Document:

PROSPECT GENERATION AGREEMENT
                          -----------------------------

     This  Prospect Generation Agreement ("Agreement") is executed  as of May 1,
2004,  ("Effective  Date")  between PETROSEARCH CORPORATION, A TEXAS CORPORATION
("Petrosearch")  and  BARBEE  EXPLORATION,  INC.  ("Barbee  Group").

                                    RECITALS:

     A.  Barbee Group, which is an organization comprised of several experienced
geologists,  has  identified  to  Petrosearch  multiple, potentially productive,
geologic  prospects  within  the  area  known  as  the Anadarko Basin of Western
Oklahoma,  Eastern  Colorado  and  Northern Texas, each of which is projected to
contain  multiple  drillsites  and  geologic  zones  of interest, subject to the
availability  of  the  underlying  leases  which  are  not  currently  in  place
(collectively,  including  future  identified prospects, being herein called the
"Prospects").

     B. Barbee Group has offered to Petrosearch for its exploration subsidiaries
and  Petrosearch  desires  to  accept,  the  first and prior exclusive right and
opportunity  to  acquire  any  and  all Prospects generated by Barbee Group, and
Petrosearch and Barbee Group desire to enter into this Agreement to stipulate as
to  the  terms  and  conditions  of  the  strategic alliance, including specific
stipulations  regarding  the  initial  ten  (10)  Prospects.

                               TERMS OF AGREEMENT:

     NOW,  THEREFORE, in consideration of the mutual covenants contained herein,
Petrosearch  and  Barbee  Group  agree  as  follows:

     1.     FUNDING  OF  INITIAL  TEN (10) PROSPECTS.   Petrosearch shall pay to
            -----------------------------------------
Barbee  Group, upon execution hereof, the sum TWENTY THOUSAND AND NO/100 DOLLARS
($20,000.00)  [the "Initial Capital Costs Payment"], which shall be allocated to
the  Prospects delivered to and accepted by Petrosearch in the month of May as a
portion  of  the  acquisition  costs related to each such Prospect.  The Initial
Capital  Costs Payment shall be considered non-refundable and shall be allocated
to the Prospects delivered and accepted by Petrosearch in the sole discretion of
Petrosearch.  As  to each accepted Prospect, Petrosearch shall thereafter design
and  fund, in its sole discretion, a leasing program with area land personnel in
order  to  secure  the  oil  and  gas  leases necessary to complete the Prospect
acreage,  subject  to  lease availability.   Commencing with the second month of
this  Agreement  and  continuing  for each additional month of the Term (defined
below),  Petrosearch shall pay to Barbee Group a like cash payment of $20,000.00
which  shall  be  allocated as an advance Capital Costs Payment  to be allocated
among  the  additional  prospects  delivered  in  that  month.

     2.     ADDITIONAL  CONSIDERATION  FOR PURCHASE-COMMON STOCK.  As additional
            -----------------------------------------------------
consideration  for  the capital costs of the Prospects delivered by Barbee Group
to  Petrosearch,  Petrosearch  shall  assign and deliver to Barbee Group, or its
identified  designees,  ONE HUNDRED THOUSAND shares of Petrosearch Common Stock,
par  value $0.001.  The shares shall be restricted shares in accordance with the
provisions  of  SEC  Rule  144(a)(3)  and  the certificate evidencing same shall
contain  a  customary  Rule  144  legend.  The  shares shall be allocated to the
initial  ten  (10)  Prospects  as  a part of the non refundable capital costs of
acquisition.  Petrosearch  and  Barbee Group further stipulate and agree that no
warranties  and  representations  are  made  by  Petrosearch  or  its  officers,
directors  or  representatives  regarding  the  current  or future value of such
shares  of  Common  Stock.

     3.     ADDITIONAL  CONSIDERATION  FOR PURCHASE-OVERRIDING ROYALTY INTEREST.
            --------------------------------------------------------------------
As  additional  consideration  for  the  Prospects  delivered by Barbee Group to
Petrosearch,  Petrosearch  shall  assign  to  Barbee  Group  or  its  identified
designees  an  overriding  royalty  in  each  oil  and  gas  lease  acquired  by
Petrosearch  in  the identified Prospect an overriding royalty interest equal to

<PAGE>
five  and  one quarter percent of one hundred percent (5.25% of 100%) of the oil
and  gas produced and saved from the lands covered by the leases, all subject to
proportionate reduction for leases covering less than one hundred percent (100%)
of  the  underlying  mineral  fee  simple  interests.  Such assignments shall be
delivered to Barbee Group or designees promptly after acquisition of the oil and
gas  leases  by  Petrosearch.  Barbee Group shall bear the costs associated with
recordation  of the overriding royalty assignments. A form of Overriding royalty
assignment  is  attached  hereto  as  Exhibit  A.

     4.     TERM  OF AGREEMENT.  This Agreement shall continue for a term of six
            -------------------
(6)  months  from  the  Effective  Date,  but shall automatically renew for like
six-month  periods  thereafter  unless  either party notifies the other party in
writing  of  its  election  to  terminate this Agreement at least six (6) months
prior  to  the  end  of  the  particular  period  in  which the notice is given.

     5.     REVIEW  PERIOD, RIGHT TO REJECT AND PRESERVATION OF CONFIDENTIALITY.
            --------------------------------------------------------------------
Petrosearch shall have up to sixty (60) days (the "Review Period") to review the
Prospect  information provided by Barbee Group in order to determine whether the
Prospect is suitable for its purposes. Petrosearch agrees to advise Barbee Group
in  writing  of  its  rejection  or  acceptance  of a Prospect within the Review
Period.  If  a  Prospect  is  rejected,  Barbee Group may thereafter present the
Prospect  to  third  parties  for  consideration.  In  order  to  preserve
confidentiality  and  to  prevent competition for leases, Barbee Group shall not
present  its  Prospects to any third parties for consideration during the Review
Period  or after acceptance of a Prospect by Petrosearch. Petrosearch and Barbee
Group  agree that this covenant of exclusivity and confidentiality is a material
consideration  for  the  cash, shares and overriding royalty consideration to be
provided  to  Barbee  Group  under this Agreement, and, in connection therewith,
Barbee  Group  shall  cause  its  personnel  to  maintain confidentiality and to
refrain  from  participating in or assisting any third party from competing with
Petrosearch  in  the  area  of  an accepted Prospect. Barbee Group shall execute
contemporaneously  with  this  Agreement  the  form  of  Confidentiality  and
Non-Circumvention  Agreement  attached hereto as Exhibit "B" in order to further
these  covenants  and  in  order  to  allow the free flow of information between
Petrosearch  and  Barbee  Group  regarding  development of the Prospects without
violating  Federal Securities guidelines regarding public disclosures, including
the  guidelines  set  forth  in  Regulation  FD.

     6.     RIGHT  TO PARTICIPATE IN DEVELOPMENT.  Future development operations
            ------------------------------------
on  the  Prospects  shall  be  conducted  by  Purchaser's affiliate, Petrosearch
Operating  Company,  L.L.C.  for  the  benefits  of  Petrosearch's  various
subsidiaries.  At  Barbee Group's election, Barbee Group shall have the right to
participate,  at cost and without promotion, as a non-operating working interest
owner  of  up  to  five  percent  (5%)  interest  (proportionately reduced where
Petrosearch  does  not own 100% of the working interest in the proposed well) in
each  well  to  be drilled on a Prospect generated by Barbee Group.  Once Barbee
Group  elects  a percentage participation level for the first well in a Prospect
(e.g.  3%,  4%, 5%, etc.), that percentage level shall be the maximum percentage
 ----
(but  not  the  minimum  percentage)  made  available  to  Barbee  Group for the
additional  wells  in  that  Prospect  in  order  to  facilitate  Petrosearch's
responsibilities  to  other  participants  in  the  Prospect.  Petrosearch shall
propose an AFE (Authority For Expenditures) to Barbee Group as to each such well
and  Barbee  Group shall have thirty (30) days within which to pay, in cash, the
dry  hole  costs  reflected.  Each participant, including Barbee Group, shall be
given  a  15-day  cash  call  as  to completion attempts and failure to fund the
completion  cost  cash call within the 15-day period shall be deemed an election
not  to  participate  in  completion.  The  parties shall enter into an A.A.P.L.
Model  Form  Operating  Agreement  (1989) providing for operation by Petrosearch
Operating  Company,  L.L.C.  and containing "drill or drop" provisions governing
cash  calls  (i.e.  failure  to  fund  will result in the participant forfeiting
further  participation  in  the  particular  well  and  all future wells in that
Prospect).   Barbee  Group shall have access, to all physical facilities (at its
sole  risk),  leases,  title work,  and Prospect records, including the right to
audit  same  at  Barbee  Group's  expense.

<PAGE>
     7.     TIME  IS  OF  ESSENCE/ATTORNEYS  FEES.  Time  is of the essence with
            -------------------------------------
respect to this Agreement and each party hereto shall have the right to specific
performance  as  to  the obligations set forth herein.  In the event that either
party  seeks enforcement of this Agreement in any legal or equitable proceeding,
the  prevailing  party  in such proceeding shall be entitled to recover from the
other  party  all  expenses attributable to such proceeding, including interest,
court  costs  and  attorneys  fees.

