhibit  B
Form  of  Opinion                                                    Exhibit  C
Form  of  Escrow  Agreement                                          Exhibit  D

                                LIST OF SCHEDULES

Schedule  4.2     Subsidiaries
Schedule  4.3     Capitalization
Schedule  4.6     Agreements
Schedule  4.7     Obligations  to  Related  Parties
Schedule  4.9     Title  to  Properties  and  Assets,  Liens,  Etc.
Schedule  4.12    Litigation
Schedule  4.13    Tax  Returns  and  Payments
Schedule  4.14    Employees
Schedule  4.15    Voting  Rights
Schedule  4.17    Environmental
Schedule  6.9     Required  Approvals
Schedule  9.12    Brokers

<PAGE>

                          SECURITIES PURCHASE AGREEMENT

     THIS  SECURITIES  PURCHASE AGREEMENT (this "Agreement") is made and entered
into  as  of  April 26,  2006,  by  and  between GULF COAST OIL CORPORATION , a
Delaware  corporation  (the  "Company"),  and LAURUS MASTER FUND, LTD., a Cayman
Islands  company  (the  "Purchaser").

                                    RECITALS

     WHEREAS,  the Company has authorized the sale to the Purchaser of a Secured
Term  Note  in  the aggregate principal amount of Forty Million ($40,000,000) in
the form of Exhibit A hereto (as amended, modified and/or supplemented from time
            ---------
to  time,  the  "Note");

     WHEREAS, the Company wishes to issue to the Purchaser a warrant in the form
of Exhibit B hereto (as amended, modified and/or supplemented from time to time,
   ---------
the "Warrant") to purchase up to 961 shares of the Company's common stock, $.001
par  value  per  share  (the  "Common  Stock");

     WHEREAS,  the Purchaser desires to purchase the Note and the Warrant on the
terms  and  conditions  set  forth  herein;  and

     WHEREAS,  the Company desires to issue and sell the Note and the Warrant to
the  Purchaser  on  the  terms  and  conditions  set  forth  herein.

                                    AGREEMENT

     NOW,  THEREFORE,  in consideration of the foregoing recitals and the mutual
promises,  representations,  warranties  and covenants hereinafter set forth and
for  other good and valuable consideration, the receipt and sufficiency of which
are  hereby  acknowledged,  the  parties  hereto  agree  as  follows:

     1. Agreement to Sell and Purchase. Pursuant to the terms and conditions set
        ------------------------------
forth  in  this  Agreement,  on  the Closing Date (as defined in Section 3), the
Company  shall  sell to the Purchaser, and the Purchaser shall purchase from the
Company,  the  Note.  The sale of the Note on the Closing Date shall be known as
the  "Offering."  The  Note  will mature on the Maturity Date (as defined in the
Note).  Collectively,  the  Note  and the Warrant and Common Stock issuable upon
exercise  of  the  Warrant  are  referred  to  as  the  "Securities."

     2.  Fees  and  Warrant.  On  the  Closing  Date:
         ------------------

          (a) The Company will issue and deliver to the Purchaser the Warrant to
     purchase  up  to  961  shares of Common Stock (subject to adjustment as set
     forth  therein)  in  connection  with  the  Offering, pursuant to Section 1
     hereof.  All  the representations, covenants, warranties, undertakings, and
     indemnification,  and other rights made or granted to or for the benefit of
     the  Purchaser  by  the  Company  are  hereby also made and granted for the
     benefit  of  the  holder  of the Warrant and shares of the Company's Common
     Stock  issuable  upon  exercise  of  the  Warrant  (the  "Warrant Shares").

                                        1
<PAGE>

          (b)  Subject to the terms of Section 2(d) below, the Company shall pay
     to  Laurus Capital Management, LLC, the manager of the Purchaser, a closing
     payment  in  an  amount  equal to three and one half percent (3.50%) of the
     aggregate  principal  amount  of the Note. The foregoing fee is referred to
     herein  as  the  "Closing  Payment."

          (c)  The  Company  shall  reimburse  the  Purchaser for its reasonable
     expenses  (including  legal  fees and expenses) incurred in connection with
     the  preparation  and  negotiation  of  this  Agreement  and  the  Related
     Agreements  (as  hereinafter  defined), and expenses incurred in connection
     with  the  Purchaser's  due  diligence  review  of  the  Company  and  its
     Subsidiaries  (as  defined in Section 4.2) and all related matters. Amounts
     required  to  be  paid  under this Section 2(c) will be paid on the Closing
     Date.

          (d)  The Closing Payment and the expenses referred to in the preceding
     clause  (c)  (net of deposits previously paid by the Company) shall be paid
     at  closing  out of funds held pursuant to the Escrow Agreement (as defined
     below)  and  a  disbursement  letter  (the  "Disbursement  Letter").

     3.  Closing,  Delivery  and  Payment.
         --------------------------------

          3.1  Closing.  Subject to the terms and conditions herein, the closing
               -------
     of  the  transactions contemplated hereby (the "Closing"), shall take place
     on  the date hereof, at such time or place as the Company and the Purchaser
     may  mutually  agree  (such date is hereinafter referred to as the "Closing
     Date").

          3.2  Delivery. Pursuant to the Escrow Agreement, at the Closing on the
               --------
     Closing  Date,  the  Company  will  deliver  to  the Purchaser, among other
     things,  the  Note  and  the  Warrant and the Purchaser will deliver to the
     Company,  among  other  things,  the  amounts set forth in the Disbursement
     Letter by certified funds or wire transfer. The Company hereby acknowledges
     and  agrees  that  Purchaser's  obligation  to  purchase  the Note from the
     Company  on  the Closing Date shall be contingent upon the satisfaction (or
     waiver  by  the  Purchaser in its sole discretion) of the items and matters
     set forth in the closing checklist provided by the Purchaser to the Company
     on  or  prior  to  the  Closing  Date.

     4.  Representations and Warranties of  the  Company.  The  Company  hereby
         -----------------------------------------------
represents  and  warrants  to  the  Purchaser  as  follows:

          4.1 Organization, Good Standing and Qualification. Each of New Century
              ---------------------------------------------
     Energy  Corp.  (the  "Parent"),  Company  and each of its Subsidiaries is a
     corporation,  partnership or limited liability company, as the case may be,
     duly organized, validly existing and in good standing under the laws of its
     jurisdiction  of  organization. Each of the Parent, the Company and each of
     its  Subsidiaries  has  the  corporate,  limited  liability  company  or
     partnership, as the case may be, power and authority to own and operate its
     properties and assets and, insofar as it is or shall be a party thereto, to
     (1)  execute  and deliver (i) this Agreement, (ii) the Note and the Warrant
     to  be  issued in connection with this Agreement, (iii) the Master Security
     Agreement  dated  as  of  the  date  hereof  among the Company, the Parent,
     certain Subsidiaries of the Company and the Purchaser (as amended, modified
     and/or  supplemented  from  time to time, the "Master Security Agreement"),
     (iv)  the  Restricted  Account  Agreement dated as of the date hereof among

                                        2
<PAGE>

     North  Fork  Bank,  a  New  York  banking  corporation, the Company and the
     Purchaser,  (v)  the Mortgage, Deed of Trust, Security Agreement, Financing
     Statement  and Assignment of Production dated as of the date hereof made by
     the  Company  in  favor  of  the  Purchaser  (as  amended,  modified and/or
     supplemented  from  time  to  time), (vi) the Guaranty dated as of the date
     hereof  made  by the Parent in favor of the Purchaser (as amended, modified
     and/or  supplemented  from  time to time, the "Parent Guaranty"), (vii) the
     Stock  Pledge  Agreement dated as of the date hereof between the Parent and
     the  Purchaser (as amended, modified and/or supplemented from time to time,
     the  "Stock  Pledge Agreement"), (viii) the Funds Escrow Agreement dated as
     of  the  date  hereof among the Company, the Purchaser and the escrow agent
     referred  to  therein,  substantially  in  the form of Exhibit D hereto (as
                                                            ---------
     amended,  modified  and/or  supplemented  from  time  to  time, the "Escrow
     Agreement")  and  (ix)  all  other  documents,  instruments  and agreements
     entered  into  in  connection with the transactions contemplated hereby and
     thereby  (the  preceding  clauses  (ii)  through  (ix),  collectively,  the
     "Related  Agreements"); (2) issue and sell the Note; (3) issue and sell the
     Warrant  and  the  Warrant Shares; and (4) carry out the provisions of this
     Agreement  and  the  Related  Agreements  and  to  carry on its business as
     presently  conducted.  Each  of  the  Parent,  the  Company and each of its
     Subsidiaries  is  duly qualified and is authorized to do business and is in
     good  standing  as  a foreign corporation, partnership or limited liability
     company,  as  the  case may be, in all jurisdictions in which the nature or
     location  of  its  activities and of its properties (both owned and leased)
     makes such qualification necessary, except for those jurisdictions in which
     failure  to  do  so  has  not, or could not reasonably be expected to have,
     individually  or  in  the  aggregate,  a  material  adverse  effect  on the
     business,  assets,  liabilities,  condition  (financial  or  otherwise),
     properties,  operations  or  prospects  of  the Parent, the Company and its
     Subsidiaries,  taken  individually  and  as  a  whole  (a "Material Adverse
     Effect").

          4.2  Subsidiaries.  Each  direct and indirect Subsidiary of the Parent
               ------------
     and  Company,  the  direct  owner  of  such  Subsidiary  and its percentage
     ownership  thereof,  is  set forth on Schedule 4.2. For the purpose of this
     Agreement,  a  "Subsidiary" of any person or entity means (i) a corporation
     or  other  entity whose shares of stock or other ownership interests having
     ordinary voting power (other than stock or other ownership interests having
     such  power  only  by  reason of the happening of a contingency) to elect a
     majority of the directors of such corporation, or other persons or entities
     performing similar functions for such person or entity, are owned, directly
     or  indirectly,  by  such  person  or entity or (ii) a corporation or other
     entity  in  which  such person or entity owns, directly or indirectly, more
     than  50%  of  the  equity  interests  at  such  time.

          4.3  Capitalization;  Voting  Rights.
               -------------------------------

          (a)  The  authorized  capital  stock  of  the  Company, as of the date
     hereof,  consists  of  1,000,000  shares,  of which 1,000,000 are shares of
     Company  Common Stock, par value $.001 per share, and 1,000 shares of which
     are  issued and outstanding. The authorized, issued and outstanding capital
     stock  of  each  Subsidiary  of  the  Company is set forth on Schedule 4.3.

