Document:

PLEDGE AGREEMENT
                                ----------------
                           (LLC Membership Interests)

     This  Pledge Agreement ("Pledge Agreement") is made effective as of October
15,  2004  ("Effective  Date"),  by and between PETROSEARCH CORPORATION, a Texas
corporation ("Pledgor"), and FORTUNA ENERGY, L.P. ("Secured Party").

                                    RECITALS:

     A.     Pledgor  is  in  the business of acquiring, developing and operating
oil  and  gas  properties  in  several states, including, Texas, Oklahoma, North
Dakota, Montana and Mississippi.  Pledgor 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 Pledgor which Pledgor desires to pursue in addition to the near term drilling
projects.

     B.     Pledgor  and  its  wholly  owned subsidiaries, Anadarko Petrosearch,
L.L.C.,  a  Texas  limited  liability  company  ("Anadarko  Petrosearch") and TK
Petrosearch,  L.L.C.,  a Texas limited liability company, ("TK Petrosearch") and
Guidance  Petrosearch,  L.L.C., together with Secured Party, have entered into a
certain Revolving Credit Agreement of even date to facilitate the utilization of
the  financial  resources of Secured Party as a funding source to fund new lease
acquisitions  and  drilling  projects.

     C.     Secured Party has requested that the membership interests (ownership
interests)  in  Anadarko  Petrosearch,  L.L.C. and TK Petrosearch, L.L.C. in the
name  of  or  held  for  the benefit of Pledgor be pledged by Pledgor to Secured
Party  as  security  for repayment of the funds advanced and as security for all
other  obligations  described  in  the Revolving Credit Agreement, the Revolving
Credit  Note  of  even date in the original principal sum of $18,000,000.00 (the
"Note"),  and  associated  loan  documents.

                               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

                          SECURITY INTEREST AND PLEDGE
                          ----------------------------

     Section  1.01.     SECURITY  INTEREST  AND PLEDGE.  Subject to the terms of
                        ------------------------------
this  Pledge  Agreement,  Pledgor  hereby  pledges and grants to Secured Party a
first  priority security interest in the following property (such property being
hereinafter  sometimes  called  the  "Collateral"):

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     (a)  100%  of  the  membership  interests (ownership interests) in Anadarko
          Petrosearch  (the  "Anadarko  LLC  Interests");

     (b)  100%  of  the  membership  interests  (ownership  interests)  in  TK
          Petrosearch, save and except the after-payout back-in interest of ___%
          of  the subsidiary president, T. Kelly Erwin (the "TK LLC Interests");

     (c)  100%  of the membership interests in Pledgor's other subsidiaries, now
          existing  or  hereafter  created,  which utilize Lender funds advanced
          under  the  Note  and  pursuant to the Revolving Credit Agreement; and

     (d)  all  products  and  proceeds  of  the  foregoing  Anadarko  and TK LLC
          Interests, including, without limitation, all revenues, distributions,
          dividends, stock dividends, securities and other property, rights, and
          interests  that  Pledgor is at any time entitled to receive on account
          of  the  same.

     Section  1.02.     OBLIGATIONS  SECURED.  The  Collateral  shall secure the
                        --------------------
following  obligations,  indebtednesses,  and liabilities (all such obligations,
indebtednesses,  and  liabilities  being  hereinafter  sometimes  called  the
"Obligations"):

     (a)     the  obligations  and  indebtedness  of  Pledgor  to  Secured Party
     evidenced  by  the  Revolving  Credit  Agreement  and  Note;  and

     (c)     all  extensions,  renewals,  and  modifications  of  any  of  the
     foregoing.

                                   ARTICLE II

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

     Pledgor represents and warrants to Secured Party that:

     Section  2.01.     TITLE.  Pledgor  owns,  and  with  respect to Collateral
                        ------
acquired  after the date hereof, Pledgor will own, legally and beneficially, the
Collateral  free  and  clear  of  any lien, security interest, pledge, claim, or
other  encumbrance  or  any  right  or option on the part of any third person to
purchase or otherwise acquire the Collateral or any part thereof, except for the
security  interest  granted  hereunder  and otherwise referenced in Section 1.01
above.  The  Collateral  is  not  subject  to  any  restriction  on  transfer or
assignment  except  for  compliance with applicable federal and state securities
laws and regulations promulgated thereunder.  Pledgor has the unrestricted right
to pledge the Collateral as contemplated hereby.  All of the Collateral has been
duly  and  validly  issued  and  is  fully  paid  and  nonassessable.