     8.     ENTIRE  AGREEMENT.   This  Agreement,  the  documents to be executed
            -----------------
hereunder,  and  each  Exhibit  attached  hereto constitute the entire agreement
between  the  parties  pertaining to the subject matter hereof and supersede all
prior  agreements, understandings, negotiations and discussions, whether oral or
written,  of  the  parties  pertaining  to  the  subject  matter  hereof.

     9.     WARRANTIES.  There  are  no  warranties,  representations  or  other
            ----------
agreements  between  the  parties  in  connection with the subject matter hereof
except  as  specifically  set  forth  herein  or in documents delivered pursuant
hereto.

     10.     AMENDMENTS.  No  supplement,  amendment,  alteration, modification,
             ----------
waiver  or  termination  of  this  Agreement shall be binding unless executed in
writing  by  the  parties  hereto.

     11.     WAIVER.  No  waiver of any of the provisions of this Agreement will
             ------
be  deemed  or shall constitute a waiver of any other provisions hereof (whether
or  not  similar),  nor  shall such waiver constitute a continuing waiver unless
otherwise  expressly  provided  in  writing.

     12.     CAPTIONS.  The  captions in this Agreement are for convenience only
             --------
and  may  not  be  considered  a  part  of  or  as affecting the construction or
interpretation  of  any  provision  of  this  Agreement.

     13.     ASSIGNABILITY.  Purchaser  may  not  assign  any  of  its  rights
             -------------
hereunder  without Seller's written consent.  This Agreement binds and inures to
the  benefit  of  the  Parties  hereto  and  their respective heirs, successors,
representatives,  assigns  and  transferees.

     14.     APPLICABLE LAW.  THIS AGREEMENT, OTHER DOCUMENTS DELIVERED PURSUANT
             --------------
HERETO  AND  THE  LEGAL  RELATIONS  BETWEEN  THE  PARTIES  SHALL BE GOVERNED AND
CONSTRUED  IN  ACCORDANCE  WITH THE LAWS OF THE STATE OF TEXAS.  THE VALIDITY OF
THE  VARIOUS  CONVEYANCES AFFECTING THE TITLE TO REAL PROPERTY SHALL BE GOVERNED
BY  AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE WHERE THE PROPERTY IS
LOCATED.  THIS AGREEMENT IS PERFORMABLE IN AND VENUE SHALL LIE IN HARRIS COUNTY,
TEXAS  TO  THE  EXCLUSION  OF  OTHER  VENUES.

     15.     NOTICES.  Any  notice, communication, request, instruction or other
             -------
document  required or permitted hereunder shall be given in writing by certified
mail,  return  receipt  requested,  postage  prepaid,  or  by overnight courier,
prepaid  telegram,  or  personal  delivery  to following address, unless written
notice  of  an  alternate address is delivered to the sending party prior to its
dispatch  of  the  notice  or  communication:

     If  to  Barbee  Group:        Mr.  Bill  J.  Barbee
                                   301  S.  Polk,  Suite  450  South
                                   Amarillo,  Texas  79101
                                   Fax:  (806)  373-9562

     If  to  Petrosearch:          Petrosearch  Corporation
                                   4801 Woodway Drive
                                   Suite 300E

<PAGE>
                                   Houston, Texas  77056
                                   FAX:  (530) 326-2930

All notices will be deemed to have been given as of the date of receipt.

     16.     FEES  AND  TRANSACTION  EXPENSES.  Except  as  otherwise  provided
             --------------------------------
herein,  each  party shall be solely responsible for all expenses incurred by it
in  connection  with  this  transaction, including, without limitation, fees and
expenses  of  its  own counsel and accountants, and shall not be entitled to any
reimbursement  therefor  from  any  other party hereto.  The Parties warrant and
represent  to  each other that no brokerage commission shall become due or owing
to  any  party as a result of this transaction other than the overriding royalty
interest  payable  to  J.  B.  Cox  by  Petrosearch  under a separate Consulting
Agreement  of  even  date.

     17.     BINDING  ARBITRATION.  ANY  CONTROVERSY  OR CLAIM ARISING OUT OF OR
             --------------------
RELATING  TO  THIS  AGREEMENT,  OR  THE  CONSTRUCTION, INTERPRETATION OR ALLEGED
BREACH  THEREOF,  SHALL  BE SETTLED BY FINAL AND BINDING ARBITRATION IN HOUSTON,
TEXAS  IN  ACCORDANCE  WITH  THE  COMMERCIAL  ARBITRATION RULES ("RULES") OF THE
AMERICAN  ARBITRATION ASSOCIATION IN EFFECT AT THE TIME THE CONTROVERSY OR CLAIM
IS  SUBMITTED  TO  ARBITRATION, PROVIDED, HOWEVER, THAT THE PARTIES MAY MUTUALLY
AGREE  TO  USE  AN  ARBITRATION  BODY  OTHER  THAN  THE  AMERICAN  ARBITRATION
ASSOCIATION.  THE ARBITRATOR SHALL HAVE JURISDICTION TO DETERMINE ANY SUCH CLAIM
AND  MAY GRANT ANY RELIEF OTHER THAN PUNITIVE OR EXEMPLARY DAMAGES AUTHORIZED BY
LAW  FOR SUCH CLAIM, INCLUDING SPECIFIC PERFORMANCE.  ANY SUCH ARBITRATION SHALL
BE  CONCLUDED WITHIN 120 DAYS OF INITIATION OF THE ARBITRATION.  ANY CONTROVERSY
OR CLAIM WHICH IS THE SUBJECT OF ARBITRATION SHALL BE DEEMED WAIVED AND SHALL BE
FOREVER  BARRED IF ARBITRATION IS NOT INITIATED BY THE AGGRIEVED PARTY BY MAKING
DEMAND  FOR  ARBITRATION  AND  TENDERING  THE  APPLICABLE  AMERICAN  ARBITRATION
ASSOCIATION  FILING  FEE TO THE AMERICAN ARBITRATION ASSOCIATION WITHIN 6-MONTHS
OF  THE  DATE  THE  CONTROVERSY OR CLAIM FIRST ARISES.  IN ANY ARBITRATION UNDER
THIS  PARAGRAPH,  ANY AND ALL RULES OF DISCOVERY SET FORTH IN THE TEXAS RULES OF
CIVIL  PROCEDURE  SHALL BE APPLICABLE.  EACH PARTY TO THE ARBITRATION SHALL BEAR
THE  INITIAL  FILING FEES AND CHARGES REQUIRED BY THE ARBITRATION ADMINISTRATOR,
PROVIDED,  HOWEVER,  THAT  THE  ARBITRATOR SHALL AWARD REIMBURSEMENT OF ALL SUCH
COSTS  AND  FEES TO THE PREVAILING PARTY AS A PART OF ITS AWARD.  THIS PARAGRAPH
SHALL  LIKEWISE BE SPECIFICALLY ENFORCEABLE IN A COURT OF COMPETENT JURISDICTION
SHOULD  THE  PARTY  NOT  DEMANDING ARBITRATION REFUSE TO PARTICIPATE IN OR FULLY
COOPERATE  WITH  THE
ARBITRATION  PROCESS.

     18.     COUNTERPARTS/FACSIMILE  SIGNATURES.  This Agreement may be executed
             ----------------------------------
in  counterpart  originals,  each  of which shall be treated as a fully executed
original  hereof  when  all  parties hereto have executed such a counterpart.  A
facsimile signature shall be treated as an original signature unless an original
signature  is  required  by  law.

     EXECUTED effective as of the date set forth above.

                                        PETROSEARCH  CORPORATION

<PAGE>
                                        By:  /s/
                                           -------------------------------------
                                           Dan  Denton,  COO  &  Exec.  V.  P.

                                        BARBEE  EXPLORATION,  INC.

                                        By:  /s/
                                           -------------------------------------
                                           Bill  J.  Barbee,  President

<PAGE>
                                   EXHIBIT "A"
                                   -----------

                     [Form of Overriding Royalty Assignment]

<PAGE>
                                   EXHIBIT "B"
                                   -----------

              [Form of Confidentiality Non-Circumvention Agreement]

<PAGE>
                        AGREEMENT EXTENDING CONTRACT TERM
                        ---------------------------------

     This  Agreement Extending Contract Term ("Agreement") is made this 18th day
of  March,  2005,  between  PETROSERACH ENERGY CORPORATION, a Nevada corporation
("PEC"),  successor  by  merger  to  PETROSEARCH CORPORATION ("Petrosearch") and
BARBEE  EXPLORATION,  INC.  ("Barbee").

                                    RECITALS:

     A.     Petrosearch  Corporation,  a  Texas  corporation, and Barbee entered
into  a  certain  Prospect  Generation  Agreement (the "Agreement") dated May 1,
2004.

     B.     The  Agreement  expires  on  April 1, 2005, but both Petrosearch and
Barbee  desire  to  effect  an  extension  of  the  current  term.