          (b)  Except  as  disclosed on Schedule 4.3, other than: (i) the shares
     reserved  for  issuance  under  the  Company's stock option plans; and (ii)
     shares  which  may  be  granted  pursuant to this Agreement and the Related
     Agreements,  there  are no outstanding options, warrants, rights (including

                                        3
<PAGE>

     conversion  or  preemptive  rights  and  rights of first refusal), proxy or
     stockholder  agreements,  or arrangements or agreements of any kind for the
     purchase  or  acquisition from the Company of any of its securities. Except
     as disclosed on Schedule 4.3, neither the offer, issuance or sale of any of
     the  Note or the Warrant, or the issuance of any of the Warrant Shares, nor
     the  consummation  of  any transaction contemplated hereby will result in a
     change in the price or number of any securities of the Company outstanding,
     under  anti-dilution  or other similar provisions contained in or affecting
     any  such  securities.

          (c)  All  issued and outstanding shares of the Company's Common Stock:
     (i)  have  been  duly  authorized and validly issued and are fully paid and
     nonassessable; and (ii) were issued in compliance with all applicable state
     and  federal  laws  concerning  the  issuance  of  securities.

          (d) The rights, preferences, privileges and restrictions of the shares
     of  the  Common  Stock  are  as  stated  in  the  Company's  Certificate of
     Incorporation  (the  "Charter").  The  Warrant  Shares  have  been duly and
     validly  reserved  for  issuance.  When  issued  in  compliance  with  the
     provisions of this Agreement and the Company's Charter, the Securities will
     be  validly  issued,  fully paid and nonassessable, and will be free of any
     liens  or  encumbrances;  provided,  however,  that  the  Securities may be
     subject  to  restrictions on transfer under state and/or federal securities
     laws  as set forth herein or as otherwise required by such laws at the time
     a  transfer  is  proposed.

          4.4  Authorization; Binding Obligations. All corporate, partnership or
               ----------------------------------
     limited  liability  company,  as the case may be, action on the part of the
     Parent,  Company  and  each of its Subsidiaries (including their respective
     officers  and  directors) necessary for the authorization of this Agreement
     and  the  Related  Agreements,  the  performance  of all obligations of the
     Parent,  Company and its Subsidiaries hereunder and under the other Related
     Agreements  at  the  Closing  and,  the  authorization,  sale, issuance and
     delivery  of the Note and the Warrant has been taken or will be taken prior
     to  the  Closing.  This Agreement and the Related Agreements, when executed
     and  delivered  and  to the extent it is a party thereto, will be valid and
     binding  obligations  of  each  of  the  Parent,  Company  and  each of its
     Subsidiaries,  enforceable against each such person or entity in accordance
     with  their  terms,  except:

          (a)  as  limited by applicable bankruptcy, insolvency, reorganization,
     moratorium  or  other  laws of general application affecting enforcement of
     creditors'  rights;  and

          (b)  general  principles  of  equity that restrict the availability of
     equitable  or  legal  remedies.

The  sale of the Note is not and will not be subject to any preemptive rights or
rights  of  first  refusal  that have not been properly waived or complied with.
The  issuance  of  the  Warrant  and  the subsequent exercise of the Warrant for
Warrant  Shares  are  not  and  will  not be subject to any preemptive rights or
rights  of  first  refusal  that have not been properly waived or complied with.

          4.5  Liabilities.  Neither the Company nor any of its Subsidiaries has
               -----------
     any liabilities, except current liabilities incurred in the ordinary course
     of  business.

          4.6  Agreements;  Action.  Except  as  set  forth  on  Schedule  4.6:
               -------------------

                                        4
<PAGE>

          (a)  there  are no agreements, understandings, instruments, contracts,
     proposed  transactions,  judgments,  orders,  writs or decrees to which the
     Company or any of its Subsidiaries is a party or by which it is bound which
     may  involve: (i) obligations (contingent or otherwise) of, or payments to,
     the  Company  or  any  of its Subsidiaries in excess of $50,000 (other than
     obligations  of,  or  payments  to,  the Company or any of its Subsidiaries
     arising  from  purchase  or  sale  agreements  entered into in the ordinary
     course  of  business);  or  (ii)  the  transfer  or  license of any patent,
     copyright,  trade  secret or other proprietary right to or from the Company
     or  any  of its Subsidiaries (other than licenses arising from the purchase
     of  "off  the  shelf"  or  other  standard  products);  or (iii) provisions
     restricting  the  development, manufacture or distribution of the Company's
     or any of its Subsidiaries products or services; or (iv) indemnification by
     the  Company  or  any  of its Subsidiaries with respect to infringements of
     proprietary  rights.

          (b)  Neither the Company nor any of its Subsidiaries has: (i) declared
     or  paid any dividends, or authorized or made any distribution upon or with
     respect  to  any  class  or  series of its capital stock; (ii) incurred any
     indebtedness  for  money  borrowed  or  any  other  liabilities (other than
     ordinary  course  obligations) individually in excess of $50,000 or, in the
     case  of indebtedness and/or liabilities individually less than $50,000, in
     excess  of  $100,000  in the aggregate; (iii) made any loans or advances to
     any  person  or  entity not in excess, individually or in the aggregate, of
     $100,000,  other than ordinary course advances for travel expenses; or (iv)
     sold, exchanged or otherwise disposed of any of its assets or rights, other
     than  the  sale  of  its  inventory  in  the  ordinary  course of business.

          (c)  For  the  purposes  of  subsections  (a)  and  (b)  above,  all
     indebtedness,  liabilities,  agreements,  understandings,  instruments,
     contracts  and  proposed  transactions  involving the same person or entity
     (including persons or entities the Company or any Subsidiary of the Company
     has reason to believe are affiliated therewith) shall be aggregated for the
     purpose  of  meeting  the  individual  minimum  dollar  amounts  of  such
     subsections.

          (d) The Company makes and keeps books, records, and accounts, that, in
     reasonable  detail,  accurately  and  fairly  reflect  the transactions and
     dispositions  of  the  Company's  assets.  The  Company  maintains internal
     control  over financial reporting ("Financial Reporting Controls") designed
     by,  or  under  the  supervision  of, the Company's principal executive and
     principal  financial  officers,  and  effected  by  the  Company's board of
     directors, management, and other personnel, to provide reasonable assurance
     regarding  the  reliability  of  financial reporting and the preparation of
     financial  statements  for  external  purposes in accordance with generally
     accepted  accounting  principles  ("GAAP"),  including  that:

               (i)  transactions  are  executed  in accordance with management's
          general  or  specific  authorization;

                                        5
<PAGE>

               (ii)  unauthorized  acquisition,  use,  or  disposition  of  the
          Company's  assets  that  could have a material effect on the financial
          statements  are  prevented  or  timely  detected;

               (iii)  transactions  are  recorded  as  necessary  to  permit
          preparation  of financial statements in accordance with GAAP, and that
          the  Company's  receipts  and  expenditures  are  being  made  only in
          accordance  with  authorizations of the Company's management and board
          of  directors;

               (iv)  transactions  are  recorded  as  necessary  to  maintain
          accountability  for  assets;  and

               (v)  the  recorded accountability for assets is compared with the
          existing  assets  at  reasonable  intervals, and appropriate action is
          taken  with  respect  to  any  differences.

          4.7  Obligations  to  Related Parties. Except as set forth on Schedule
               --------------------------------
     4.7,  there are no obligations of the Company or any of its Subsidiaries to
     officers, directors, stockholders or employees of the Company or any of its
     Subsidiaries  other  than:

          (a)  for  payment  of  salary  for  services  rendered  and  for bonus
     payments;

          (b)  reimbursement  for  reasonable expenses incurred on behalf of the
     Company  and  its  Subsidiaries;

          (c)  for  other standard employee benefits made generally available to
     all  employees  (including  stock  option  agreements outstanding under any
     stock  option  plan  approved  by the Board of Directors of the Company and
     each  Subsidiary  of  the  Company,  as  applicable);  and

          (d)  obligations  listed in the Company's and each of its Subsidiary's
     financial  statements.

Except  as  described  above or set forth on Schedule 4.7, none of the officers,
directors  or,  to  the  best  of  the  Company's  knowledge,  key  employees or
stockholders  of  the Company or any of its Subsidiaries or any members of their
immediate  families,  are  indebted  to  the Company or any of its Subsidiaries,
individually  or  in  the  aggregate, in excess of $50,000 or have any direct or
indirect ownership interest in any firm or corporation with which the Company or
any  of  its  Subsidiaries is affiliated or with which the Company or any of its
Subsidiaries  has  a  business  relationship,  or  any firm or corporation which
competes  with  the  Company  or  any  of  its  Subsidiaries, other than passive
investments  in  publicly  traded  companies (representing less than one percent
(1%)  of  such  company)  which  may  compete  with  the  Company  or any of its
Subsidiaries.  Except as described above, no officer, director or stockholder of
the  Company  or  any  of  its  Subsidiaries,  or  any member of their immediate
families,  is,  directly or indirectly, interested in any material contract with
the  Company  or  any  of  its Subsidiaries and no agreements, understandings or
proposed  transactions  are  contemplated  between  the  Company  or  any of its

                                        6
<PAGE>

Subsidiaries  and any such person.  Except as set forth on Schedule 4.7, neither
the  Company  nor  any  of  its Subsidiaries is a guarantor or indemnitor of any
indebtedness  of  any  other  person  or  entity.