     Section  2.02.     CONFLICTS  WITH  OTHER  AGREEMENTS.  The  execution,
                        ----------------------------------
delivery,  and performance of this Pledge Agreement by Pledgor will not conflict
with, result in a breach of, or constitute a default under the provisions of any
indenture,  mortgage,  deed  of  trust,  security

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agreement, or other instrument or agreement or any judgment, decree, order, law,
statute or other governmental rule or regulation applicable to Pledgor or any of
his  properties.

     Section  2.03.     LITIGATION.  There  is  no  litigation  or  governmental
                        ----------
proceeding  pending or threatened against Pledgor or any of his properties which
if  adversely  determined would have a material adverse effect on the Collateral
or  the  financial  condition,  operations,  or  business  of  Pledgor.

     Section  2.04.     FIRST  PRIORITY  PERFECTED  SECURITY  INTEREST.  Upon
                        ----------------------------------------------
delivery  of the Collateral to Secured Party or to its escrow agent, this Pledge
Agreement  shall  create  a  first  priority  perfected security interest in the
Collateral.

                                   ARTICLE III

                       AFFIRMATIVE AND NEGATIVE COVENANTS
                       ----------------------------------

     Pledgor  covenants and agrees with Secured Party that until the Obligations
are  satisfied  and  performed  in  full:

     Section 3.01.     DELIVERY OF COLLATERAL.  Pledgor shall, concurrently with
                       -----------------------
the  execution  hereof  deliver  all certificates or instruments representing or
evidencing  the  Collateral  to Secured Party.  Such certificates or instruments
shall  be  in suitable form for transfer by delivery, or shall be accompanied by
duly  executed  instruments  of transfer or assignment in blank, all in form and
substance satisfactory to the Secured Party.  Upon the occurrence and during the
continuance  of  an  Event  of  Default (as defined in Section 5.01 hereof), the
                                                       ------------
Secured  Party  shall  have the right, at any time in its discretion and without
notice  to the Pledgor, to transfer to or to register in the name of the Secured
Party  or  any  of  its nominees any or all of the Collateral.  In addition, the
Secured  Party  shall  have  the  right  at any time to exchange certificates or
instruments  representing  or  evidencing  collateral  for  certificates  or
instruments  of  smaller  or  larger  denominations.

     Section  3.02.     ENCUMBRANCES.  Pledgor  shall  not  create,  permit,  or
                        ------------
suffer  to  exist,  and  shall defend the Collateral against, any lien, security
interest,  or other encumbrance on the Collateral except the pledge and security
interest  of  Secured  Party  hereunder  and  the  pledge and security interests
referenced  in  Section  1.01  above,  and  shall defend Pledgor's rights in the
Collateral  and  Secured Party's security interest in the Collateral against the
claims  of  all  persons.

     Section  3.03.     SALE  OF COLLATERAL.  Pledgor shall not sell, assign, or
                        -------------------
otherwise  dispose  of  the  Collateral  or  any  part thereof without the prior
written  consent  of  Secured  Party.  Provided, however, Pledgor shall have the
right  to  exchange  the LLC Interests, or part thereof, for stock in a publicly
traded  company  and  to thereafter substitute the publicly traded stock for the
Collateral  so  exchanged.  Pledgor  is  further  authorized to proceed with its
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  Pledgor's  oil  and  gas  properties.

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     Section  3.04.     FURTHER  ASSURANCES.  At any time and from time to time,
                        -------------------
upon  the  request of Secured Party, and at the sole expense of Pledgor, Pledgor
shall  promptly  execute  and deliver all such further instruments and documents
and take such further action as Secured Party may deem necessary or desirable to
preserve  and  perfect its security interest in the Collateral and carry out the
provisions and purposes of this Pledge Agreement, including, without limitation,
the  execution  and  filing  of  such  financing statements as Secured Party may
require.  A carbon, photographic, or other reproduction of this Pledge Agreement
or  of any financing statement covering the Collateral or any part thereof shall
be  sufficient  as  a  financing  statement  and  may  be  filed  as a financing
statement.

     Section  3.05.     OBLIGATIONS.  Pledgor  shall duly and punctually pay and
                        -----------
perform  the  Obligations,  including  without  limitation,  the  obligations of
Pledgor  under  this  Pledge  Agreement.