                               TERMS OF EXTENSION:

     NOW,  THEREFORE,  FOR  VALUE  RECEIVED,  Petrosearch  and  Barbee  agree as
follows:

     1.     LENGTH  OF  EXTENSION/AUTOMATIC  RENEWAL.  The  Agreement  is hereby
            ----------------------------------------
amended  to  extend the current expiration date from April 1, 2005, to August 1,
2005.  Thereafter,  this  Agreement  shall  automatically  renew  for successive
6-month  periods  unless either party notifies the other party in writing of its
election to terminate this Agreement at least 30 days prior to the expiration of
the  particular  6-month  period.

     2.     OTHER  STIPULATIONS.  Barbee  hereby  consents  to  the  transfer by
            -------------------
merger  of the Agreement to PEC.  PEC and Barbee hereby amend the first sentence
of  paragraph  13  of  the Agreement to read:  "Barbee may not assign any of its
rights  hereunder  without  PEC's  written  consent."

     3.     BINDING  ON HEIRS AND ASSIGNS.  This Agreement shall inure to and be
            -----------------------------
binding  upon  PEC  and  Barbee  and  their  respective  heirs, representatives,
successors  and  assigns.

     EXECUTED as of the Effective Date.

                                        PETROSEARCH  ENERGY  CORPORATION

                                        By:_____________________________
                                        Name:  _________________________
                                        Title:  ________________________

                                        BARBEE  EXPLORATION,  INC.

                                        By:______________________________
                                             Bill J. Barbee, PresidentREVOLVING CREDIT AGREEMENT
                           --------------------------

     This  Revolving Credit Agreement (this "Agreement") is made effective as of
October  1,  2004  ("Effective Date"), by and between PETROSEARCH CORPORATION, A
TEXAS  CORPORATION  ("Borrower"),  ANADARKO PETROSEARCH, L.L.C., A TEXAS LIMITED
LIABILITY  COMPANY  ("Anadarko  Petrosearch"),  TK  PETROSEARCH, L.L.C., A TEXAS
LIMITED  LIABILITY  COMPANY  ("TK Petrosearch"), GUIDANCE PETROSEARCH, L.L.C., A
TEXAS  LIMITED  LIABILITY  COMPANY  ("Guidance Petrosearch") and FORTUNA ENERGY,
L.P.,  A  CALIFORNIA  LIMITED  PARTNERSHIP  ("Lender").

                                    RECITALS:

     A.     Borrower  is  in the business of acquiring, developing and operating
oil  and  gas  properties  in  several states, including, Texas, Oklahoma, North
Dakota, Montana and Mississippi. Borrower has obtained commitments from industry
joint  venturers  to  develop  several  drilling prospects, thereby requiring an
accelerated  leasing  program  in  the  target areas. Additional acquisition and
exploration opportunities have contemporaneously been presented by third parties
to  Borrower  which  Borrower  desires  to  pursue  in addition to the near term
drilling  projects.

     B.     Borrower  and  its  wholly owned subsidiaries, Anadarko Petrosearch,
and  TK  Petrosearch,  desire  to utilize the financial resources of Lender as a
funding  source  to  fund  the  proposed  drilling projects and the proposed new
lease(s)  and  producing  property  acquisitions  and  Lender  desires  to  make
available  to  Borrower  a  credit  facility subject to the terms and provisions
herein.  Guidance  Petrosearch  desires to join herein to evidence its agreement
to  pledge,  hypothecate and mortgage to Lender certain North Dakota oil and gas
lease  interests  to  serve  as a part of the collateral for the credit facility
extended  to  Borrower.

                               TERMS OF AGREEMENT:

     NOW,  THEREFORE,  FOR  VALUE  RECEIVED,  the  sufficiency  of  which  is
acknowledged  by  the  parties,  the  parties  hereto  agree  as  follows:

                                    ARTICLE I

                    COMMITMENT USE OF PROCEEDS AND COLLATERAL
                    -----------------------------------------

     Section  1.1.     COMMITMENT/ADVANCES.  Subject to the terms and conditions
                       -------------------
of  this Agreement and beginning on the Effective Date, until the earlier of the
Maturity  of  the  revolving  loan or the early termination of this Agreement by
Lender  or  Borrower  described in Section 1.8 below, Lender will make a loan to
Borrower  by  making  advances  of  good  funds  by  wire transfer to Borrower's
designated  bank  or  such  designated  third party recipient as the parties may
mutually  agree  upon  (the "Advances"), from time to time as limited by Section
1.5  hereinbelow,  in such amounts as the Borrower may request up to the funding
limits described in this Agreement, up to the maximum aggregate principal amount
outstanding  at  any  time  during  the

<PAGE>
term  of  the  loan  of EIGHTEEN MILLION AND NO/100 DOLLARS ($18,000,000.00)[the
"Credit  Facility"].

     Section  1.2     USE  OF  PROCEEDS.  Proceeds of the Advances shall be used
                      -----------------
only  to  finance:

          (a)     Past,  present,  or  future acquisitions of oil and gas leases
     (collectively,  the  "Leases"),  including  all  title and land work, in TK
     Petrosearch  and  Anadarko  Petrosearch,  all  fees  paid  to  governmental
     entities (i.e. filing fees and/or tax stamps), bonus consideration, surface
     damage  payments,  prospect  acquisition  costs  such as Barbee costs which
     accrue under the Prospect Generation Agreement between Borrower and William
     Barbee,  associated  title,  geological,  and  engineering review, fees and
     payments to maintain such leases such as delay rentals;

          (b)     oil  and  gas drilling, reworking, production, transportation,
     marketing and plugging activities under the Leases, and

          (c)     All  Lender  charges  and fees, including fees and expenses of
     legal  counsel  to  Lender.

     During  the  term  of  this  Agreement, Borrower shall, subject to the Draw
Limitations  set  forth  hereinbelow  in  Section  1.5,  the Collateral Coverage
Requirements  set  forth  hereinbelow  in Section 1.6 and availability of Lender
funds,  use Lender funds pursuant to this Credit Facility for acquisition of oil
and  gas  lease(s)  acquired  by its subsidiaries before resorting to internally
available  funds  or  funds  provided  by  third  parties,  other  than drilling
co-venturers,  to  fund  such  acquisition(s).  Should  (i)  the  provisions  of
Sections  1.5  and/or  1.6  hereinbelow preclude the use of Lender funds for any
such  acquisition(s),  (ii)  Lender  fails  to  fund  Borrower's  request due to
inability of Lender, or (iii) Lender otherwise fail to respond to the Borrower's
request  for funds within the time period prescribed in Section 1.5 hereinbelow,
then  Borrower may resort to other available sources of capital and Lender shall
not be entitled to the overriding royalty interest benefits described in Section
2.3  hereinbelow  as  regards  to  such  respective  future  acquisition.

     Section  1.3     REVOLVING CREDIT NOTE.  The Advances shall be evidenced by
                      ---------------------
a  Revolving  Credit Note (the "Note") of the Borrower in substantially the form
attached  hereto  as EXHIBIT "A", dated as of the Effective Date, payable to the
                     -----------
order of Lender, and providing for interest on the outstanding principal balance
as  advanced,  from time to time, at the rate of six percent (6%) per annum (the
"Note  Rate").  Lender is irrevocably authorized by Borrower to make appropriate
notations  on the Note reflecting the amount of each Advance, and such notations
shall  be  deemed  conclusive,  absent  manifest  error.

     Section  1.4     COLLATERAL  FOR  CREDIT  FACILITY.  The collateral for the
                      ---------------------------------
Credit Facility evidenced by this Agreement shall be (a) other than as set forth
in  Sections  6.1  and  6.2  herein,  first and prior lien(s) on the oil and gas
leases,  wells,  downhole  and  surface  equipment  and storage tanks and stored
equipment  on  such  leases  as  to  which Lender's funds have been utilized for
acquisition  and/or  drilling costs referenced above in Sections 1.2(a) and (b),
including  all  existing  and future lease interests in Fort Bend County, Texas,
the  State  of Oklahoma and existing lease interests in North Dakota (regardless
of  whether  Lender  funds  are  used  for

                                          2
<PAGE>
     existing  lease  interests  in  North  Dakota (regardless of whether Lender
funds  are  used for acquisition and/or drilling in North Dakota), which lien(s)
shall  be  evidenced  by the form(s) of Deed of Trust, Assignment of Production,
Security  Agreement,  and  Financing  Statement  attached hereto and made a part
hereof  as  EXHIBIT  "B", and (b) first and prior lien(s) on one hundred percent
            ------------
(100%)  of  Borrower's  membership interest (subject to the after-payout back-in
interests  of  the  subsidiary  presidents,  where  applicable)  in  Anadarko
Petrosearch  and  TK  Petrosearch,  as  well  as  any  other  existing or future
subsidiaries  whose  activities  described  in Sections 1.2(a) and (b) above are
financed  by,  through  or  under this Revolving Credit Agreement, which lien(s)
shall  be  evidenced  by the form of Pledge Agreement attached hereto and made a
part  hereof as EXHIBIT "C" (the "Pledge Agreement"). Borrower further covenants
                -----------
and  agrees  to  execute  and  deliver  first  and  prior  lien(s)  covering any
additional  oil  and  gas  lease(s)  now  existing  or hereafter acquired and/or
drilled  using  Lender funds or any subsidiary now existing or hereafter created
to  acquire,  hold  or  develop oil and gas properties which are acquired and/or
developed  using  Lender  funds.  In  the  event  that  the  title review and/or
examination  for  newly  acquired  oil  and  gas  lease(s)  or interests therein
reflects  any  mortgage,  deeds of trust, tax lien or other apparent encumbrance
("encumbrance")  which,  if valid and existing, could impair the first and prior
status of Lender's lien(s) and security interest(s) therein, then Borrower shall
cause  such encumbrance, whether valid or otherwise, to be released of record or
shall  lawfully  bond  around  in  accordance with applicable state or local law
requirements the apparent encumbrance within sixty (60) days of the request date
for  any  Lender advance which will be used to either acquire the encumbered oil
and  gas lease(s) or reimburse Borrower or its subsidiaries for the costs of its
acquisition.  In  the event Borrower fails to cure such title encumbrance within
the  time period provided above, Lender may, but shall not be obligated to, cure
such  title  encumbrance  and  to  charge  the cost and expense incurred in such
curative  action  to  Borrower as an increase in the principal balance under the
Note in addition to all other rights of Lender herein and under any of the other
Loan  Documents.  Such  curative  expenses  so  advanced  shall  thereafter bear
interest  at  the  rate of eighteen (18%) per annum from the date incurred until
paid.