          4.8  Changes. Except as disclosed in any Schedule to this Agreement or
               -------
     to  any  of  the  Related  Agreements,  there  has  not  been:

          (a)  any  change  in  the  business,  assets,  liabilities,  condition
     (financial  or  otherwise),  properties,  operations  or  prospects  of the
     Company  or any of its Subsidiaries, which individually or in the aggregate
     has  had,  or  could reasonably be expected to have, individually or in the
     aggregate,  a  Material  Adverse  Effect;

          (b)  any  resignation  or  termination of any officer, key employee or
     group  of  employees  of  the  Company  or  any  of  its  Subsidiaries;

          (c) any material change, except in the ordinary course of business, in
     the contingent obligations of the Company or any of its Subsidiaries by way
     of  guaranty,  endorsement,  indemnity,  warranty  or  otherwise;

          (d)  any  damage,  destruction  or  loss,  whether  or  not covered by
     insurance,  which  has  had,  or  could  reasonably  be  expected  to have,
     individually  or  in  the  aggregate,  a  Material  Adverse  Effect;

          (e) any waiver by the Company or any of its Subsidiaries of a valuable
     right  or  of  a  material  debt  owed  to  it;

          (f)  any  direct  or  indirect loans made by the Company or any of its
     Subsidiaries  to  any  stockholder,  employee,  officer  or director of the
     Company  or  any  of  its  Subsidiaries,  other  than  advances made in the
     ordinary  course  of  business;

          (g)  any  material change in any compensation arrangement or agreement
     with  any  employee, officer, director or stockholder of the Company or any
     of  its  Subsidiaries;

          (h)  any  declaration or payment of any dividend or other distribution
     of  the  assets  of  the  Company  or  any  of  its  Subsidiaries;

          (i)  any  labor organization activity related to the Company or any of
     its  Subsidiaries;

          (j)  any debt, obligation or liability incurred, assumed or guaranteed
     by  the  Company  or  any  of its Subsidiaries, except those for immaterial
     amounts  and  for  current  liabilities  incurred in the ordinary course of
     business;

          (k)  any  sale,  assignment  or  transfer  of any patents, trademarks,
     copyrights,  trade  secrets or other intangible assets owned by the Company
     or  any  of  its  Subsidiaries;

          (l)  any  change in any material agreement to which the Company or any
     of its Subsidiaries is a party or by which either the Company or any of its

                                        7
<PAGE>

     Subsidiaries  is  bound  which  either individually or in the aggregate has
     had,  or  could  reasonably  be  expected  to  have, individually or in the
     aggregate,  a  Material  Adverse  Effect;

          (m)  any  other  event  or  condition  of  any  character that, either
     individually  or in the aggregate, has had, or could reasonably be expected
     to  have,  individually  or in the aggregate, a Material Adverse Effect; or

          (n)  any  arrangement  or  commitment  by  the  Company  or any of its
     Subsidiaries  to do any of the acts described in subsection (a) through (m)
     above.

          4.9 Title to Properties and Assets; Liens, Etc. Except as set forth on
              ------------------------------------------
     Schedule 4.9, each of the Company and each of its Subsidiaries has good and
     marketable  title  to  its  properties  and  assets,  and good title to its
     leasehold  interests,  in  each  case subject to no mortgage, pledge, lien,
     lease,  encumbrance  or  charge,  other  than:

          (a)  those  resulting from taxes which have not yet become delinquent;

          (b)  minor liens and encumbrances which do not materially detract from
     the  value  of  the  property  subject  thereto  or  materially  impair the
     operations  of  the  Company or any of its Subsidiaries, so long as in each
     such  case, such liens and encumbrances have no effect on the lien priority
     of  the  Purchaser  in  such  property;  and

          (c)  those  that  have  otherwise  arisen  in  the  ordinary course of
     business,  so  long  as  they  have  no  effect on the lien priority of the
     Purchaser  therein.

All  facilities,  machinery,  equipment, fixtures, vehicles and other properties
owned,  leased or used by the Company and its Subsidiaries are in good operating
condition  and  repair  and  are  reasonably fit and usable for the purposes for
which they are being used.  Except as set forth on Schedule 4.9, the Company and
its  Subsidiaries  are  in  compliance  with all material terms of each lease to
which  it  is  a  party  or  is  otherwise  bound.

          4.10  Intellectual  Property.
                ----------------------

          (a) Each of the Company and each of its Subsidiaries owns or possesses
     sufficient  legal  rights  to all patents, trademarks, service marks, trade
     names,  copyrights,  trade  secrets,  licenses,  information  and  other
     proprietary  rights  and  processes  necessary  for  its  business  as  now
     conducted  and,  to  the  Company's  knowledge, as presently proposed to be
     conducted  (the "Intellectual Property"), without any known infringement of
     the  rights  of  others.  There  are  no  outstanding  options, licenses or
     agreements of any kind relating to the foregoing proprietary rights, nor is
     the  Company or any of its Subsidiaries bound by or a party to any options,
     licenses or agreements of any kind with respect to the patents, trademarks,
     service  marks,  trade  names,  copyrights,  trade  secrets,  licenses,
     information  and other proprietary rights and processes of any other person
     or  entity other than such licenses or agreements arising from the purchase
     of  "off  the  shelf"  or  standard  products.

          (b)  Neither  the Company nor any of its Subsidiaries has received any
     communications  alleging  that  the  Company or any of its Subsidiaries has

                                        8
<PAGE>

     violated  any  of  the  patents,  trademarks,  service  marks, trade names,
     copyrights or trade secrets or other proprietary rights of any other person
     or entity, nor is the Company or any of its Subsidiaries aware of any basis
     therefor.

          (c) The Company does not believe it is or will be necessary to utilize
     any  inventions,  trade  secrets  or  proprietary information of any of its
     employees  made  prior  to  their  employment  by the Company or any of its
     Subsidiaries,  except  for  inventions,  trade  secrets  or  proprietary
     information that have been rightfully assigned to the Company or any of its
     Subsidiaries.

          4.11  Compliance  with  Other Instruments. Neither the Parent, Company
                -----------------------------------
     nor  any  of its Subsidiaries is in violation or default of (x) any term of
     its  Charter or Bylaws, or (y) any provision of any indebtedness, mortgage,
     indenture,  contract,  agreement  or  instrument to which it is party or by
     which  it  is  bound  or  of  any  judgment,  decree,  order or writ, which
     violation  or  default,  in  the case of this clause (y), has had, or could
     reasonably  be expected to have, either individually or in the aggregate, a
     Material  Adverse  Effect.  The  execution, delivery and performance of and
     compliance  with this Agreement and the Related Agreements to which it is a
     party,  and  the issuance and sale of the Note by the Company and the other
     Securities  by  the  Company pursuant hereto and thereto, will not, with or
     without  the  passage  of  time  or  giving  of  notice, result in any such
     material  violation,  or  be in conflict with or constitute a default under
     any  such  term  or  provision,  or result in the creation of any mortgage,
     pledge, lien, encumbrance or charge upon any of the properties or assets of
     the  Parent,  Company  or  any  of  its  Subsidiaries  or  the  suspension,
     revocation,  impairment,  forfeiture  or nonrenewal of any permit, license,
     authorization  or  approval  applicable  to  the Parent or the Company, its
     business  or  operations  or  any  of  its  assets  or  properties.

          4.12 Litigation. Except as set forth on Schedule 4.12 hereto, there is
               ----------
     no  action,  suit, proceeding or investigation pending or, to the Company's
     knowledge,  currently  threatened against the Parent, Company or any of its
     Subsidiaries  that  prevents the Parent, Company or any of its Subsidiaries
     from  entering into this Agreement or the other Related Agreements, or from
     consummating  the transactions contemplated hereby or thereby, or which has
     had, or could reasonably be expected to have, either individually or in the
     aggregate,  a  Material  Adverse Effect or any change in the current equity
     ownership  of  the  Parent,  Company or any of its Subsidiaries, nor is the
     Company  aware  that  there  is  any  basis to assert any of the foregoing.
     Neither  the  Parent,  Company nor any of its Subsidiaries is a party to or
     subject  to  the  provisions  of  any  order, writ, injunction, judgment or
     decree  of  any  court or government agency or instrumentality. There is no
     action,  suit, proceeding or investigation by the Parent, Company or any of
     its  Subsidiaries  currently pending or which the Parent, Company or any of
     its  Subsidiaries  intends  to  initiate.

          4.13  Tax  Returns  and  Payments. Each of the Company and each of its
                ---------------------------
     Subsidiaries  has  timely  filed all tax returns (federal, state and local)
     required  to  be filed by it. All taxes shown to be due and payable on such
     returns,  any  assessments  imposed, and all other taxes due and payable by
     the  Company or any of its Subsidiaries on or before the Closing, have been
     paid  or  will  be paid prior to the time they become delinquent. Except as
     set forth on Schedule 4.13, neither the Company nor any of its Subsidiaries
     has  been  advised:

                                        9
<PAGE>

          (a) that any of its returns, federal, state or other, have been or are
     being  audited  as  of  the  date  hereof;  or

          (b)  of  any  adjustment,  deficiency, assessment or court decision in
     respect  of  its  federal,  state  or  other  taxes.

The Company has no knowledge of any liability for any tax to be imposed upon its
properties  or  assets  as  of the date of this Agreement that is not adequately
provided  for.

          4.14  Employees.  Except  as  set  forth on Schedule 4.14, neither the
                ---------
     Company  nor  any  of  its  Subsidiaries  has  any  collective  bargaining
     agreements  with  any  of its employees. There is no labor union organizing
     activity pending or, to the Company's knowledge, threatened with respect to
     the  Company  or  any  of its Subsidiaries. Except as disclosed on Schedule
     4.14,  neither  the  Company  nor  any of its Subsidiaries is a party to or
     bound by any currently effective employment contract, deferred compensation
     arrangement,  bonus  plan,  incentive plan, profit sharing plan, retirement
     agreement  or  other  employee  compensation  plan  or  agreement.  To  the
     Company's knowledge, no employee of the Company or any of its Subsidiaries,
     nor  any  consultant  with  whom the Company or any of its Subsidiaries has
     contracted,  is  in  violation  of  any  term  of  any employment contract,
     proprietary  information  agreement  or any other agreement relating to the
     right  of  any  such individual to be employed by, or to contract with, the
     Company or any of its Subsidiaries because of the nature of the business to
     be  conducted  by  the  Company  or  any  of  its  Subsidiaries; and to the
     Company's  knowledge  the  continued  employment  by  the  Company  and its
     Subsidiaries  of  their  present  employees,  and  the  performance  of the
     Company's and its Subsidiaries' contracts with its independent contractors,
     will  not  result in any such violation. Neither the Company nor any of its
     Subsidiaries  is  aware  that  any  of its employees is obligated under any
     contract  (including  licenses,  covenants or commitments of any nature) or
     other  agreement,  or subject to any judgment, decree or order of any court
     or  administrative  agency  that  would  interfere with their duties to the
     Company  or  any  of  its  Subsidiaries. Neither the Company nor any of its
     Subsidiaries  has  received any notice alleging that any such violation has
     occurred.  Except  for  employees  who  have a current effective employment
     agreement  with  the Company or any of its Subsidiaries, no employee of the
     Company  or any of its Subsidiaries has been granted the right to continued
     employment  by  the  Company  or any of its Subsidiaries or to any material
     compensation following termination of employment with the Company or any of
     its  Subsidiaries. Except as set forth on Schedule 4.14, the Company is not
     aware  that  any  officer,  key  employee  or group of employees intends to
     terminate  his,  her  or  their  employment  with the Company or any of its
     Subsidiaries,  nor  does  the  Company  or  any  of its Subsidiaries have a
     present  intention to terminate the employment of any officer, key employee
     or  group  of  employees.