     Section  3.06.     NOTIFICATION.  Pledgor  shall  promptly  notify  Secured
                        ------------
Party  of  (i)  any  lien,  security  interest,  encumbrance  or  claim  made or
threatened  against  the Collateral, (ii) any material change in the Collateral,
including,  without  limitation,  any  material  decrease  in  the  value of the
Collateral,  and  (iii)  the  occurrence  or  existence  of any Event of Default
(hereinafter  defined)  or the occurrence or existence of any condition or event
that,  with  the giving of notice or lapse of time or both, would be an Event of
Default.

     Section  3.07.     COMPLIANCE  WITH  LAWS.  Pledgor  shall  comply with all
                        ----------------------
applicable  laws,  rules,  regulations,  and orders of any court or governmental
authority.

                                   ARTICLE IV

                       RIGHTS OF SECURED PARTY AND PLEDGOR
                       -----------------------------------

     Section  4.01.     VOTING  RIGHTS.  So  long  as  no  Event  of Default (as
                        --------------
hereinafter  defined)  shall  have  occurred  and  be continuing and this Pledge
Agreement  is  in  force  and  effect, Pledgor shall be entitled to exercise any
voting  and  other consensual rights relating or pertaining to the Collateral or
any part thereof.  Upon the occurrence and during the continuance of an Event of
Default,  at  the  sole  option  of  the  Secured Party, all voting rights shall
thereupon  become  vested  in  the  Secured  Party  or  its  assignee, who shall
thereupon  have  the  sole  right to exercise or to assign the right to exercise
such  voting  and  other  consensual  rights.

     Section  4.02.     PERFORMANCE  BY  SECURED PARTY OF PLEDGOR'S OBLIGATIONS.
                        -------------------------------------------------------
If  Pledgor  fails  to  perform  or  comply with any of the agreements contained
herein  and  Secured  Party itself shall cause performance of or compliance with
such agreement, the expenses of Secured Party, together with interest thereon at
the  rate  of  12%  per  annum,  shall be payable by Pledgor to Secured Party on
demand and shall constitute Obligations secured by this Pledge Agreement.

                                    ARTICLE V

                                     DEFAULT
                                     -------

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     Section 5.01.     EVENTS OF DEFAULT.  Each of the following shall be deemed
                       -----------------
an  "Event  of  Default":

     (a)     Pledgor  shall  fail to pay when due, within any applicable notice,
     cure  or  grace  period,  the  Obligations  or  any  part  thereof.

     (b)     Any  representation  or  warranty made or deemed made by Pledgor in
     this  Pledge  Agreement or in any certificate, report, notice, or statement
     furnished  at any time in connection with this Pledge Agreement or the Loan
     Documents is false, misleading, or erroneous in any material respect on the
     date  when  made  or  deemed  to  have  been  made.

     (c)     Pledgor  shall  fail  to  perform,  observe,  or  comply  with  any
     covenant,  agreement  or  term  contained in this Pledge Agreement and such
     failure  continues, without cure, for twenty (20) days after written notice
     to  Pledgor.

     (d)     Pledgor  or  any  issuer  of  the Collateral (or any of same) shall
     commence  a  voluntary  proceeding  seeking liquidation, reorganization, or
     other  relief  with  respect  to  itself or its debts under any bankruptcy,
     insolvency  or  other similar law now or hereafter in effect or seeking the
     appointment of a trustee, receiver, liquidator, custodian, or other similar
     official  of  it  or a substantial part of its property or shall consent to
     any  such  relief or to the appointment of or taking possession by any such
     official in an involuntary case or other proceeding commenced against it or
     shall  make  a  general  assignment  for  the benefit of creditors or shall
     generally  fail  to  pay  its  debts  as  they become due or shall take any
     corporate  action  to  authorize  any  of  the  foregoing.

     (e)     An involuntary proceeding shall be commenced against Pledgor or any
     issuer  of  the  Collateral  seeking  liquidation, reorganization, or other
     relief  with respect to it or its debts under any bankruptcy, insolvency or
     other  similar law now or hereafter in effect or seeking the appointment of
     a  trustee, receiver, liquidator, custodian or other similar official of it
     or  a  substantial  part  of  its property, and such involuntary proceeding
     shall  remain  undismissed  and  unstayed for a period of thirty (30) days.