     Section  1.5.     DRAW LIMITATIONS.  The principal of the loan may be drawn
                       ----------------
by Borrower over a twelve (12) month period which shall begin on the date of the
initial  draw  under  this  Agreement ("Initial Draw Date") at a maximum rate of
$4,500,000.00  for  each three (3) month (calendar date to calendar date) period
following the Initial Draw Date ("Draw Period") in a lump sum or partial sums in
Borrower's discretion, subject to the Collateral Coverage Requirements described
in  Section  1.6  below.  Undrawn funds may be carried over to a succeeding Draw
Period.  Principal  repaid  during any Draw Period may be redrawn subject to the
$4,500,000.00 per Draw Period and Collateral Coverage limitations.  Each draw by
Borrower  other  than  the  Initial  Draw  shall be preceded by a 10-day written
request  (accompanied  by a statement of the proposed use of proceeds) to Lender
and  shall be funded by Lender on the eleventh (11th) day following the request.
In  the event that the eleventh (11th) day falls on a Saturday, Sunday or public
holiday, then the funding date shall be the next business day of Lender.  Unless
otherwise  agreed  by  Lender,  draw requests shall be funded no more frequently
than  monthly  during  any  3-month  Draw  Period.

     Borrower  acknowledges,  understands  and  agrees that Lender is a private,
non-public,  entity.  As such, Lender obtains its funds from the private capital
markets  and/or  individuals  who

                                          3
<PAGE>
desire to participate in Lenders investment banking activities, thus Lender does
not  have  a  guaranteed  source of money in which to fund this transaction with
Borrower.  Borrower acknowledges that the volatility of the capital markets, the
nature of Borrower's business activities and/or other events which may come into
existence may impact Lender's ability to raise and procure sufficient capital in
order  to fund all or substantially all of the Loan described in this Agreement.
While  Lender  will  use  its  best  efforts  to  raise all necessary capital to
complete  the  funding  obligations described in this Agreement, the Note and as
the  Credit  Facility,  Lender  cannot  and will not guaranty to Borrow that all
proposed  funding  required  herein,  will be available as, if and when Borrower
elects  to make draw requests under the terms of this Agreement and/or the Note.
Borrower acknowledges and agrees that the inability of Lender to obtain funds to
complete  the  funding  of  this Credit Facility will not constitute a breach or
violation  of  this  Agreement and/or the Note and/or any other Loan document as
defined herein on the part of Lender.  The preceding sentence shall not apply to
the  initial  $2,000,000.00  to  be funded by Lender under this Credit Facility.

     Section 1.6.     COLLATERAL COVERAGE REQUIREMENTS.  Unless otherwise agreed
                      --------------------------------
by  Lender,  unused  available funds under the Credit Facility after the initial
$4,500,000.00  is  drawn,  shall  only  be available for draw by Borrower if the
principal  balance of the Note outstanding after the requested draw will be less
than  the  sum  of  a)  the  actual costs of the oil and gas lease(s)  purchased
and/or  reimbursed  through  the  date of the requested draw with funds advanced
under  this  Agreement,  and  b) 75% of Borrower's Proved Producing Reserves (as
defined  herein)  from  all  sources, including the Proved Producing Reserves of
Anadarko Petrosearch and TK Petrosearch plus all other subsidiaries of Borrower,
as  such  Proved  Producing  Reserves  are  reflected in the most recent reserve
report  prepared  by  an  independent petroleum engineer engaged by Borrower and
otherwise  qualified  to  calculate  Proved  Producing Reserves acceptable under
Securities  and Exchange Commission ("SEC") standards.  For purposes hereof, the
term Proved Producing Reserves shall mean the estimated quantities of crude oil,
natural  gas  and natural gas liquids which, based upon engineering and geologic
data,  are  expected  to  be  recovered  under  existing  economic and operating
conditions  from  existing  wells  in  reservoirs  (including  behind  the  pipe
reservoirs)  that have produced at any time during the twelve (12) months before
the reporting date.  If for any reason the Collateral Coverage Requirements fall
below  the  minimum  threshold  amount  described in this Section 1.6 and remain
below  such  minimum  threshold amount for thirty (30) consecutive days, then in
such  event  Borrower  and  its  subsidiaries  shall cause additional collateral
acceptable to Lender to be secured, pledged and encumbered by Lender's first and
prior  lien(s)  and  security  interest(s),  all  at  Borrower's  expense.

     Section  1.7.     LENDER  STANDBY FEES FOR UNDRAWN PRINCIPAL.  Lender shall
                       ------------------------------------------
charge  quarter-annually  to  Borrower  and  Borrower  shall  pay  to Lender, as
invoiced,  a  standby  fee  equal to one quarter of one percent (0.25%) [i.e. 1%
annually]  of the funds available to be drawn under this Credit Facility for the
particular  Draw  Period,  but which are not drawn by Borrower.  Funds which are
not  available  to  be drawn in the particular Draw Period either because of (i)
the  $4,500,000.00  quarter-annual  draw  limitation (ii) limitations imposed by
Lender  due  to  deficiency  in  the  Collateral Coverage Requirements, or (iii)
Lender's  inability  to fund pursuant to timely request for funding by Borrower,
shall  not  be  included  in  the  calculation  of the standby fee for that Draw
Period.  The  standby fee shall be calculated using the average daily balance of
the  unused  available  funds  for  the  Draw  Period.

                                        4
<PAGE>
     Section  1.8     TERM OF CREDIT FACILITY/CALL AND PUT RIGHTS. The Note and
                      -------------------------------------------
any  and  all  obligations  of Borrower under this Agreement shall mature on the
two-  (2)  year  anniversary  of the initial Advance. Notwithstanding the 2-year
term,  after  eighteen  (18)  months,  either  Lender or Borrower shall have the
right, upon thirty (30) days written notice to the other party, to terminate the
credit  facility  and  cause to be prepaid (in the case of Borrower election) or
cause  to be repaid by Borrower (in the case of Lender election) all outstanding
principal and interest due upon the Note.

                                   ARTICLE II

           PAYMENTS OF PRINCIPAL AND INTEREST/ADDITIONAL CONSIDERATION
           -----------------------------------------------------------

     Section  2.1     PRINCIPAL  PAYMENTS.  Borrower shall repay the outstanding
                      -------------------
principal  in  monthly  installments  equal to ten percent (10%) of the original
amount  of  the particular principal advance commencing sixty (60) calendar days
after  the  date  of  the particular advance and continuing on the same calendar
date  of  each  succeeding  month  thereafter until repaid.  At such time as the
aggregate  principal  advances  under the Note equal or exceed $3,000,000.00 and
sixty (60) calendar days have elapsed since the date of the principal advance by
which  the  $3,000,000.00  threshold  has  been  achieved, the monthly principal
installments  due under the Note thereafter shall never be less than $300,000.00
until repaid in full.  (By way of example only, if the initial principal advance
of  $2,000,000.00  is  made  on October 6, 2004, then sixty (60) days after that
initial  advance  or  December  5, 2004, Borrower shall begin making $200,000.00
principal  installments.  If  an  additional $1,000,000.00 is advanced one month
after  the  initial  advance (i.e. November 6, 2004), then sixty (60) days after
                              ----
this  second  advance  (i.e.  January  5,  2005),  the minimum monthly principal
                        ----
installments  shall  increase  from  $200,000.00  to  $300,000.00).

     Section  2.2     INTEREST  PAYMENTS.   Borrower shall pay to Lender accrued
                      ------------------
interest  at  six  percent  (6.0%) per annum on the outstanding unpaid principal
balance quarter-annually, in arrears, commencing ninety (90) calendar days after
the date of the initial Advance and continuing quarter-annually thereafter until
Maturity.  All  interest  payments  shall  be  calculated  on  the average daily
principal  balance  outstanding  under  the  Note.