          4.15  Voting  Rights.  Except  as  set  forth on Schedule 4.15, to the
                --------------
     Company's  knowledge,  no  stockholder  of  the  Company  or  any  of  its
     Subsidiaries  has  entered into any agreement with respect to the voting of
     equity  securities  of  the  Company  or  any  of  its  Subsidiaries.

          4.16  Compliance  with  Laws; Permits. Neither the Parent, Company nor
                -------------------------------
     any  of  its  Subsidiaries is in violation of any provision of the Sarbanes
     Oxley  Act  of  2002  applicable  statute,  rule,  regulation,  order  or
     restriction of any domestic or foreign government or any instrumentality or

                                       10
<PAGE>

     agency  thereof  in respect of the conduct of its business or the ownership
     of  its  properties which has had, or could reasonably be expected to have,
     either  individually  or  in  the  aggregate, a Material Adverse Effect. No
     governmental orders, permissions, consents, approvals or authorizations are
     required  to  be obtained and no registrations or declarations are required
     to be filed in connection with the execution and delivery of this Agreement
     or  any  other Related Agreement and the issuance of any of the Securities,
     except  such  as  have  been  duly  and  validly obtained or filed, or with
     respect  to  any  filings  that  must be made after the Closing, as will be
     filed  in a timely manner. Each of the Company and its Subsidiaries has all
     material  franchises, permits, licenses and any similar authority necessary
     for  the  conduct of its business as now being conducted by it, the lack of
     which  could,  either  individually  or  in  the  aggregate,  reasonably be
     expected  to  have  a  Material  Adverse  Effect.

          4.17  Environmental  and  Safety Laws. Neither the Parent, Company nor
                -------------------------------
     any  of  its Subsidiaries is in violation of any applicable statute, law or
     regulation  relating  to the environment or occupational health and safety,
     and  to  its knowledge, no material expenditures are or will be required in
     order  to  comply with any such existing statute, law or regulation. Except
     as  set  forth  on Schedule 4.17, no Hazardous Materials (as defined below)
     are  used  or have been used, stored, or disposed of by the Parent, Company
     or  any  of  its  Subsidiaries or, to the Company's knowledge, by any other
     person  or  entity  on  any  property  owned, leased or used by the Parent,
     Company  or  any  of  its  Subsidiaries.  For the purposes of the preceding
     sentence,  "Hazardous  Materials"  shall  mean:

          (a)  materials which are listed or otherwise defined as "hazardous" or
     "toxic"  under any applicable local, state, federal and/or foreign laws and
     regulations  that  govern  the  existence and/or remedy of contamination on
     property, the protection of the environment from contamination, the control
     of  hazardous  wastes,  or other activities involving hazardous substances,
     including  building  materials;  or

          (b)  any  petroleum  products  or  nuclear  materials.

          4.18  Valid Offering. Assuming the accuracy of the representations and
                --------------
     warranties  of  the  Purchaser contained in this Agreement, the offer, sale
     and  issuance  of  the  Securities  will  be  exempt  from the registration
     requirements  of  the  Securities  Act of 1933, as amended (the "Securities
     Act"),  and  will  have  been  registered  or qualified (or are exempt from
     registration  and  qualification)  under  the  registration,  permit  or
     qualification  requirements  of  all  applicable  state  securities  laws.

          4.19 Full Disclosure. Each of the Company and each of its Subsidiaries
               ---------------
     has  provided the Purchaser with all information requested by the Purchaser
     in  connection  with  its  decision  to  purchase the Note and the Warrant,
     including  all  information  the  Company  and  its Subsidiaries believe is
     reasonably  necessary  to  make  such  investment  decision.  Neither  this
     Agreement,  the  Related  Agreements, the exhibits and schedules hereto and
     thereto  nor  any  other  document  delivered  by the Company or any of its
     Subsidiaries to Purchaser or its attorneys or agents in connection herewith
     or  therewith  or  with  the  transactions  contemplated hereby or thereby,
     contain  any  untrue  statement  of  a  material  fact  nor omit to state a
     material fact necessary in order to make the statements contained herein or
     therein,  in  light  of  the  circumstances  in  which  they  are made, not
     misleading.  Any  financial projections and other estimates provided to the

                                       11
<PAGE>

     Purchaser  by  the  Company  or  any  of its Subsidiaries were based on the
     Company's  and  its  Subsidiaries'  experience  in  the  industry  and  on
     assumptions  of  fact  and opinion as to future events which the Company or
     any of its Subsidiaries, at the date of the issuance of such projections or
     estimates,  believed  to  be  reasonable.

          4.20  Insurance.  Each of the Company and each of its Subsidiaries has
                ---------
     general commercial, product liability, fire and casualty insurance policies
     with  coverages  which  the  Company  believes  are customary for companies
     similarly  situated  to  the  Company  and  its Subsidiaries in the same or
     similar  business.

          4.21  Dilution.  The  Company  specifically  acknowledges  that  its
                --------
     obligation to issue the shares of Common Stock upon exercise of the Warrant
     is binding upon the Company and enforceable regardless of the dilution such
     issuance  may  have on the ownership interests of other shareholders of the
     Company.

          4.22 Patriot Act. The Company certifies that, to the best of Company's
               -----------
     knowledge, neither the Parent, Company nor any of its Subsidiaries has been
     designated,  nor  is  or  shall  be  owned  or  controlled, by a "suspected
     terrorist"  as  defined  in  Executive  Order  13224.  The  Company  hereby
     acknowledges  that  the  Purchaser seeks to comply with all applicable laws
     concerning money laundering and related activities. In furtherance of those
     efforts,  the  Company  hereby represents, warrants and covenants that: (i)
     none  of  the  cash  or  property  that  the  Parent, Company or any of its
     Subsidiaries will pay or will contribute to the Purchaser has been or shall
     be  derived from, or related to, any activity that is deemed criminal under
     United  States  law;  and  (ii)  no  contribution or payment by the Parent,
     Company  or any of its Subsidiaries or to the Purchaser, to the extent that
     they  are within the Company's and/or its Subsidiaries' and/or the Parent's
     control  shall  cause the Purchaser to be in violation of the United States
     Bank  Secrecy Act, the United States International Money Laundering Control
     Act  of  1986 or the United States International Money Laundering Abatement
     and Anti-Terrorist Financing Act of 2001. The Company shall promptly notify
     the  Purchaser  if  any  of  these representations, warranties or covenants
     ceases  to  be  true  and  accurate  regarding  the  Company,  any  of  its
     Subsidiaries  or  the  Parent.  The Company shall provide the Purchaser all
     additional  information  regarding  the Company, any of its Subsidiaries or
     the  Parent  that  the  Purchaser  deems  necessary or convenient to ensure
     compliance with all applicable laws concerning money laundering and similar
     activities.  The  Company  understands and agrees that if at any time it is
     discovered  that  any  of  the  foregoing  representations,  warranties  or
     covenants  are  incorrect,  or  if  otherwise required by applicable law or
     regulation related to money laundering or similar activities, the Purchaser
     may  undertake appropriate actions to ensure compliance with applicable law
     or  regulation,  including but not limited to segregation and/or redemption
     of  the  Purchaser's  investment  in  the  Company.  The  Company  further
     understands  that  the Purchaser may release confidential information about
     the  Company,  its  Subsidiaries  and  the  Parent  and, if applicable, any
     underlying  beneficial  owners,  to proper authorities if the Purchaser, in
     its  sole  discretion,  determines  that it is in the best interests of the
     Purchaser  in  light  of  relevant rules and regulations under the laws set
     forth  in  subsection  (ii)  above.

          4.23  ERISA. Based upon the Employee Retirement Income Security Act of
                -----
     1974  ("ERISA"),  and  the  regulations  and  published  interpretations
             -----
     thereunder: (i) neither the Company nor any of its Subsidiaries has engaged
     in  any  Prohibited  Transactions  (as  defined in Section 406 of ERISA and
     Section  4975  of  the  Internal  Revenue  Code  of  1986,  as amended (the

                                       12
<PAGE>

     "Code")); (ii) each of the Company and each of its Subsidiaries has met all
     applicable  minimum  funding  requirements  under  Section  302 of ERISA in
     respect of its plans; (iii) neither the Company nor any of its Subsidiaries
     has  any knowledge of any event or occurrence which would cause the Pension
     Benefit  Guaranty  Corporation  to  institute proceedings under Title IV of
     ERISA  to  terminate any employee benefit plan(s); (iv) neither the Company
     nor  any  of  its  Subsidiaries  has  any  fiduciary  responsibility  for
     investments  with  respect  to any plan existing for the benefit of persons
     other  than  the  Company's or such Subsidiary's employees; and (v) neither
     the  Company  nor  any  of  its  Subsidiaries  has withdrawn, completely or
     partially,  from  any  multi-employer pension plan so as to incur liability
     under  the  Multiemployer  Pension  Plan  Amendments  Act  of  1980.

          4.24  Registration Rights. Not later than ten (10) business days prior
                -------------------
     to  the Company's completion, if ever, of an initial public offering of its
     securities  or  the  publicly  trading  of  the  Company's securities (i.e.
     through  a reverse merger or otherwise), the Company shall execute in favor
     of  Laurus  a  Registration  Rights  Agreement,  in  form  and  substance
     satisfactory  to Laurus, with respect to the shares underlying the Warrant,
     the provisions of which shall be deemed incorporated herein by reference to
     the  extent  necessary  to  effectuate  the  purpose  and  intent  of  this
     provision.  The provisions of this Section 4.24 shall not be subject to any
     cure  or  grace  period  as  may  be  applicable  thereto under any Related
     Agreement.

     5.  Representations  and Warranties of  the Purchaser. The Purchaser hereby
         -------------------------------------------------
represents  and  warrants  to  the  Company as follows (such representations and
warranties  do  not  lessen or obviate the representations and warranties of the
Company  set  forth  in  this  Agreement):

          5.1  Requisite  Power  and  Authority. The Purchaser has all necessary
               --------------------------------
     power  and  authority under all applicable provisions of law to execute and
     deliver  this  Agreement  and the Related Agreements and to carry out their
     provisions.  All  corporate action on the Purchaser's part required for the
     lawful  execution and delivery of this Agreement and the Related Agreements
     have  been  or  will  be effectively taken prior to the Closing. Upon their
     execution  and  delivery, this Agreement and the Related Agreements will be
     valid  and  binding obligations of the Purchaser, enforceable in accordance
     with  their  terms,  except:

          (a)  as  limited by applicable bankruptcy, insolvency, reorganization,
     moratorium  or  other  laws of general application affecting enforcement of
     creditors'  rights;  and

          (b)  as  limited  by  general  principles  of equity that restrict the
     availability  of  equitable  and  legal  remedies.