     Section 5.02.     RIGHTS AND REMEDIES.  Upon the occurrences of an Event of
                       -------------------
Default, and subject to the notice and opportunity to cure required by the Note,
Secured  Party  shall  have  the  following  rights  and  remedies:

          (i)     Secured  Party may declare the Obligations or any part thereof
     immediately  due  and  payable,  without  demand,  presentment,  notice  of
     dishonor, notice of acceleration, notice of intent to accelerate, notice of
     intent to demand, protest, or any other notice whatsoever, all of which are
     hereby  expressly  waived  by  Pledgor;  provided,  however,  that upon the
     occurrence  of an Event of Default under Section 5.01(d) or Section 5.01(e)
     of  this Pledge Agreement, the Obligations shall become immediately due and
     payable  without  demand,  presentment,  notice  of  dishonor,  notice  of
     acceleration,  notice  of  intent  to

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     accelerate,  notice  of  intent  to  demand,  protest,  or any other notice
     whatsoever, all of which are hereby expressly waived by Pledgor.

          (ii)     In  addition  to  all  other  rights  and remedies granted to
     Secured  Party  in  this  Pledge  Agreement  and in any other instrument or
     agreement  securing,  evidencing,  or  relating to the Obligations, Secured
     Party  shall  have  all of the rights and remedies of a secured party under
     the  Uniform  Commercial Code in force in the State of Texas as of the date
     of  this  Agreement.  Without  limiting  the  generality  of the foregoing,
     Secured  Party  may  (A)  without  demand  or  notice  to Pledgor, collect,
     receive, or take possession of the Collateral or any part thereof, (B) sell
     or otherwise dispose of the Collateral, or any part thereof, in one or more
     parcels  at  public or private sale or sales, at Secured Party's offices or
     elsewhere,  for cash or on credit, and/or (C) bid and become a purchaser at
     any  sale free of any right or equity of redemption in Pledgor, which right
     or  equity  is  hereby  expressly  waived and released by Pledgor. Upon the
     request of Secured Party, Pledgor shall assemble the Collateral and make it
     available to Secured Party at any place designated by Secured Party that is
     reasonably  convenient  to  Pledgor  and Secured Party. Pledgor agrees that
     Secured  Party  shall  not  be  obligated  to  give more than five (5) days
     written  notice  of  the  time  and place of any public sale or of the time
     after  which  any  private  sale  may take place and that such notice shall
     constitute  reasonable  notice of such matters. Pledgor shall be liable for
     all expenses of retaking, holding, preparing for sale, or the like, and all
     attorneys'  fees and other expenses incurred by Secured Party in connection
     with  the  collection  of  the  Obligations  and the enforcement of Secured
     Party's  rights under this Pledge Agreement, all of which expenses and fees
     shall  constitute  additional Obligations secured by this Pledge Agreement.
     Secured  Party may apply proceeds of the Collateral against the Obligations
     in  such  order and manner as Secured Party may elect. Pledgor shall remain
     liable for any deficiency if the proceeds of any sale or disposition of the
     Collateral  are  insufficient  to  pay  the  Obligations.

          (iii)     Secured Party may cause any or all of the Collateral held by
     it to be transferred into the name of Secured Party or the name or names of
     Secured  Party's  nominee  or  nominees.

          (iv)     Secured Party shall be entitled to receive all cash dividends
     payable  in  respect  of  the  Collateral.

          (v)     Secured Party shall have the right, but shall not be obligated
     to,  exercise  or  cause  to  be  exercised all voting rights and corporate
     powers  in  respect of the Collateral, and Pledgor shall deliver to Secured
     Party,  if  requested by Secured Party, irrevocable proxies with respect to
     the  Collateral  in  form  satisfactory  to  Secured  Party.

          (vi)     Pledgor  hereby  acknowledges and confirms that Secured Party
     may  be  unable  to effect a public sale of any or all of the Collateral by
     reason  of certain prohibitions contained in the Securities Act of 1933, as
     amended,  and  applicable  state  securities  laws  and may be compelled to
     resort  to  one  or  more  private  sales  thereof to a restricted group of