     Section 2.3     OVERRIDING ROYALTY ASSIGNMENT.  As additional consideration
                     -----------------------------
from Borrower to Lender to make the loan, Borrower shall cause TK Petrosearch to
deliver  to  Lender  upon execution hereof an assignment of a one percent (1% of
8/8ths)  overriding  royalty  interest ("ORRI") in the West Schenk Lease in Fort
Bend  County, Texas, and shall cause Anadarko Petrosearch to deliver to Lender a
one  percent (1% of 8/8ths) ORRI in all existing Oklahoma Leases.  Additionally,
Borrower  shall cause each of TK Petrosearch and Anadarko Petrosearch to deliver
to  Lender  a one percent of eight eighths (1% of 8/8ths) ORRI in all future oil
and  gas  lease(s)  acquired  by  either  TK Petrosearch or Anadarko Petrosearch
either  by  direct  payment or by reimbursement using Lender funds in the manner
set  forth  in Section 1.2(a) hereof.  Additionally, Borrower shall cause any of
its  other  subsidiaries, whether now existing or hereafter created, to assign a
corresponding  one  percent  (1% of 8/8ths) ORRI to Lender in all future oil and
gas  lease(s) acquired either by direct payment or by reimbursement using Lender

                                        5
<PAGE>
funds  in  the  manner set forth in Section 1.2(a) hereof.  The ORRIs are in all
respects  absolutely  and  irrevocably  earned when Lender funds are utilized by
Borrower  for  direct and/or indirect acquisition expenses, drilling expenses or
reimbursement to Borrower for such activities related to an oil and gas lease as
described  in  Sections 1.2(a) and (b) hereof, and the earned ORRIs shall not be
subject  to  reversion or reassignment upon repayment of the loan or termination
(by passage of time, early termination or acceleration by Lender upon Borrower's
default)  of  this  Credit  Facility.  Additionally, all earned ORRIs which have
been  earned  but  not assigned upon termination of the Credit Facility shall be
immediately  assigned, in recordable form, upon the termination event.  The form
of  Assignment  of  Overriding  Royalty  Interest  which  will  be used for each
assignment  is  attached  hereto  and  made  a  part  hereof  as  EXHIBIT  "D".
                                                                  ------------

     Section  2.4     APPLICATION OF PAYMENTS; PREPAYMENTS.  Borrower may prepay
                      ------------------------------------
the  Loan.  Any  prepayments  shall  be applied first to those fees and expenses
incurred  by Lender in enforcement of the Note, the Deed(s) of Trust, the Pledge
Agreement(s),  the  ORRI  assignment(s)  or  any  other  document  evidencing or
securing  the  obligations  of  Borrower  and/or  its  subsidiaries  under  this
Agreement  or  under  such  documents,  then to accrued interest and then to the
principal  balance  outstanding.

     Section 2.5     EVENTS UPON REPAYMENT OF LOAN.  Upon the full repayment and
                     -----------------------------
discharge  by  Borrower  of  all of the obligations under this Agreement and the
corresponding  loan  documents,  Lender shall, promptly after such repayment and
termination have occurred, release all of its liens and security interests under
the Deed(s) of Trust and the Pledge Agreement(s) and any other document executed
by  Borrower  and/or  its subsidiaries to evidence or secure the indebtedness of
Borrower  and/or  its  subsidiaries  under  this  Credit  Facility.

     Section  2.6.     PARTIAL  RELEASES OF DEEDS OF TRUST.   With regard to the
                       -----------------------------------
lien(s) and security agreement(s) created and evidenced by the Deed(s) of Trust,
Borrower  and  its subsidiaries who are parties to the Deed(s) of Trust shall be
entitled  to  obtain  from  Lender  upon  written  request to Lender, so long as
Borrower and/or its subsidiaries is/are not then in default under this Agreement
or  any other document evidencing or securing the obligations of Borrower and/or
its subsidiaries under this Agreement or under such documents, a partial release
of  the  Deed  of  Trust  so  long as the written request is signed by the chief
financial  and  accounting  officer  of Borrower and contains a certification by
said chief financial and accounting officer that the minimum Collateral Coverage
Requirements set forth in Section 1.6 above shall continue to be satisfied after
such  partial  release is executed and delivered by Lender. All Proved Producing
Reserves  relied  upon  by  Borrower  in  its certification and request shall be
supported  by  a  reserve  study or studies dated within thirty (30) days of the
request  date.

                                   ARTICLE III

                             CONDITIONS TO ADVANCES
                             ----------------------

     The obligation of Lender to fund the Advances shall be subject to the prior
or  concurrent  satisfaction  (or in Lender's discretion, the waiver) of each of
the  conditions  precedent  set  forth  in  this  Section.

                                          6
<PAGE>
     Section  3.1.     RESOLUTION.  Lender  shall  have received  from  Borrower
                       ----------
a certificate of its  Secretary or Assistant Secretary, member, manager, general
partner  or  other  appropriate officer, as applicable, as to (a) resolutions of
its  Board  of Directors or Managers, as the case may be, then in full force and
effect  authorizing  the  execution, delivery and performance of this Agreement,
the  Note,  the Pledge Agreement, the Assignment of Overriding Royalty Interests
and  each  other  loan  document  to  be  executed by it; (b) the incumbency and
signatures  of  those  of  its  officers  and/or managers authorized to act with
respect  to  this  Agreement,  and (c) that Borrower and its subsidiaries are in
compliance with all of the covenants and agreements contained in this Agreement.

     Section  3.2.     DELIVERY  OF  NOTE.  Lender  shall have received the Note
                       ------------------
duly  executed  and  delivered  by  Borrower.

     Section 3.3     DELIVERY OFDEED OF TRUST ANDPLEDGE AGREEMENT.  Lender shall
                     --------------------------------------------
have received the Deed(s) of Trust and the Pledge Agreement(s)  duly executed in
recordable  form  on  behalf  of  the  Borrower,  Anadarko  Petrosearch  and  TK
Petrosearch.

     Section  3.4.     DELIVERY  OF  OVERRIDE  ASSIGNMENT.  Lender  shall  have
                       ----------------------------------
received  the  Assignments  of  Overriding  Royalty  Interest  duly  executed in
recordable form on behalf of TK Petrosearch and Anadarko Petrosearch.

     Section  3.5.     COMPLIANCE  WITH  LOAN  DOCUMENTS.  Borrower  shall  have
                       ---------------------------------
performed  all  agreements  and  covenants  required  by  this Agreement and all
representations  and  warranties  herein and in the other loan documents made by
Borrower  or any of its subsidiaries shall be true and correct as of the date of
the  Advance.

     Section  3.6     NO  DEFAULT.  No  default,  or  event which could become a
                      -----------
default if uncured, shall have occurred and be continuing on the date of funding
of  the  requested  Advance.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES
                         ------------------------------

     In  order  to  induce  Lender  to enter into this Agreement and to make the
Advances hereunder, Borrower represents and warrants unto Lender as follows:

     Section  4.1     ORGANIZATION,  ETC.  Borrower  is  a  corporation  validly
                      ------------------
organized  and  existing  and  in  good  standing under the laws of the State of
Texas,  is duly qualified to do business and is in good standing in the State of
Texas  and  all  jurisdictions  where  the  nature of its business requires such
qualification,  and  has  full  power  and  authority  and  holds  all requisite
governmental licenses, permits and other approvals to enter into and perform its
obligations  under  this  Agreement,  the  Note,  the  Deed of Trust, the Pledge
Agreement  and  each  other  loan  document  and to own and hold under lease its
property and to conduct its business substantially as currently conducted by it.

     Section  4.2     DUE  AUTHORIZATION,  NON-CONTRAVENTION, ETC.  Borrower has
                      -------------------------------------------
the  full  legal  power,  right  and  capacity  to  enter  into and perform this
Agreement  and  the  other  loan  documents

                                          7
<PAGE>
to which it is party.  Each obligor has the full legal power, right and capacity
to  enter  into  and  perform  the  Loan  Documents to which it is a party.  The
execution, delivery and performance by Borrower of this Agreement, the Note, the
Deed  of Trust, the Pledge Agreement and each other loan document executed or to
be  executed  by  it,  and the execution, delivery and performance by each other
obligor  of  each  loan  document  executed  or  to be executed by it are within
Borrower's  and  each  such  obligor's company, corporate or partnership powers,
respectively,  have  been duly authorized by all necessary corporate action, and
do not (a) contravene Borrower's or any such obligor's organizational documents,
(b)  contravene  any  contractual restriction, law or governmental regulation or
court  decree or order binding on or affecting Borrower or any such obligor, (c)
result  in,  or  require  the  creation or imposition of, any lien on any of any
obligor's  properties,  or  (d)  require  the  consent  or approval of any other
person.

     Section  4.3     GOVERNMENT APPROVAL, REGULATION, ETC.  No authorization or
                      ------------------------------------
approval  or  other action by, and no notice to or filing with, any governmental
authority  or regulatory body or other person is required for the due execution,
delivery  or performance by Borrower or any other obligor of this Agreement, the
Note,  the  Deed  of  Trust,  the Pledge Agreement or any other loan document to
which  it is a party.  Neither Borrower nor any of its subsidiaries or any other
obligor  is an "investment company" within the meaning of the Investment Company
Act  of 1940, as amended, or a "holding company," or a "subsidiary company" of a
"holding  company," or an "affiliate" of a "holding company" or of a "subsidiary
company"  of  a  "holding  company,"  within  the  meaning of the Public Utility
Holding  Company  Act  of  1935,  as  amended.