          5.2  Investment  Representations.  The  Purchaser understands that the
               ---------------------------
     Securities  are  being  offered  and  sold  pursuant  to  an exemption from
     registration  contained  in  the  Securities  Act  based  in  part upon the
     Purchaser's representations contained in this Agreement, including, without
     limitation,  that  the  Purchaser  is  an  "accredited investor" within the
     meaning  of  Regulation D under the Securities Act of 1933, as amended (the
     "Securities  Act").  The Purchaser confirms that it has received or has had
     full access to all the information it considers necessary or appropriate to
     make  an  informed  investment  decision  with  respect to the Note and the

                                       13
<PAGE>

     Warrant  to  be purchased by it under this Agreement and the Warrant Shares
     acquired  by  it  upon  the  exercise  of  the  Warrant,  respectively. The
     Purchaser  further confirms that it has had an opportunity to ask questions
     and  receive  answers  from  the  Company  regarding  the Company's and its
     Subsidiaries'  business, management and financial affairs and the terms and
     conditions of the Offering, the Note, the Warrant and the Securities and to
     obtain  additional  information  (to  the extent the Company possessed such
     information  or  could  acquire  it without unreasonable effort or expense)
     necessary  to verify any information furnished to the Purchaser or to which
     the  Purchaser  had  access.

          5.3  The  Purchaser Bears Economic Risk. The Purchaser has substantial
               ----------------------------------
     experience in evaluating and investing in private placement transactions of
     securities  in  companies  similar  to the Company so that it is capable of
     evaluating  the  merits  and risks of its investment in the Company and has
     the  capacity  to  protect  its  own  interests.

          5.4  Acquisition for Own Account. The Purchaser is acquiring the Note,
               ---------------------------
     the  Warrant  and  the  Warrant  Shares for the Purchaser's own account for
     investment  only, and not as a nominee or agent and not with a view towards
     or  for  resale  in  connection  with  their  distribution.

          5.5  The  Purchaser Can Protect Its Interest. The Purchaser represents
               ---------------------------------------
     that  by  reason  of  its,  or  of its management's, business and financial
     experience, the Purchaser has the capacity to evaluate the merits and risks
     of  its  investment  in  the  Note,  the  Warrant and the Securities and to
     protect  its own interests in connection with the transactions contemplated
     in  this  Agreement  and  the Related Agreements. Further, the Purchaser is
     aware  of  no  publication  of  any  advertisement  in  connection with the
     transactions  contemplated  in  the  Agreement  or  the Related Agreements.

          5.6  Accredited  Investor.  The  Purchaser  represents  that  it is an
               --------------------
     accredited investor within the meaning of Regulation D under the Securities
     Act.

          5.7  Legends.
               -------

          (a)  The  Warrant  shall  bear  substantially  the  following  legend:

                 "THIS  WARRANT  AND  THE  COMMON  SHARES  ISSUABLE  UPON
                 EXERCISE  OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
                 SECURITIES  ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE
                 SECURITIES LAWS. THIS WARRANT AND THE COMMON SHARES ISSUABLE
                 UPON  EXERCISE  OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR
                 SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
                 REGISTRATION  STATEMENT AS TO THIS WARRANT OR THE UNDERLYING
                 SHARES  OF  COMMON  STOCK  UNDER  SAID  ACT  AND  APPLICABLE

                                       14
<PAGE>

          STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY
          TO GULF COAST OIL CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED."

          (b)  The  Warrant  Shares,  if  not  issued  by the Deposit Withdrawal
          Agent  Commission  system,  shall  bear  a  legend  which  shall be in
          substantially  the  following form until such shares are covered by an
          effective  registration  statement  filed  with  the  Securities  and
          Exchange  Commission:

            "THE  SHARES  REPRESENTED  BY  THIS  CERTIFICATE  HAVE  NOT  BEEN
            REGISTERED  UNDER  THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
            APPLICABLE  STATE  SECURITIES LAWS. THESE SHARES MAY NOT BE SOLD,
            OFFERED  FOR  SALE,  PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
            EFFECTIVE  REGISTRATION  STATEMENT  UNDER SUCH SECURITIES ACT AND
            APPLICABLE  STATE  LAWS  OR  AN  OPINION  OF  COUNSEL  REASONABLY
            SATISFACTORY TO GULF COAST OIL CORPORATION THAT SUCH REGISTRATION
            IS  NOT  REQUIRED."

     6.  Covenants  of  the  Company.  The Company covenants and agrees with the
         ---------------------------
Purchaser  as  follows:

          6.1  Reporting  Requirements. The Company will deliver, or cause to be
               -----------------------
     delivered,  to  the Purchaser each of the following, which shall be in form
     and  detail  acceptable  to  the  Purchaser:

          (a) As soon as available, and in any event within one hundred and five
     (105) days after the end of each fiscal year of the Parent and the Company,
     each  of  the Parent's Company's audited financial statements with a report
     of independent certified public accountants of recognized standing selected
     by  the  Company and acceptable to the Purchaser (the "Accountants"), which
                                                            -----------
     annual  financial  statements  shall  be  without  qualification  and shall
     include  each of the Parent's and the Company's balance sheet as at the end
     of  such fiscal year and the related statements of each of the Parent's and
     the  Company's income, retained earnings and cash flows for the fiscal year
     then  ended,  prepared on a consolidating and consolidated basis to include
     the  Parent  and  the  Company,  all  in  reasonable detail and prepared in
     accordance  with  GAAP,  together with (i) if and when available, copies of
     any  management letters prepared by the Accountants; and (ii) a certificate
     of  the  Parent's  President,  Chief  Executive  Officer or Chief Financial
     Officer  stating  that  such  financial  statements  have  been prepared in
     accordance  with  GAAP and whether or not such officer has knowledge of the
     occurrence  of  any  Event  of Default (as defined in the Note) and, if so,
     stating  in  reasonable  detail  the  facts  with  respect  thereto;

          (b) As soon as available and in any event within fifty (50) days after
     the end of each fiscal quarter of the Parent, an unaudited/internal balance
     sheet  and  statements  of  income, retained earnings and cash flows of the
     Parent  and  the  Company as at the end of and for such quarter and for the

                                       15
<PAGE>

     year  to  date  period  then  ended,  prepared  on  a  consolidating  and
     consolidated  basis  to  include  the Parent and the Company, in reasonable
     detail  and  stating  in comparative form the figures for the corresponding
     date  and  periods  in  the  previous year, all prepared in accordance with
     GAAP,  subject  to year-end adjustments and accompanied by a certificate of
     the Parent's President, Chief Executive Officer or Chief Financial Officer,
     stating (i) that such financial statements have been prepared in accordance
     with  GAAP,  subject to year-end audit adjustments, and (ii) whether or not
     such  officer  has  knowledge of the occurrence of any Event of Default (as
     defined  in  the  Note)  not  theretofore reported and remedied and, if so,
     stating  in  reasonable  detail  the  facts  with  respect  thereto;  and

          (c)  The  Company shall deliver, or cause the applicable Subsidiary of
     the  Company  to  deliver,  such  other  information as the Purchaser shall
     reasonably  request.

          6.2  Use  of  Funds. The Company shall use the proceeds of the sale of
               --------------
     the  Note and the Warrant solely for the following: (a) $33,000,000 for the
     purpose  of  acquiring  the  oil  and gas properties described in the Asset
     Purchase  Agreement  dated  as  of  April __, 2006 among the Company, Manti
     Resources, Inc., Manti Operating Company and Manti Mustang Creek, Ltd., (b)
     $1,400,000  to  fund  the  Closing  Payment,  (c)  $125,000  to  fund  the
     Purchaser's  legal  and  due  diligence expenses and (d) $5,475,000 for the
     purpose  of  future  drilling  expenses  of the Company with respect to the
     interests  acquired  by  the  Company under the Acquisition Agreement, less
     such  other amounts as may be payable by the Company to the Purchaser under
     the terms of the Proposal Letter provided by the Purchaser to the Parent in
     connection  with  the  transactions  contemplated  hereby.

          6.3  Access  to  Facilities.  Each  of  the  Company  and  each of its
               ----------------------
     Subsidiaries  will  permit  any representatives designated by the Purchaser
     (or  any  successor  of  the  Purchaser), upon reasonable notice and during
     normal  business  hours,  at  such  person's  expense  and accompanied by a
     representative  of  the  Company  or  any Subsidiary (provided that no such
     prior  notice  shall  be required to be given and no such representative of
     the  Company or any Subsidiary shall be required to accompany the Purchaser
     in the event the Purchaser believes such access is necessary to preserve or
     protect  the  Collateral  (as  defined in the Master Security Agreement) or
     following  the occurrence and during the continuance of an Event of Default
     (as  defined  in  the  Note)),  to:

          (a)  visit  and inspect any of the properties of the Company or any of
     its  Subsidiaries;

          (b)  examine the corporate and financial records of the Company or any
     of  its  Subsidiaries (unless such examination is not permitted by federal,
     state  or  local  law  or  by contract) and make copies thereof or extracts
     therefrom;  and

          (c)  discuss  the affairs, finances and accounts of the Company or any
     of  its  Subsidiaries  with  the  directors,  officers  and  independent
     accountants  of  the  Company  or  any  of  its  Subsidiaries.

                                       16
<PAGE>

Notwithstanding  the  foregoing, neither the Company nor any of its Subsidiaries
will  provide  any  material, non-public information to the Purchaser unless the
Purchaser  signs  a  confidentiality  agreement  and  otherwise  complies  with
Regulation  FD,  under  the  federal  securities  laws.

          6.4  Taxes.  Each  of  the  Company  and each of its Subsidiaries will
               -----
     promptly  pay  and  discharge, or cause to be paid and discharged, when due
     and  payable,  all  taxes,  assessments  and governmental charges or levies
     imposed  upon  the income, profits, property or business of the Company and
     its  Subsidiaries; provided, however, that any such tax, assessment, charge
     or  levy  need  not  be  paid  currently  if (i) the validity thereof shall
     currently  and  diligently  be  contested  in  good  faith  by  appropriate
     proceedings, (ii) such tax, assessment, charge or levy shall have no effect
     on the lien priority of the Purchaser in any property of the Company or any
     of  its  Subsidiaries and (iii) if the Company and/or such Subsidiary shall
     have  set  aside  on  its  books  adequate reserves with respect thereto in
     accordance  with  GAAP;  and  provided,  further,  that the Company and its
     Subsidiaries  will  pay  all  such  taxes,  assessments,  charges or levies
     forthwith  upon the commencement of proceedings to foreclose any lien which
     may  have  attached  as  security  therefor.