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<PAGE>
     purchasers  who  will be obligated to agree, among other things, to acquire
     any  shares  of  the  Collateral  for  their  own  respective  accounts for
     investment  and  not with a view to distribution or resale thereof. Pledgor
     further  acknowledges and confirms that any such private sale may result in
     prices or other terms less favorable to the seller than if such sale were a
     public  sale  and,  notwithstanding such circumstances, agree that any such
     private sale shall be deemed to have been made in a commercially reasonable
     manner, and Secured Party shall be under no obligation to take any steps in
     order  to  permit the Collateral to be sold at a public sale. Secured Party
     shall  be  under no obligation to delay a sale of any of the Collateral for
     any  period of time necessary to permit any issuer thereof to register such
     Collateral for public sale under the Securities Act of 1933, as amended, or
     under  applicable  state  securities  laws.  The  Pledgor hereby waives any
     claims  against  the  Secured  Party arising by reason of the fact that the
     price  at  which the Collateral may have been sold at such private sale was
     less  than the price which might have been obtained at a public sale or was
     less than the Obligations even if the Secured Party accepts the first offer
     received  and does not offer the Collateral to more than one offeree (other
     than  the  Secured  Party  or  an  affiliate  of  the  Secured  Party).

          (vii)     On  any  sale  of  the  Collateral,  Secured Party is hereby
     authorized  to  comply  with  any limitation or restriction compliance with
     which  is  necessary,  in  the view of Secured Party's counsel, in order to
     avoid  any  violation  of applicable law or in order to obtain any required
     approval  of  the  purchaser  or  purchasers by any applicable governmental
     authority.

          (viii)     Neither  Pledgor  nor  any  Manager  of  TK  Petrosearch or
     Anadarko  Petrosearch  shall  vote  in favor of or assent to the filing for
     bankruptcy  protection  or  any  other proceeding without the prior written
     consent  of  Secured  Party.

     Section  5.03.     SECURITY  INTEREST  ABSOLUTE.  All rights of the Secured
                        -----------------------------
Party  hereunder,  the  interest,  and all obligations of the Pledgor hereunder,
shall  be  absolute  and  unconditional  irrespective  of:

          (a)     any  lack  of validity or enforceability of any loan document,
     any agreement with respect to any of the Obligations or any other agreement
     or  instrument  relating  to  any  of  the  foregoing;

          (b)     any  change  in the time, manner or place of payment of, or in
     any  other term of, all or any of the Obligations or any other amendment or
     waiver  of or any consent to any departure from this Agreement or any other
     agreement  or  instrument;  or

          (c)     any  sale,  exchange,  release  or  nonperfection of any other
     collateral,  or  any  release  of any guarantor or any person liable in any
     manner  for  the  collection  of any of the Obligations or any amendment or
     waiver  of  or consent to or departure from any guaranty, for all or any of
     the  Obligations.

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<PAGE>
     Section  5.04.     WAIVER  AND  CONSENT.
                        ---------------------

          (a)     Pledgor  consents and agrees that the Secured Party may in its
     absolute  and  sole  discretion, at any time and from time to time, without
     notice  or  demand,  and  without  affecting the enforceability or security
     hereof:  (i)  create  new Obligations or supplement, modify, amend, extend,
     increase,  decrease,  renew, accelerate or otherwise change the Obligations
     or  any  of  their  terms;  (ii)  supplement,  modify,  amend, or waive any
     provision of, or enter into or give any agreement, approval or consent with
     respect  to  any  of  the  Loan  Documents;  (iii) accept new or additional
     instruments,  documents or agreements in exchange for or relative to any of
     the  Obligations  or  any  part  thereof;  (iv)  accept  payments  on  the
     Obligations; (v) receive and hold additional security or guaranties for the
     Obligations  or any part thereof; (vi) release, reconvey, terminate, waive,
     abandon,  fail  to  perfect, subordinate, exchange, substitute, transfer or
     enforce  any  security  or guarantees and apply any security and direct the
     order or manner of sale thereof; (vii) release any person from any personal
     liability  with  respect to the Obligations or any part thereof; and (viii)
     settle,  release on terms satisfactory to the Secured Party or by operation
     of  applicable  laws  or otherwise liquidate or enforce any Obligations and
     any  security or guaranty in any manner, and consent to the transfer of any
     security.