     Section  4.4     VALIDITY,  ETC.  This Agreement constitutes, and the Note,
                      --------------
the  Deed(s)  of  Trust,  the  Pledge  Agreement(s) and each other loan document
executed  by Borrower and/or TK Petrosearch and/or Anadarko Petrosearch will, on
the due execution and delivery thereof, constitute, the legal, valid and binding
obligations  of  Borrower  and/or  TK  Petrosearch  and/or  Anadarko Petrosearch
enforceable  in  accordance with their respective terms.  Each document executed
pursuant  hereto  by  each named obligor will, on the due execution and delivery
thereof  by  such  obligor,  be  the legal, valid and binding obligation of such
obligor  enforceable  in  accordance  with  its  terms.

     Section  4.5.     NO MATERIAL ADVERSE CHANGE.  Since the date of Borrower's
                       --------------------------
most  recent  audited  financial  statements,  there  has  not been any material
adverse  change.

     Section 4.6.     LITIGATION, LABOR CONTROVERSIES, ETC.  There is no pending
                      ------------------------------------
or,  to  the knowledge of Borrower, threatened litigation, action, proceeding or
labor  controversy  affecting  Borrower  or any of its subsidiaries or any other
obligor,  or  any  of their properties, assets or revenues, or the Leases, which
has  caused  or  may cause a material adverse effect or which purports to affect
the  legality,  validity or enforceability of this Agreement, the Note, the Deed
of Trust, the Pledge Agreement or any other loan document.

     Section  4.7.     BROKER'S FEES.  Borrower has not incurred any obligation,
                       -------------
contingent  or  otherwise,  for  brokers'  or  finders'  fees  in respect of the
transactions  contemplated  by  this  Agreement.

                                          8
<PAGE>
     Section  4.8.     TAXES.  Borrower,  each of its subsidiaries and any other
                       -----
obligor has filed all tax returns and reports required by law to have been filed
by it and has paid all taxes and governmental charges thereby shown to be owing,
except  any  such  taxes or charges which are being diligently contested in good
faith  by  appropriate  proceedings  in  accordance with the requirements of the
jurisdiction  where  such  contest is pending and for which adequate reserves in
accordance  with  GAAP  shall have been set aside on its books. Borrower has not
been  audited  by any state, federal, or other governmental or other body having
taxing  authority.

     Section  4.9.     PENSION  AND  WELFARE  PLANS; EMPLOYEES.  Borrower has no
                       ---------------------------------------
pension plans or employee benefit plans within the meaning of ERISA.

     Section 4.10.     COMPLIANCE WITH LAWS.  Borrower and its subsidiaries have
                       --------------------
complied  with  all  applicable  statutes,  rules,  regulations,  orders  and
restrictions  of  any  domestic  or foreign government or any instrumentality or
agency thereof, having jurisdiction over the Leases. Neither Borrower nor any of
its  Subsidiaries  has  received any notice to the effect that the operations of
Borrower  or  such  subsidiary relating to the Leases are not in compliance with
any  of the requirements of applicable environmental laws, or are the subject of
any  federal  or  state investigations evaluating whether any remedial action is
needed  to  respond  to  a  release of any hazardous material (as defined in the
environmental  laws)  involving  the  Leases.

     Section  4.11.     ENVIRONMENTAL WARRANTIES.  Except as reasonably could be
                        ------------------------
expected to cause a material adverse effect (i) all of the Leases and associated
facilities  operated  by  Borrower  or  any  of  its subsidiaries have been, and
continue  to  be,  owned,  leased  or  operated  by Borrower, such subsidiary in
compliance  with all environmental laws; (ii) there have been no past, and there
are  no  pending  or  threatened claims, complaints, notices or inquiries to, or
requests  for  information  received  by,  or  known  to, Borrower or any of its
subsidiaries  with  respect  to,  any alleged violation of any environmental law
with  respect  to  the  oil  and gas leases or associated facilities operated by
Borrower,  such  Subsidiary  or  such  Obligor;  (iii)  there  are no pending or
threatened  claims,  complaints,  notices  or  inquiries  to,  or  requests  for
information  received  by,  or known to, Borrower or any of its subsidiaries for
potential liability under any environmental law or under any common law theories
relating  to  operations  or  the  condition  of any of the lands comprising the
Leases  (including  underlying  groundwater);  and  (iv)  Borrower  and  its
subsidiaries  have  been  issued  and  are  in  compliance  with  all  permits,
certificates,  approvals,  licenses  and  other  authorizations  relating  to
environmental  matters  and  necessary  or  desirable  for  its business and the
operation  of  each  of  the  Leases.

     Section  4.12.  SEC  REQUIREMENTS.  Neither  Borrower  nor  any  of  its
                     -----------------
subsidiaries  has received notice from the Securities and Exchange Commission or
any state securities agency that Borrower or any subsidiary is not in compliance
with applicable Securities and Exchange Commission or state securities rules and
regulations  or  is under investigation regarding the potential violation of any
such  rule  or  regulation.

                                    ARTICLE V

                              AFFIRMATIVE COVENANTS
                              ---------------------

                                          9
<PAGE>
     Borrower  agrees  with Lender that during the Term of this credit facility,
Borrower  will,  and will cause its subsidiaries to perform, the obligations set
forth in this Section.

     Section  5.1.     ALLOCATION  AND  BUDGETING OF LOAN PROCEEDS FOR DRILLING.
                       --------------------------------------------------------
Borrower  shall, in good faith exercising sound commercial judgment, endeavor to
budget  and allocate the requested advances under this Credit Facility in such a
manner  that  sufficient  funds shall be available to Borrower in the near term,
from  third party venturers, projected cash flow or set asides to drill and test
the  oil  and  gas lease(s) acquired with or reimbursed by Credit Facility funds
within  the  primary term of such oil and gas lease(s) and shall have determined
that  appropriate and sufficient drilling rigs and/or equipment are available in
the  geographic  area  where such drilling activity is to occur within such time
period.

     Section  5.2.     FINANCIAL  INFORMATION,  REPORTS, NOTICES, ETC.  Borrower
                       ----------------------------------------------
will furnish, or will cause to be furnished at Borrower's cost, to Lender copies
of (i) fiscal quarter unaudited and annual audited financial statements prepared
in  accordance  with  GAAP;  (ii)  all reserve reports prepared at the behest of
Borrower;  (iii)  all  filings  with the Securities and Exchange Commission; and
(iv)  all  press  releases.

     Section  5.3.     COMPLIANCE  WITH LAWS, ETC.  Borrower shall comply in all
                       --------------------------
material  respects  with  all  applicable  laws,  rules,  regulations,  orders,
licenses,  contracts,  and  permits,  such  compliance  to  include,  without
limitation: (i) compliance with all environmental laws; (ii) the maintenance and
preservation  of  its  existence  and qualification as a corporation and/or as a
foreign  corporation  in  all  jurisdictions  where  the  nature of its business
requires  such  qualification;  (iii)  compliance  with  all  SEC  rules  and
regulations;  and  (iv)  the  payment, before the same become delinquent, of all
taxes, assessments and governmental charges imposed upon it or upon its property
except  to  the  extent  being diligently contested in good faith by appropriate
proceedings  and  for which adequate reserves in accordance with GAAP shall have
been  set  aside  on  its  books.

     Section 5.4.     TAXES.  Borrower will make all required federal income tax
                      -----
filings  prior to any applicable filing deadlines.  Borrower shall pay, promptly
when  due,  and  in  any  event within thirty (30) days of its payment due date,
except  as  contested in good faith and by appropriate proceedings in compliance
with  the laws and procedures of the taxing jurisdiction under which the contest
is filed and for which adequate reserves in accordance with GAAP shall have been
set  aside  on  its books, together with interest and penalties thereon, if any,
all  taxes, including severance taxes and other taxes, duties, imposts, charges,
levies  and  assessments  of  any  kind  or  nature  whatsoever, imposed upon or
assessed  with respect to or charged against the Leases or production therefrom.

     Section  5.5.     INSURANCE.  Borrower  will  maintain (or will cause to be
                       ---------
maintained)  bonding  and liability insurance in coverages and amounts customary
and  usual  in  the  North  American  exploration and production industry and in
compliance  with  the  laws,  rules and regulations of the jurisdiction in which
such operations and/or property is located.  At Lender's request, Borrower shall
cause Lender to be named on any policy or policies of insurance as an additional
insured  or  loss  payee  to  the  extent  of  its  interest,  as  applicable.

                                          10
<PAGE>
     Section  5.6.     BOOKS  AND  RECORDS.  Borrower  and its subsidiaries will
                       -------------------
keep  books  and  records which accurately reflect all of their business affairs
and  transactions,  or  relate  to  the  Leases, and permit Lender or any of its
representatives,  at reasonable times and intervals, to visit all of its offices
and  the  Leases, to discuss such affairs and transactions with their respective
officers  and independent public accountants (and Lender is hereby authorized to
have  such  independent  public  accountants  discuss  the  financial matters of
Borrower  and its subsidiaries) and to examine (and, at the expense of Borrower,
photocopy  extracts  from) any of its books or other corporate records. Borrower
shall  pay  any fees incurred in connection with Lender's exercise of its rights
pursuant to this Section.