          6.5  Insurance. Each of the Company and its Subsidiaries will keep its
               ---------
     assets which are of an insurable character insured by financially sound and
     reputable  insurers  against  loss  or  damage by fire, explosion and other
     risks  customarily  insured  against  by  companies  in  similar  business
     similarly situated as the Company and its Subsidiaries; and the Company and
     its  Subsidiaries  will  maintain,  with  financially  sound  and reputable
     insurers,  insurance  against  other  hazards  and  risks  and liability to
     persons  and  property  to  the  extent and in the manner which the Company
     reasonably  believes  is  customary  for  companies  in  similar  business
     similarly  situated  as  the Company and its Subsidiaries and to the extent
     available  on  commercially  reasonable terms. The Company, and each of its
     Subsidiaries,  will  jointly  and severally bear the full risk of loss from
     any loss of any nature whatsoever with respect to the assets pledged to the
     Purchaser  as security for their respective obligations hereunder and under
     the  Related  Agreements.  At  the  Company's and each of its Subsidiaries'
     joint  and several cost and expense in amounts and with carriers reasonably
     acceptable  to  the  Purchaser,  each  of  the  Company  and  each  of  its
     Subsidiaries  shall (i) keep all its insurable properties and properties in
     which  it  has  an  interest  insured  against  the hazards of fire, flood,
     sprinkler leakage, those hazards covered by extended coverage insurance and
     such  other  hazards,  and for such amounts, as is customary in the case of
     companies  engaged in businesses similar to the Company's or the respective
     Subsidiary's  including  business  interruption  insurance; (ii) maintain a
     bond  in  such  amounts as is customary in the case of companies engaged in
     businesses similar to the Company's or the respective Subsidiary's insuring
     against  larceny,  embezzlement  or  other  criminal  misappropriation  of
     insured's  officers  and  employees  who  may either singly or jointly with
     others at any time have access to the assets or funds of the Company or any
     of  its  Subsidiaries  either directly or through governmental authority to
     draw upon such funds or to direct generally the disposition of such assets;
     (iii)  maintain  public  and product liability insurance against claims for
     personal injury, death or property damage suffered by others; (iv) maintain
     all  such  worker's  compensation  or  similar insurance as may be required
     under  the  laws  of  any state or jurisdiction in which the Company or the
     respective Subsidiary is engaged in business; and (v) furnish the Purchaser
     with  (x)  copies  of  all policies and evidence of the maintenance of such
     policies  at  least  thirty  (30)  days  before  any  expiration  date, (y)
     excepting  the Company's workers' compensation policy, endorsements to such

                                       17
<PAGE>

     policies  naming  the Purchaser as "co-insured" or "additional insured" and
     appropriate loss payable endorsements in form and substance satisfactory to
     the Purchaser, naming the Purchaser as loss payee, and (z) evidence that as
     to  the  Purchaser  the  insurance  coverage  shall  not  be  impaired  or
     invalidated  by any act or neglect of the Company or any Subsidiary and the
     insurer  will  provide  the Purchaser with at least thirty (30) days notice
     prior  to  cancellation. The Company and each Subsidiary shall instruct the
     insurance  carriers  that in the event of any loss thereunder, the carriers
     shall  make  payment for such loss to the Company and/or the Subsidiary and
     the  Purchaser jointly. In the event that as of the date of receipt of each
     loss  recovery  upon  any such insurance, the Purchaser has not declared an
     event  of  default  with  respect  to  this Agreement or any of the Related
     Agreements,  then  the Company and/or such Subsidiary shall be permitted to
     direct  the application of such loss recovery proceeds toward investment in
     property,  plant  and equipment that would comprise "Collateral" secured by
     the Purchaser's security interest pursuant to the Master Security Agreement
     or  such  other  security  agreement as shall be required by the Purchaser,
     with  any  surplus funds to be applied toward payment of the obligations of
     the  Company to the Purchaser. In the event that the Purchaser has properly
     declared  an  event of default with respect to this Agreement or any of the
     Related Agreements, then all loss recoveries received by the Purchaser upon
     any  such  insurance  thereafter  may  be applied to the obligations of the
     Company  hereunder  and  under the Related Agreements, in such order as the
     Purchaser may determine. Any surplus (following satisfaction of all Company
     obligations to the Purchaser) shall be paid by the Purchaser to the Company
     or  applied  as  may  be  otherwise required by law. Any deficiency thereon
     shall  be  paid  by  the  Company  or the Subsidiary, as applicable, to the
     Purchaser,  on  demand.

          6.6  Intellectual  Property.  Each  of  the  Company  and  each of its
               ----------------------
     Subsidiaries  shall maintain in full force and effect its existence, rights
     and  franchises  and  all  licenses  and  other  rights to use Intellectual
     Property  owned or possessed by it and reasonably deemed to be necessary to
     the  conduct  of  its  business.

          6.7  Properties. Each of the Company and each of its Subsidiaries will
               ----------
     keep its properties in good repair, working order and condition, reasonable
     wear  and  tear excepted, and from time to time make all needful and proper
     repairs,  renewals,  replacements,  additions and improvements thereto; and
     each  of  the Company and each of its Subsidiaries will at all times comply
     with  each provision of all leases to which it is a party or under which it
     occupies  property  if  the  breach  of  such  provision  could,  either
     individually or in the aggregate, reasonably be expected to have a Material
     Adverse  Effect.

          6.8  Confidentiality. The Company will not, and will not permit any of
               ---------------
     its  Subsidiaries  to,  disclose,  and  will  not  include  in  any  public
     announcement,  the name of the Purchaser, unless expressly agreed to by the
     Purchaser  or  unless  and  until  such  disclosure  is  required by law or
     applicable  regulation,  and  then  only to the extent of such requirement.
     Notwithstanding  the  foregoing,  the  Company may disclose the Purchaser's
     identity  and  the  terms  of this Agreement to its current and prospective
     debt  and  equity  financing  sources.

          6.9  Required  Approvals. (I) Except as set forth on Schedule 6.9, the
               -------------------
     Company, without the prior written consent of the Purchaser, shall not, and
     shall  not  permit  any  of  its  Subsidiaries  to:

                                       18
<PAGE>

          (a)  (i)  directly  or  indirectly declare or pay any dividends, other
     than dividends paid to the Company or any of its wholly-owned Subsidiaries,
     (ii)  issue any preferred stock that is mandatorily redeemable prior to the
     one year anniversary of the Maturity Date (as defined in the Note) or (iii)
     redeem  any  of  its  preferred  stock  or  other  equity  interests;

          (b)  liquidate, dissolve or effect a material reorganization (it being
     understood  that  in  no event shall the Company or any of its Subsidiaries
     dissolve,  liquidate  or  merge with any other person or entity (unless, in
     the  case  of  such  a  merger,  the  Company or, in the case of merger not
     involving  the  Company,  such  Subsidiary, as applicable, is the surviving
     entity);

          (c)  become  subject  to  (including,  without  limitation,  by way of
     amendment  to  or modification of) any agreement or instrument which by its
     terms  would (under any circumstances) restrict the Company's or any of its
     Subsidiaries,  right  to  perform  the  provisions  of  this Agreement, any
     Related  Agreement or any of the agreements contemplated hereby or thereby;

          (d)  materially  alter  or  change  the  scope  of the business of the
     Company  and  its  Subsidiaries  taken  as  a  whole;  or

          (e)  (i)  create,  incur,  assume  or suffer to exist any indebtedness
     (exclusive  of  trade  debt  and  debt  incurred to finance the purchase of
     equipment  (not  in excess of five percent (5%) of the fair market value of
     the  Company's  and its Subsidiaries' assets)) whether secured or unsecured
     other  than  (x)  the  Company's  obligations  owed  to  the Purchaser, (y)
     indebtedness  set  forth  on  Schedule  6.9 attached hereto and made a part
     hereof  and  any  refinancings  or  replacements  thereof  on terms no less
     favorable  to  the  Purchaser  than  the  indebtedness  being refinanced or
     replaced, and (z) any indebtedness incurred in connection with the purchase
     of assets (other than equipment) in the ordinary course of business, or any
     refinancings  or  replacements  thereof  on  terms no less favorable to the
     Purchaser  than  the  indebtedness being refinanced or replaced, so long as
     any lien relating thereto shall only encumber the fixed assets so purchased
     and  no other assets of the Company or any of its Subsidiaries; (ii) cancel
     any  indebtedness  owing to it in excess of $50,000 in the aggregate during
     any  12  month period; (iii) assume, guarantee, endorse or otherwise become
     directly  or  contingently liable in connection with any obligations of any
     other person or entity, except the endorsement of negotiable instruments by
     the  Company or any Subsidiary thereof for deposit or collection or similar
     transactions  in  the  ordinary  course  of  business  or  guarantees  of
     indebtedness  otherwise permitted to be outstanding pursuant to this clause
     (e);  and

     (II) The Company, without the prior written consent of the Purchaser, shall
not,  and  shall  not  permit  any of its Subsidiaries to, create or acquire any
Subsidiary  after  the  date hereof unless (i) such Subsidiary is a wholly-owned
Subsidiary of the Company and (ii) such Subsidiary becomes a party to the Master
Security  Agreement,  the  Stock  Pledge  Agreement  and the Subsidiary Guaranty
(either by executing a counterpart thereof or an assumption or joinder agreement

                                       19
<PAGE>

in respect thereof) and, to the extent required by the Purchaser, satisfies each
condition  of  this  Agreement  and the Related Agreements as if such Subsidiary
were  a  Subsidiary  on  the  Closing  Date.

          6.10  Opinion.  On  the  Closing Date, the Company will deliver to the
                -------
     Purchaser  an  opinion  acceptable  to  the  Purchaser  from  the Company's
     external  legal  counsel  in the form of Exhibit C hereto. The Company will
                                              ---------
     provide,  at the Company's expense, such other legal opinions in the future
     as  are deemed reasonably necessary by the Purchaser (and acceptable to the
     Purchaser)  in  connection  with  the  exercise  of  the  Warrant.