          (b)     Upon  the occurrence and during the continuance of an Event of
     Default,  and subject to the notice and opportunity to cure required by the
     Note,  the  Secured Party may enforce this Agreement independently from any
     other  loan  document  and  independently  of any other remedy, security or
     guaranty  the Secured Party at any time may have or hold in connection with
     the  Obligations,  and  it  shall not be necessary for the Secured Party to
     marshal  assets  in  favor of the Pledgor or any other person or to proceed
     upon  or  against  and/or  exhaust  my  other  security  or  remedy  before
     proceeding to enforce this Agreement. The Pledgor expressly agrees that the
     Secured  Party  may  proceed  against  any  or  all  of  the  Collateral or
     guaranties for the Obligations in such order and in such manner as it shall
     determine in its sole and absolute discretion. The Secured Party may file a
     separate  action  or actions against the Pledgor, whether action is brought
     or  prosecuted  with  respect  to  any  other security or against any other
     person,  or  whether  any  other  person  is  joined  in any such action or
     actions.  The Pledgor agrees that the Secured Party and other guarantor, if
     any,  of  the  Obligations  ("Other Guarantor") may deal with each other in
     connection  with  the  Obligations  or otherwise, or alter any contracts or
     agreements  now  or hereafter existing between or among any of them, in any
     manner  whatsoever,  all  without  in  any  way  altering  or affecting the
     security of this Agreement. The Pledgor expressly waives the benefit of any
     statute(s)  of  limitations  affecting  its  liability  hereunder  or  the
     enforcement  of the Obligations or the Security Interest created or granted
     herein.  The  Secured  Party's  rights  hereunder  shall  be reinstated and
     revived,  and  the  enforceability  of  this Agreement shall continue, with
     respect  to  any amount at any time paid on account of the Obligations that
     thereafter  shall  be  required  to  be restored or returned by the Secured
     Party  upon  the bankruptcy, insolvency or reorganization of any Pledgor or
     otherwise,  all  as  though  such  amount  had  not been paid. The Security
     Interest created or granted herein and the enforceability of this Agreement
     at  all  times  shall  remain  effective  to  secure  the  full  amount

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     of all the Obligations even though the Obligations , or any part thereof or
     any  other  security  or  guaranty therefor, may be or hereafter may become
     invalid  or  otherwise  unenforceable  as  against  any Other Guarantor and
     whether  or  not  the  Pledgor  or  Other Guarantor shall have any personal
     liability  with  respect  thereto.

          (c)     The  Pledgor  expressly  waives  any  and  all defenses now or
     hereafter  arising  or  asserted  by  reason of (i) any disability or other
     defense  of  any  Other  Guarantor with respect to the Obligations (ii) the
     failure of priority of any security for the Obligations (iii) the cessation
     from  any  cause  whatsoever of the liability of any Other Guarantor (other
     than by reason of the full payment and performance of all Obligations, (iv)
     any  failure  of  the  Secured  Party  to  give  notice  of  sale  or other
     disposition  of any property securing the Obligations to the Pledgor or any
     other  person  or  any defect in any notice that may be given in connection
     with  any sale or disposition of any property securing the Obligations, (v)
     any  failure  of  the  Secured  Party  to  comply  with  applicable laws in
     connection  with the sale or other disposition of any property securing the
     Obligations,  including,  without  limitation,  any  failure of the Secured
     Party to conduct a commercially reasonable sale or other disposition of any
     property securing the Obligations , (vi) any act or omission of the Secured
     Party  or  others  that  directly  or  indirectly  results  in  or aids the
     discharge or release of any Other Guarantor or the Obligations or any other
     security  or  guaranty therefor by operation of law or otherwise, (vii) any
     law that provides that the obligation of a surety or guarantor must neither
     be  larger in amount nor in other respects more burdensome than that of the
     principal  or  that  reduces  a  surety's  or  guarantor's  obligation  in
     proportion to the principal's obligation, (viii) any failure of the Secured
     Party to file or enforce a claim in any bankruptcy or other proceeding with
     respect  to  any  person,  (xi)  the  election by the Secured Party, in any
     bankruptcy  proceeding  of any person, of the application or nonapplication
     of  Section  1111(b)(2)  of  the  United  States  Bankruptcy  Code, (x) any
     extension  of  credit  or  the  grant  of any lien under Section 364 of the
     United  States  Bankruptcy  Code,  (xi)  any  use  of cash collateral under
     Section  363  of  the United States Bankruptcy Code, (xii) any agreement or
     stipulation  with  respect  to  the provision of adequate protection in any
     bankruptcy  proceeding  of  any  person,  (xiii)  the  avoidance  of  any
     bankruptcy,  insolvency, reorganization, arrangement, readjustment of debt,
     liquidation  or  dissolution  proceeding  of  any  person,  including  any
     discharge  of,  or  bar  or  stay  against  collecting,  all  or any of the
     Obligations  in  or as a result of any such proceeding, or (xiv) any action
     taken  by the Secured Party that is authorized by this Section or any other
                                                            -------
     provision  of  any  Loan  document.