     Section 5.7.     ENVIRONMENTAL COVENANT.  Borrower will (i) use and operate
                      ----------------------
all  of  its facilities and properties (including the Leases) in compliance with
all  environmental  laws,  keep  all necessary permits, approvals, certificates,
licenses  and  other  authorizations relating to environmental matters in effect
and  remain in material compliance therewith, and handle all hazardous materials
in  compliance  with  all applicable environmental laws, (ii) immediately notify
Lender  and  provide  copies  upon  receipt  of  all written claims, complaints,
notices  or inquiries relating to the condition of its facilities and properties
or  compliance  with  environmental  laws,  and  shall  promptly  cure  and have
dismissed  with  prejudice  to  the  satisfaction  of  Lender  any  actions  and
proceedings  relating  to  compliance with environmental laws, and (iii) provide
such  information  and  certifications  which Lender may reasonably request from
time  to  time  to  evidence  compliance  with  this  Section.

     Section 5.8.     FURTHER ASSURANCES.  Borrower will execute and deliver all
                      ------------------
such other and additional instruments, notices, releases and other documents and
will  do  all  such  other  acts  and  things  as may be reasonably necessary or
appropriate  to more fully secure Lender or its successors or assigns all of the
respective  rights  and  interests  herein  and hereby or pursuant to any of the
other  loan  documents  granted  or  intended  so  to  be.

     Section  5.9.     PUNCTUAL  PAYMENT.  Borrower  shall timely and punctually
                       -----------------
pay all interest, principal and all other amounts when due under this Agreement,
the  Note,  the Deed(s) of Trust, the Pledge Agreement(s), or any other document
executed  by  Borrower  and/or  its  subsidiaries  to  evidence  or  secure  the
indebtedness of Borrower and/or its subsidiaries under this Credit Facility.

                                   ARTICLE VI

                               NEGATIVE COVENANTS
                               ------------------

     Borrower  agrees  with Lender that during the Term of this Credit Facility,
Borrower  will,  and will cause its subsidiaries to perform, the obligations set
forth  in  this  Section.

     Section  6.1.  NO  SENIOR  OR  PARI PASSU INDEBTEDNESS.  Borrower, Anadarko
                    ---------------------------------------
Petrosearch  and TK Petrosearch shall not, without Lender's consent, which shall
not  be  unreasonably  withheld, incur any indebtedness which is senior to or in
pari  passu  to  this Credit Facility nor directly or indirectly hypothecate the
oil  and gas leases, cash flow, assets or reserves of Anadarko Petrosearch or TK
Petrosearch  in any credit extension or loan which is senior to or in pari passu
to this Credit Facility while any part of the principal advanced by Lender under
the  Note  is

                                          11
<PAGE>
outstanding  and  unpaid.  The  existing  Milby Bonds secured by a first lien on
production from TK Petrosearch's Fort Bend County, Texas leases shall be paid in
full  out  of  the  Initial  Draw.

     Section  6.2.     LIENS  OF DEED OF TRUST AND PLEDGE AGREEMENT.  Except for
                       --------------------------------------------
the  back-in  interests  of  the  subsidiary  President,  if applicable, as to a
particular subsidiary, the Deed(s) of Trust and the Pledge Agreement(s) are, and
always  will  be  kept, a direct first perfected lien and security interest upon
100% of the oil and gas leases of Borrower, Anadarko Petrosearch, TK Petrosearch
and Guidance Petrosearch (as to the Deed(s) of Trust) and 100% of the membership
interests  of  TK  Petrosearch  and  Anadarko  Petrosearch  (as  to  the  Pledge
Agreement(s)).  Borrower  will  not  create or suffer to be created or permit to
exist  any  lien,  security interest or charge which is senior, prior to or on a
parity  with  the  liens  and security interests of the Deed(s) of Trust and the
Pledge  Agreement(s) upon the oil and gas leases covered by the Deed(s) of Trust
or  the  membership  interests in Anadarko Petrosearch and TK Petrosearch or any
part  thereof  or  upon  the  rents,  issues, revenues, profits and other income
therefrom.

     Section  6.3.     BUSINESS  ACTIVITIES.  Borrower is a corporation and will
                       --------------------
not  engage,  or  permit  any  of  its  subsidiaries  to engage, in any business
activity,  except  the owning, operating, producing, processing and marketing of
hydrocarbons  and  such  activities  as  may  be  incidental or related thereto,
without  the  prior  written  consent  of  Lender,  in  its  discretion.

     Section  6.4.     CONSOLIDATION,  MERGER, ETC.  Borrower will not liquidate
                       ---------------------------
or dissolve, consolidate with, or merge into or with, any other person or entity
without  the  prior  written  consent  of  Lender,  which  consent  shall not be
unreasonably  withheld.  Lender  hereby grants its consent to Borrower's current
proposed  business  combination  with  a  newly  formed  entity  so  long as the
reorganization  results  in  a  substantial  infusion  of working capital toward
development  of  the  Leases.

     Section  6.5.  NO  CHANGE IN NAME, LOCATION, ETC.  Borrower will not change
                    ---------------------------------
its  name  or  identity, or change the location of its chief executive office or
its  chief  place  of  business  or the place where Borrower keeps its books and
records concerning the Leases without the prior written consent of Lender, which
consent  shall  not  be  unreasonably  withheld.

                                   ARTICLE VII
                                   -----------

                      EVENTS OF DEFAULT/REMEDIES OF LENDER
                      ------------------------------------

     Each of the following events or occurrences described in this Section shall
constitute  an  "Event  of  Default."

     Section 7.1.     NON-PAYMENT OF OBLIGATIONS.  Borrower shall default in the
                      --------------------------
payment  or  prepayment when due of any principal of or interest under the Note,
or  Borrower  or  any other obligor shall default in the payment when due of any
other  monetary  obligation.

     Section  7.2.     BREACH  OF  WARRANTY.  Any  representation or warranty of
                       --------------------
Borrower  made  or  deemed  to  be made hereunder or in the Note, the Deed(s) of
Trust,  any  supplemental  Deed  of  Trust,  the Pledge Agreement(s) or any ORRI
assignment  executed by Borrower and/or its subsidiaries or any other writing or
certificate  furnished  by  or  on  behalf  of  Borrower  or  any  of  its

                                          12
<PAGE>
subsidiaries  for  the  purposes  of or in connection with this Agreement or any
such  other  loan  document  is  false  in  any  material  respect.

     Section  7.3.     NON-PERFORMANCE  OF CERTAIN COVENANTS AND OBLIGATIONS.  A
                       -----------------------------------------------------
default  in  the  due  performance by Borrower or any of its subsidiaries of any
covenant or express agreement contained in this Agreement, the Note, the Deed(s)
of Trust, any supplemental Deed(s) of Trust, the Pledge Agreement(s) or any ORRI
assignment(s)  and  continuation  of  such  default  beyond the applicable grace
period  expressly  granted,  if  any,  with  respect  thereto.

     Section 7.4.     JUDGMENTS.  Any judgment or order for the payment of money
                      ---------
in  excess  of  $250,000.00  shall  be  rendered  against Borrower or any of its
collateral  subsidiaries  hereunder and either (a) enforcement proceedings shall
have been commenced by any creditor upon such judgment or order, (b) there shall
be any period of ten (10) consecutive days during which a stay of enforcement of
such judgment or order, by reason of a pending appeal or otherwise, shall not be
in  effect  or  (c) the judgment has not been superseded by the filing of a bond
prescribed  under  the laws of the jurisdiction where the judgment originated or
where  the  judgment  is  sought  to  be  enforced.

     Section  7.5.     BANKRUPTCY,  INSOLVENCY,  ETC.  Borrower shall (a) become
                       -----------------------------
insolvent,  be  declared  bankrupt  (involuntary  or  voluntary) or generally be
unable  to  pay,  or  admit in writing its inability or unwillingness to pay its
debts  as  they  become  due,  (b)  apply  for, consent to, or acquiesce in, the
appointment  of  a  trustee,  receiver,  sequestrator  or  other  custodian  for
Borrower,  the  Leases  or  any other property of any thereof, or make a general
assignment for the benefit of creditors, (c) in the absence of such application,
consent or acquiescence, permit or suffer to exist the appointment of a trustee,
receiver,  sequestrator or other custodian for Borrower, any of its Subsidiaries
or  for the Leases or any part thereof, and such trustee, receiver, sequestrator
or  other  custodian shall not be discharged within sixty (60) days or an action
commenced within such period seeking such discharge and prosecuted in good faith
to  conclusion.