          6.11  Margin Stock. The Company will not permit any of the proceeds of
                ------------
     the  Note or the Warrant to be used directly or indirectly to "purchase" or
     "carry"  "margin  stock" or to repay indebtedness incurred to "purchase" or
     "carry" "margin stock" within the respective meanings of each of the quoted
     terms  under  Regulation U of the Board of Governors of the Federal Reserve
     System  as  now  and  from  time  to  time  hereafter  in  effect.

          6.12  Financing  Right  of  First  Refusal.
                ------------------------------------

          (a)  The  Company  hereby  grants  to  the  Purchaser a right of first
     refusal to provide any Additional Financing (as defined below) to be issued
     by  the  Company  and/or  any of its Subsidiaries, subject to the following
     terms  and  conditions.  From  and  after  the  date  hereof,  prior to the
     incurrence  of  any  additional indebtedness and/or the sale or issuance of
     any  equity  interests  of  the  Company  or  any  of  its Subsidiaries (an
     "Additional  Financing"), the Company and/or any Subsidiary of the Company,
     as  the  case  may be, shall notify the Purchaser of its intention to enter
     into such Additional Financing. In connection therewith, the Company and/or
     the  applicable Subsidiary thereof shall submit a fully executed term sheet
     (a  "Proposed  Term  Sheet")  to  the  Purchaser  setting  forth the terms,
     conditions  and pricing of any such Additional Financing (such financing to
     be  negotiated  on  "arm's  length"  terms  and  the  terms  thereof  to be
     negotiated in good faith) proposed to be entered into by the Company and/or
     such  Subsidiary.  The  Purchaser  shall  have  the  right,  but  not  the
     obligation,  to  deliver  its  own proposed term sheet (the "Purchaser Term
     Sheet")  setting  forth  the  terms and conditions upon which the Purchaser
     would be willing to provide such Additional Financing to the Company and/or
     such  Subsidiary.  The  Purchaser  Term  Sheet  shall contain terms no less
     favorable  to  the  Company  and/or  such Subsidiary than those outlined in
     Proposed  Term Sheet. The Purchaser shall deliver such Purchaser Term Sheet
     within  ten  calendar  days of receipt of each such Proposed Term Sheet. If
     the provisions of the Purchaser Term Sheet are at least as favorable to the
     Company  and/or  such  Subsidiary, as the case may be, as the provisions of
     the  Proposed  Term  Sheet,  the Company and/or such Subsidiary shall enter
     into  and  consummate  the Additional Financing transaction outlined in the
     Purchaser  Term  Sheet.

          (b)  The  Company  will  not, and will not permit its Subsidiaries to,
     agree, directly or indirectly, to any restriction with any person or entity
     which  limits  the  ability  of  the  Purchaser to consummate an Additional
     Financing  with  the  Company  or  any  of  its  Subsidiaries.

                                       20
<PAGE>

          6.13 Authorization and Reservation of Shares. The Company shall at all
               ---------------------------------------
     times  have authorized and reserved a sufficient number of shares of Common
     Stock  to  provide  for  the  exercise  of  the  Warrant.

          6.14  Summaries;Reports.  The  Company shall deliver to the Purchaser,
                -----------------
     within  two (2) business days following the end of each month, summaries of
     the  Company's  lease  operating  expenses  and  production relating to the
     Company's  oil  and  gas  properties  as  and for the immediately preceding
     month.  The Company shall deliver to the Purchaser, within two (2) business
     days  following the end of each October and April, or at such other time as
     the Purchaser shall request, an economic reserve report with respect to the
     Company  prepared  by  R.A.  Lenser  or  such other registered professional
     engineer  acceptable  to  the  Purchaser.

     7.  Covenants of the Purchaser. The Purchaser covenants and agrees with the
         --------------------------
Company  as  follows:

          7.1  Confidentiality.  The  Purchaser  will not disclose, and will not
               ---------------
     include  in  any  public  announcement,  the  name  of  the Company, unless
     expressly  agreed  to by the Company or unless and until such disclosure is
     required  by  law  or applicable regulation, and then only to the extent of
     such  requirement.

          7.2  Limitation  on  Acquisition  of  Common  Stock  of  the  Company.
               ----------------------------------------------------------------
     Notwithstanding  anything  to the contrary contained in this Agreement, any
     Related  Agreement or any document, instrument or agreement entered into in
     connection  with  any  other  transactions  between  the  Purchaser and the
     Company,  the  Purchaser  may  not acquire stock in the Company (including,
     without  limitation,  pursuant  to a contract to purchase, by exercising an
     option  or  Warrant,  by  converting  any  other security or instrument, by
     acquiring  or  exercising  any  other  right to acquire, shares of stock or
     other  security  convertible  into  shares  of  stock  in  the  Company, or
     otherwise,  and  such  contracts,  options,  Warrants,  conversion or other
     rights  shall  not  be enforceable or exercisable) to the extent such stock
     acquisition  would  cause  any  interest  (including  any  original  issue
     discount)  payable  by  the  Company  to  the  Purchaser  not to qualify as
     "portfolio  interest"  within the meaning of Section 881(c)(2) of the Code,
     by  reason  of  Section  881(c)(3)  of  the  Code,  taking into account the
     constructive  ownership  rules  under Section 871(h)(3)(C) of the Code (the
     "Stock  Acquisition  Limitation").  The  Stock Acquisition Limitation shall
     automatically  become  null and void without any notice to the Company upon
     the  existence  of  an  Event  of  Default  (as  defined  in  the  Note).

     8.  Covenants  of  the Company and the Purchaser Regarding Indemnification.
         ----------------------------------------------------------------------

          8.1  Company  Indemnification.  The  Company agrees to indemnify, hold
               ------------------------
     harmless,  reimburse  and  defend  the  Purchaser,  each of the Purchaser's
     officers,  directors,  agents,  affiliates,  control persons, and principal
     shareholders,  against  all  claims,  costs,  expenses,  liabilities,
     obligations,  losses  or  damages  (including reasonable legal fees) of any
     nature,  incurred  by or imposed upon the Purchaser which result, arise out
     of  or  are  based upon: (i) any misrepresentation by the Company or any of
     its  Subsidiaries  or  breach  of any warranty by the Company or any of its
     Subsidiaries  in  this  Agreement,  any  other  Related Agreement or in any
     exhibits  or  schedules  attached  hereto or thereto; or (ii) any breach or
     default  in  performance  by  Company  or  any  of  its Subsidiaries of any
     covenant  or  undertaking  to  be  performed  by  Company  or  any  of  its

                                       21
<PAGE>

     Subsidiaries  hereunder,  under  any  other  Related Agreement or any other
     agreement  entered  into  by the Company and/or any of its Subsidiaries and
     the Purchaser relating hereto or thereto; or (iii) (a) the violation of any
     local, state or federal law, rule or regulation pertaining to environmental
     regulation,  contamination or cleanup (collectively, "Environmental Laws"),
     including  without  limitation,  the  Comprehensive Environmental Response,
     Compensation  and  Liability Act of 1980 (42 U.S.C. 9601 et seq. and 40 CFR
     302.1  et  seq.),  the  Resource  Conservation and Recovery Act of 1976 (42
     U.S.C.  6901  et  seq.), the Federal Water Pollution Control Act (33 U.S.C.
     1251  et  seq.,  and  40  CFR  116.1  et  seq.),  the  Hazardous  Materials
     Transportation Act (49 U.S.C. 1801 et seq.) and the regulations promulgated
     pursuant  to  said  laws,  all  as amended and relating to or affecting the
     Company  and/or  any  Subsidiary  and the Company's and/or any Subsidiary's
     properties, whether or not caused by or within the control of the Purchaser
     and/or  (b)  the  presence,  release  or threat of release of any Hazardous
     Materials  (including,  without  limitation,  asbestos,  polychlorinated
     biphenyls, petroleum products, flammable explosives, radioactive materials,
     infectious  substances  or  raw  materials  which  include  hazardous
     constituents) on, in, under or affecting all or any portion of any property
     of  the  Company and/or any Subsidiary or any surrounding areas, regardless
     of  whether  or  not  caused  by  or  within  the control of the Purchaser.

          8.2  Purchaser's  Indemnification.  The Purchaser agrees to indemnify,
               ----------------------------
     hold  harmless,  reimburse and defend the Company and each of the Company's
     officers,  directors,  agents,  affiliates,  control  persons and principal
     shareholders,  at  all  times  against  any  claims,  costs,  expenses,
     liabilities,  obligations,  losses  or  damages (including reasonable legal
     fees)  of any nature, incurred by or imposed upon the Company which result,
     arise  out of or are based upon: (i) any misrepresentation by the Purchaser
     or  breach  of  any  warranty  by the Purchaser in this Agreement or in any
     exhibits or schedules attached hereto or any Related Agreement; or (ii) any
     breach  or  default  in  performance  by  the  Purchaser of any covenant or
     undertaking  to  be  performed  by  the  Purchaser  hereunder, or any other
     agreement  entered  into  by the Company and the Purchaser relating hereto.

     9.  Miscellaneous.
         -------------

          9.1  Governing  Law,  Jurisdiction  and  Waiver  of  Jury  Trial.
               -----------------------------------------------------------

          (a)  THIS AGREEMENT AND THE OTHER RELATED AGREEMENTS SHALL BE GOVERNED
     BY  AND  CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
     NEW  YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT
     REGARD  TO  PRINCIPLES  OF  CONFLICTS  OF  LAWS.

          (b)  THE  COMPANY HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL
     COURTS  LOCATED  IN  THE  COUNTY  OF NEW YORK, STATE OF NEW YORK SHALL HAVE
     EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN
     THE  COMPANY,  ON  THE  ONE  HAND,  AND  THE  PURCHASER, ON THE OTHER HAND,
     PERTAINING  TO  THIS  AGREEMENT  OR ANY OF THE RELATED AGREEMENTS OR TO ANY
     MATTER  ARISING  OUT  OF  OR  RELATED TO THIS AGREEMENT OR ANY OF THE OTHER
     RELATED  AGREEMENTS;  PROVIDED,  THAT  THE  PURCHASER  AND  THE  COMPANY

                                       22
<PAGE>

     ACKNOWLEDGE  THAT  ANY  APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A
     COURT  LOCATED  OUTSIDE  OF  THE COUNTY OF NEW YORK, STATE OF NEW YORK; AND
     FURTHER  PROVIDED,  THAT,  NOTHING  IN  THIS  AGREEMENT  SHALL BE DEEMED OR
     OPERATE  TO PRECLUDE THE PURCHASER FROM BRINGING SUIT OR TAKING OTHER LEGAL
     ACTION  IN ANY OTHER JURISDICTION TO COLLECT THE OBLIGATIONS, TO REALIZE ON
     THE  COLLATERAL  (AS DEFINED IN THE MASTER SECURITY AGREEMENT) OR ANY OTHER
     SECURITY FOR THE OBLIGATIONS (AS DEFINED IN THE MASTER SECURITY AGREEMENT),
     OR  TO  ENFORCE  A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE PURCHASER.
     THE  COMPANY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION
     IN  ANY  ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND THE COMPANY HEREBY
     WAIVES  ANY  OBJECTION  THAT  IT  MAY  HAVE  BASED  UPON  LACK  OF PERSONAL
     JURISDICTION,  IMPROPER  VENUE  OR FORUM NON CONVENIENS. THE COMPANY HEREBY
     WAIVES  PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED
     IN  ANY  SUCH  ACTION  OR  SUIT  AND  AGREES  THAT SERVICE OF SUCH SUMMONS,
     COMPLAINT  AND  OTHER  PROCESS  MAY BE MADE BY REGISTERED OR CERTIFIED MAIL
     ADDRESSED  TO  THE COMPANY AT THE ADDRESS SET FORTH IN SECTION 9.9 AND THAT
     SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF THE COMPANY'S
     ACTUAL  RECEIPT  THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS,
     PROPER  POSTAGE  PREPAID.