                                   ARTICLE VI

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

     Section  6.01.     EXPENSES;  INDEMNIFICATION.  Pledgor  agrees  to  pay on
                        --------------------------
demand  all  costs and expenses incurred by Secured Party in connection with the
preparation,  negotiation, and execution of the Pledge Agreement and any and all
amendments, modifications, and supplements hereto.  Pledgor agrees to pay and to
hold  Secured Party harmless from and against all excise, sales, stamp, or other
taxes  and  all  fees  payable  in  connection with this Pledge Agreement or the
transactions

                                        9
<PAGE>
contemplated  hereby,  and agree to hold Secured Party harmless from and against
any and all present or future claims or liabilities with respect to or resulting
from  Pledgor  performing or delaying in performing their obligations under this
Pledge  Agreement.

     Section  6.02.     NO  WAIVER; CUMULATIVE REMEDIES.  No failure on the part
                        -------------------------------
of  Secured  Party  to  exercise  and  no  delay in exercising, and no course of
dealing  with  respect  to,  any  right,  power,  or privilege under this Pledge
Agreement  shall  operate  as  a waiver thereof, nor shall any single or partial
exercise  of any right, power, or privilege under this Pledge 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 Pledge Agreement are
cumulative  and  not  exclusive  of  any  rights  and  remedies provided by law.

     Section  6.03.     SUCCESSORS  AND ASSIGNS.  This Pledge Agreement shall be
                        -----------------------
binding  upon  and  inure  to the benefit of Pledgor and Secured Party and their
respective  heirs,  successors,  and assigns, except that Pledgor may not assign
any  of  its rights or obligations under this Pledge Agreement without the prior
written  consent  of  Secured  Party,  which  consent  shall not be unreasonably
withheld.

     Section  6.04.     AMENDMENT;  ENTIRE  AGREEMENT.  This  Pledge  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  Pledge  Agreement may be amended or waived only by an
instrument  in  writing  signed  by  the  parties  hereto.

     Section  6.05.     NOTICES.  Any  notice,  consent,  or other communication
                        -------
required  or  permitted to be given under this Pledge Agreement to Secured Party
or Pledgor must be in writing and delivered in person or mailed by registered or
certified  mail,  return  receipt  requested,  postage  prepaid,  as  follows:

     To  Secured  Party:     Fortuna  Energy,  L.P.
                             1300  Bristol  Street
                             Newport  Beach,  CA  92660
                             FAX:  (949)  476-3098

     To  Pledgor:            Petrosearch  Corporation
                             4801  Woodway  Drive,  Suite  300E
                             Houston,  Texas  77056
                             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  6.06.     APPLICABLE LAW.  THIS PLEDGE AGREEMENT SHALL BE GOVERNED
                        --------------
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

                                       10
<PAGE>
     Section  6.07.     HEADINGS.  The headings, captions, and arrangements used
                        --------
in  this  Pledge  Agreement  are  for  convenience only and shall not affect the
interpretation  of  this  Pledge  Agreement.

     Section  6.08.     SURVIVAL  OF  REPRESENTATIONS  AND  WARRANTIES.  All
                        ----------------------------------------------
representations  and  warranties  made  in  this  Pledge  Agreement  or  in  any
certificate  delivered  pursuant hereto shall survive the execution and delivery
of this Pledge Agreement, and no investigation by Secured Party shall affect the
representations  and warranties or the right of Secured Party to rely upon them.

     Section  6.09.     COUNTERPARTS.  This  Pledge 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  6.10.     SEVERABILITY.  Any  provision  of  this Pledge 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 Pledge
Agreement,  and  any  such  prohibition  or unenforceability in any jurisdiction
shall  not  invalidate  or  render  unenforceable  such  provision  in any other
jurisdiction.

     Executed as of the Effective Date above written.

                                             "Pledgor"

                                        PETROSEARCH  CORPORATION

                                        By:  /s/
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                             "Secured  Party"

                                        FORTUNA  ENERGY,  L.P.

                                        By:  /s/
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                       11
<PAGE>
                          ACCEPTANCE AND ACKNOWLEDGMENT
                          -----------------------------

     Anadarko  Petrosearch  and  TK  Petrosearch  hereby  accept and acknowledge
Secured  Party  as  the  assignee,  pursuant  to  this  Pledge Agreement, of the
respective membership interests in Anadarko Petrosearch and TK Petrosearch owned
by  Pledgor  and each of Anadarko Petrosearch and TK Petrosearch agrees that the
interests  of  Secured  Party  shall  be  promptly  and  duly  registered in the
respective  books  and  records  of  Anadarko  Petrosearch  and  TK Petrosearch.