     Section  7.6     REMEDIES  OF  LENDER.  Upon  an event of default described
                      --------------------
above  in this Article, Lender shall, prior to exercising the remedies described
herein, provide Borrower with written notice specifying in reasonable detail the
event  of  default  which  has  occurred and stating that it intends to exercise
remedies  provided  in this Section.  Borrower shall then have five  (5) days in
the  case  of  a  monetary  default,  and  twenty  (20)  days  in  the case of a
non-monetary  default, after receipt of such notice to cure or cause to be cured
such default and to provide Lender with notice and reasonable documentation that
it  has  cured or cause to be cured such Event of Default.  If Borrower does not
provide  such  proper notice and evidence, then Lender may immediately by notice
to Borrower declare all or any portion of the outstanding principal amount under
the  Note  and other obligations to be due and payable whereupon the full unpaid
amount  under  the Note and other obligations which shall be so declared due and
payable shall be and become immediately due and payable, without further notice,
demand  or presentment.   Lender is further authorized, after the passage of the
particular  cure  period,  to  perform or cause to be performed such act or take
such  action, or pay such money that Lender deems necessary or desirable to cure
such  Event  of Default, and any expenses so incurred by Lender and any money so
paid  by the Lender shall be a demand obligation owing by Borrower to the Lender
and  the  Lender,  upon  making  such payment, shall be subrogated to all of the
rights  of  the  Person

                                          13
<PAGE>
receiving  such  payment.  Each  amount  due and owing by Borrower to the Lender
pursuant  to  this Agreement or any other loan document shall bear interest from
the  date  of  notice  to  Borrower  of  such  expenditure  or  payment or other
occurrence  which  gives rise to such amount being owed to the Lender until paid
at  the Note interest rate plus six percent (6%) per annum, and all such amounts
together  with  such  interest  thereon  shall  become  part  of the obligations
evidenced  by  the Note and deemed secured by the Deed(s) of Trust and all other
documents  described  or  contemplated  by  this  Agreement  as security for the
obligations of Borrower and its subsidiaries.  Upon demand, after the occurrence
of  an  event  of  default,  Borrower  shall reimburse Lender for all reasonable
amounts  expended  (including the fees and out-of-pocket expenses of counsel) in
connection  therewith,  as  a  result  of  or in connection with its exercise of
remedies,  together with interest on such amounts at the Note interest rate from
the  date  incurred  until  reimbursed.

                                  ARTICLE VIII

                                  MISCELLANEOUS
                                  -------------

     Section  8.01.     EXPENSES;  INDEMNIFICATION.  Borrower  agrees  to pay on
                        --------------------------
demand  all  costs  and  expenses  incurred  by  Lender  in  connection with the
preparation,  negotiation,  and  execution  of  this  Agreement  and any and all
amendments,  modifications,  and supplements hereto.  Borrower agrees to pay and
to  hold  Lender  harmless  from  and against all excise, sales, stamp, or other
taxes and all fees payable in connection with this Agreement or the transactions
contemplated  hereby, and agree to hold Lender harmless from and against any and
all  present  or  future claims or liabilities with respect to or resulting from
Borrower  performing  or  delaying  in  performing  their obligations under this
Agreement.

     Section  8.02.     NO  WAIVER; CUMULATIVE REMEDIES.  No failure on the part
                        -------------------------------
of  Lender to exercise and no delay in exercising, and no course of dealing with
respect to, any right, power, or privilege under this Agreement shall operate as
a  waiver thereof, nor shall any single or partial exercise of any right, power,
or privilege under this Agreement preclude any other or further exercise thereof
or the exercise of any other right, power, or privilege. The rights and remedies
provided  for  in  this Agreement are cumulative and not exclusive of any rights
and  remedies  provided  by  law.

     Section  8.03.     SUCCESSORS AND ASSIGNS.  This Agreement shall be binding
                        ----------------------
upon  and inure to the benefit of Borrower, TK Petrosearch, Anadarko Petrosearch
and  Lender  and their respective successors, and assigns, except that Borrower,
TK  Petrosearch  and  Anadarko  Petrosearch  may not assign any of its rights or
obligations  under  this  Agreement without the prior written consent of Lender,
which  consent  shall  not  be  unreasonably  withheld.

     Section  8.04.     AMENDMENT;  ENTIRE  AGREEMENT.  This  Agreement together
                        -----------------------------
with all documents described or referenced in this Agreement embodies the entire
agreement  among  the  parties  hereto  and  supersedes all prior agreements and
understandings,  if  any, relating to the subject matter hereof.  The provisions
of  this  Agreement  may  be  amended or waived only by an instrument in writing
signed  by  the  parties  hereto.

                                       14
<PAGE>
     Section  8.05.     NOTICES.  Any  notice,  consent,  or other communication
                        -------
required  or  permitted  to  be given under this Agreement to Lender or Borrower
must  be in writing and delivered in person or mailed by registered or certified
mail,  return  receipt  requested,  postage  prepaid,  as  follows:

     To  Lender:                  Fortuna  Asset  Management,  LLC
                                  1300  Bristol  Street
                                  Newport  Beach,  CA  92660
                                  Attention: Karen Beth Brenner, Managing Member
                                  FAX:  (949)  476-3098

                 (if by mail)     P.O.  Box  9109
                                  Newport  Beach,  CA  92658

     To  Borrower,  Anadarko,
     or  TK  Petrosearch:         Petrosearch  Corporation
                                  4801  Woodway  Drive,  Suite  300E
                                  Houston,  Texas  77056
                                  Attention:  President
                                  FAX:  (713)  961-9338

Any  such  notice,  consent,  or  other communication shall be deemed given when
delivered in person or, if mailed, when duly deposited in the mails.

     SECTION  8.06.    APPLICABLE  LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND
                       ---------------
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

     Section  8.07.     HEADINGS.  The headings, captions, and arrangements used
                        --------
in  this  Agreement  are  for  convenience  only  and  shall  not  affect  the
interpretation  of  this  Agreement.

     Section  8.08.     SURVIVAL  OF  REPRESENTATIONS  AND  WARRANTIES.  All
                        ----------------------------------------------
representations  and  warranties  made  in  this Agreement or in any certificate
delivered  pursuant  hereto  shall  survive  the  execution and delivery of this
Agreement,  and  no investigation by Lender shall affect the representations and
warranties  or  the  right  of  Lender  to  rely  upon  them.

     Section  8.09.     COUNTERPARTS.  This  Agreement  may  be  executed in any
                        ------------
number  of  counterparts,  each of which shall be deemed an original, but all of
which  together  shall  constitute  one  and  the  same  instruments.

     Section  8.10.     SEVERABILITY.  Any  provision of this Agreement which is
                        ------------
prohibited  or unenforceable in any jurisdiction shall, as to such jurisdiction,
be  ineffective  to  the  extent of such prohibition or unenforceability without
invalidating  the  remaining  provisions  of  this  Agreement,  and  any  such
prohibition  or  unenforceability  in  any  jurisdiction shall not invalidate or
render  unenforceable  such  provision  in  any  other  jurisdiction.

                                       15
<PAGE>
     Section  8.11.  USA  PATRIOT  ACT  COMPLIANCE.  This Agreement is expressly
                     -----------------------------
subject  to the provisions of the USA Patriot Act, PublicLaw 107-56, signed into
law  October  26,  2001,  and the resulting amendments to the various and sundry
federal  statutes  resulting  from  its  provisions.

     Section  8.12.  NO  ORAL  AGREEMENTS.  THIS WRITTEN LOAN AGREEMENT TOGETHER
                     --------------------
WITH  THE DOCUMENTS DESCRIBED OR REFERENCED HEREIN REPRESENT THE FINAL AGREEMENT
BETWEEN  THE  PARTIES  AND  MAY  NOT  BE  CONTRADICTED  BY  EVIDENCE  OF  PRIOR,
CONTEMPORANEOUS  OR  SUBSEQUENT  ORAL  AGREEMENTS  OF THE PARTIES.  THERE ARE NO
UNWRITTEN  ORAL  AGREEMENTS  BETWEEN  THE  PARTIES.

     Executed as of the Effective Date above written.

SIGNATURES APPEAR ON FOLLOWING PAGE

                                       16
<PAGE>
                                          "Borrower"

                                     PETROSEARCH  CORPORATION

                                     By:  /s/  Bradley  J.  Simmons
                                        --------------------------------------
                                        Bradley  J.  Simmons,  President

                                          "Anadarko  Petrosearch"

                                     ANADARKO  PETROSEARCH,  L.L.C.

                                     By:  /s/  Bradley  J.  Simmons
                                        --------------------------------------
                                        Bradley  J.  Simmons,  Manager

                                          "TK  Petrosearch"

                                     TK  PETROSEARCH,  L.L.C.

                                     By:  /s/  Bradley  J.  Simmons
                                        --------------------------------------
                                        Bradley  J.  Simmons,  Manager

                                          "Guidance  Petrosearch"

                                      GUIDANCE  PETROSEARCH,  L.L.C.

                                     By:  /s/  Bradley  J.  Simmons
                                        --------------------------------------
                                        Bradley  J.  Simmons,  Manager

                                          "Lender"

                                     FORTUNA  ENERGY,  L.P.
                                     BY:  FORTUNA  ASSET  MANAGEMENT,  LLC
                                          Its  General  Partner

                                     By:  /s/  Karen Beth Brenner
                                        --------------------------------------
                                        Karen Beth Brenner, Managing Member

                                       17

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