          (c)  THE  PARTIES  DESIRE  THAT  THEIR DISPUTES BE RESOLVED BY A JUDGE
     APPLYING  SUCH  APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION
     OF  THE  BENEFITS  OF  THE  JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES
     HERETO WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING
     BROUGHT  TO  RESOLVE  ANY  DISPUTE,  WHETHER  ARISING IN CONTRACT, TORT, OR
     OTHERWISE  BETWEEN  THE  PURCHASER  AND/OR  THE  COMPANY  ARISING  OUT  OF,
     CONNECTED  WITH,  RELATED  OR  INCIDENTAL  TO  THE RELATIONSHIP ESTABLISHED
     BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT, ANY OTHER RELATED AGREEMENT
     OR  THE  TRANSACTIONS  RELATED  HERETO  OR  THERETO.

          9.2  Severability.  Wherever possible each provision of this Agreement
               ------------
     and  the  Related  Agreements  shall be interpreted in such manner as to be
     effective  and  valid  under  applicable  law, but if any provision of this
     Agreement  or  any  Related  Agreement shall be prohibited by or invalid or
     illegal  under  applicable  law  such provision shall be ineffective to the
     extent  of  such  prohibition  or  invalidity  or  illegality,  without
     invalidating  the  remainder  of such provision or the remaining provisions
     thereof  which  shall  not  in  any  way  be  affected or impaired thereby.

          9.3  Survival.  The  representations,  warranties,  covenants  and
               --------
     agreements  made  herein  shall  survive  any  investigation  made  by  the
     Purchaser  and  the  closing of the transactions contemplated hereby to the
     extent  provided therein. All statements as to factual matters contained in

                                       23
<PAGE>

     any  certificate  or  other  instrument  delivered  by  or on behalf of the
     Company  pursuant  hereto  in connection with the transactions contemplated
     hereby  shall be deemed to be representations and warranties by the Company
     hereunder  solely  as  of  the  date of such certificate or instrument. All
     indemnities  set  forth  herein  shall  survive the execution, delivery and
     termination  of this Agreement and the Note and the making and repayment of
     the  obligations  arising  hereunder,  under  the  Note and under the other
     Related  Agreements.

          9.4  Successors.  Except  as  otherwise expressly provided herein, the
               ----------
     provisions  hereof  shall inure to the benefit of, and be binding upon, the
     successors,  heirs, executors and administrators of the parties hereto. The
     Purchaser  shall  not  be permitted to assign its rights hereunder or under
     any  Related  Agreement  to  a competitor of the Company unless an Event of
     Default  (as  defined  in  the  Note)  has  occurred  and  is  continuing.

          9.5  Entire  Agreement;  Maximum Interest. This Agreement, the Related
               ------------------------------------
     Agreements,  the  exhibits  and  schedules hereto and thereto and the other
     documents  delivered  pursuant  hereto  constitute  the  full  and  entire
     understanding and agreement between the parties with regard to the subjects
     hereof  and no party shall be liable or bound to any other in any manner by
     any  representations,  warranties,  covenants  and  agreements  except  as
     specifically  set  forth  herein  and  therein.  Nothing  contained in this
     Agreement,  any  Related Agreement or in any document referred to herein or
     delivered  in  connection  herewith shall be deemed to establish or require
     the payment of a rate of interest or other charges in excess of the maximum
     rate permitted by applicable law. In the event that the rate of interest or
     dividends required to be paid or other charges hereunder exceed the maximum
     rate permitted by such law, any payments in excess of such maximum shall be
     credited  against  amounts  owed  by  the Company to the Purchaser and thus
     refunded  to  the  Company.

          9.6  Amendment  and  Waiver.
               ----------------------

          (a)  This  Agreement  may be amended or modified only upon the written
     consent  of  the  Company  and  the  Purchaser.

          (b)  The  obligations  of  the Company and the rights of the Purchaser
     under  this  Agreement  may  be waived only with the written consent of the
     Purchaser.

          (c)  The  obligations  of  the Purchaser and the rights of the Company
     under  this  Agreement  may  be waived only with the written consent of the
     Company.

     9.7 Delays or Omissions. It is agreed that no delay or omission to exercise
         -------------------
any  right,  power  or remedy accruing to any party, upon any breach, default or
noncompliance  by  another party under this Agreement or the Related Agreements,
shall  impair any such right, power or remedy, nor shall it be construed to be a
waiver  of  any  such  breach,  default  or  noncompliance,  or any acquiescence
therein,  or  of  or  in any similar breach, default or noncompliance thereafter
occurring.  All remedies, either under this Agreement or the Related Agreements,
by  law  or  otherwise  afforded  to  any  party,  shall  be  cumulative and not
alternative.

     9.8  Notices.  All  notices  required  or  permitted  hereunder shall be in
          -------
writing  and  shall  be  deemed  effectively  given:

                                       24
<PAGE>

          (a)  upon  personal  delivery  to  the  party  to  be  notified;

          (b)  when  sent  by confirmed facsimile if sent during normal business
     hours  of  the  recipient,  if  not,  then  on  the  next  business  day;

          (c)  three  (3)  business days after having been sent by registered or
     certified  mail,  return  receipt  requested,  postage  prepaid;  or

          (d)  one  (1) day after deposit with a nationally recognized overnight
     courier,  specifying  next  day  delivery,  with  written  verification  of
     receipt.

All  communications  shall  be  sent  as  follows:

        If to the Company, to:    Gulf  Coast  Oil  Corporation
                                  5851  San  Felipe,  Suite  775
                                  Houston,  TX  77057
                                  Attention:  Chief Financial Officer
                                  Facsimile:  713-266-4358

                                  with a copy to:

                                  David M. Loev, Esq.
                                  Attorney at Law
                                  2777 Allen Parkway
                                  Suite 1000
                                  Houston, Texas 77019
                                  Attention:  David Loev, Esq.
                                  Facsimile:  713-524-4122

        If to the Purchaser, to:  Laurus Master Fund, Ltd.
                                  c/o M&C Corporate Services Limited
                                  P.O.  Box 309 GT
                                  Ugland House
                                  George Town
                                  South Church Street
                                  Grand Cayman, Cayman Islands
                                  Facsimile:  345-949-8080

                                  with a copy to:

                                  John E.  Tucker, Esq.
                                  825 Third Avenue 14th Floor
                                  New York, New York 10022
                                  Facsimile:  212-541-4434

                                       25
<PAGE>

                                  and to:

                                  Scott J. Giordano, Esq.
                                  Loeb & Loeb LLP
                                  345 Park Avenue
                                  New York, New York 10154
                                  Facsimile:  212-407-4990

or  at  such  other  address  as  the  Company or the Purchaser may designate by
written  notice  to  the  other  parties  hereto  given  in accordance herewith.

          9.9  Attorneys'  Fees.  In  the  event  that  any  suit  or  action is
               ----------------
     instituted  to  enforce  any  provision  in  this  Agreement or any Related
     Agreement,  the  prevailing  party  in  such  dispute  shall be entitled to
     recover from the losing party all fees, costs and expenses of enforcing any
     right  of  such  prevailing  party  under or with respect to this Agreement
     and/or  such  Related  Agreement,  including,  without  limitation,  such
     reasonable  fees  and  expenses  of  attorneys and accountants, which shall
     include,  without  limitation,  all  fees,  costs  and expenses of appeals.

          9.10  Titles and Subtitles. The titles of the sections and subsections
                --------------------
     of  this  Agreement are for convenience of reference only and are not to be
     considered  in  construing  this  Agreement.

          9.11  Facsimile  Signatures;  Counterparts.  This  Agreement  may  be
                ------------------------------------
     executed by facsimile signatures and in any number of counterparts, each of
     which  shall be an original, but all of which together shall constitute one
     agreement.

          9.12  Broker's Fees. Except as set forth on Schedule 9.12 hereof, each
                -------------
     party  hereto  represents  and  warrants  that no agent, broker, investment
     banker,  person  or firm acting on behalf of or under the authority of such
     party  hereto is or will be entitled to any broker's or finder's fee or any
     other commission directly or indirectly in connection with the transactions
     contemplated  herein.  Each  party  hereto further agrees to indemnify each
     other party for any claims, losses or expenses incurred by such other party
     as  a  result  of  the  representation  in  this Section 9.12 being untrue.

          9.13  Construction.  Each  party  acknowledges  that its legal counsel
                ------------
     participated  in  the  preparation  of  this  Agreement  and  the  Related
     Agreements  and,  therefore,  stipulates that the rule of construction that
     ambiguities  are  to  be  resolved  against the drafting party shall not be
     applied in the interpretation of this Agreement or any Related Agreement to
     favor  any  party  against  the  other.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                       26
<PAGE>

     IN  WITNESS  WHEREOF,  the  parties  hereto  have  executed  the SECURITIES
PURCHASE  AGREEMENT  as  of  the  date  set forth in the first paragraph hereof.

COMPANY:                                   PURCHASER:

GULF  COAST  OIL  CORPORATION              LAURUS  MASTER  FUND,  LTD.

By: /s/ Edward R. DeStefano                By: /s/ Eugene Grin
   ---------------------------                ------------------------------
Name:  Edward R. DeStefano                 Name: Eugene Grin
     -------------------------                  ----------------------------
Title: President                           Title: Director
      ------------------------                   ---------------------------

                                       27
<PAGE>

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