                                             ANADARKO  PETROSEARCH,  L.L.C.

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

                                             TK  PETROSEARCH,  L.L.C.

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

                                       12NOTE:    A  POWER  OF  SALE  HAS BEEN GRANTED IN THIS DEED OF TRUST/MORTGAGE.  A
--------------------------------------------------------------------------------
POWER OF SALE MAY ALLOW THE MORTGAGEE TO TAKE THE MORTGAGED PROPERTY AND SELL IT
--------------------------------------------------------------------------------
WITHOUT  GOING  TO  COURT  IN  A  FORECLOSURE  ACTION  UPON  DEFAULT  BY  THE
-----------------------------------------------------------------------------
GRANTOR/MORTGAGOR  UNDER  THIS  DEED  OF  TRUST/MORTGAGE
--------------------------------------------------------

NOTE:  THIS  DEED  OF  TRUST  COVERS  AFTER  ACQUIRED  PROPERTY INTERESTS OF THE
--------------------------------------------------------------------------------
GRANTOR
-------

                   MASTER DEED OF TRUST, MORTGAGE, ASSIGNMENT
                   ------------------------------------------
                      OF PRODUCTION, SECURITY AGREEMENT AND
                      -------------------------------------
                               FINANCING STATEMENT
                               -------------------
                       (Multi-State Oil and Gas Interests)

THE  STATE  OF________________    }
                                  }
COUNTY  OF____________________    }

     This  MASTER  DEED  OF  TRUST, MORTGAGE, ASSIGNMENT OF PRODUCTION, SECURITY
AGREEMENT  AND  FINANCING  STATEMENT  (herein  called  the  "Deed of Trust"), is
executed  as  of  October  ___,  2004  (the  "Effective Date"), from PETROSEARCH
CORPORATION,  A  TEXAS  CORPORATION,  JOINING  HEREIN  PRO  FORMA (herein called
"Petrosearch"),  whose address is 4801 Woodway Drive, Suite 300E. Houston, Texas
77056,  and  [____specified  entity  name________]  PETROSEARCH, L.L.C., A TEXAS
LIMITED  LIABILITY  COMPANY  (herein  called  "Grantor"),  whose address is 4801
Woodway  Drive,  Suite  300E,  Houston, Texas 77056, to BARRY L. RACUSIN (herein
called  "Trustee"),  whose  address  is  Racusin  & Wagner, L.L.P., 3100 Phoenix
Tower, 3200 Southwest Freeway, Houston, Texas  77027, for the benefit of FORTUNA
ENERGY,  L.P.,  A  CALIFORNIA  LIMITED  PARTNERSHIP ("Lender" or "Beneficiary").

                              W I T N E S S E T H:
                              -------------------

     That  Petrosearch  and Grantor, for a sufficient consideration received and
acknowledged,  does  hereby MORTGAGE, GRANT, BARGAIN, SELL, ASSIGN, TRANSFER and
CONVEY  unto  Trustee  and  to Trustee's successors in this trust, the following
described  real  and  personal  property,  rights, titles, interests and estates
(herein  collectively  called  the  "Covered  Properties"),

          (A)     The  aggregate  interests  of  Grantor  now owned or hereafter
     acquired  in  the  oil  and  gas  and/or  the  oil,  gas and mineral leases
     (herein  sometimes  called  the "Leases"), described in Exhibit "A" hereto,
                                                             -----------
     together  with  all of Grantor's right, title and interest in, to and under
     any  land  described or referred to in Exhibit "A" or described or referred
                                            -----------
     to  in  any  of  the Leases described or referred to in such Exhibit "A" or
                                                                  -----------
     hereafter  acquired  by Grantor in the County where the Leases are situated
     (the "Lands");

<PAGE>
          (B)     All  of  Grantor's  rights,  titles, interests and estates now
     owned  or  hereafter acquired in and to (i) the properties now or hereafter
     pooled  or  unitized with the Leases; (ii) all presently existing or future
     unitization, communitization, pooling agreements and declarations of pooled
     units  and  the  units  created thereby (including, without limitation, all
     units  created  under  orders, regulations, rules or other official acts of
     any  Federal,  State  or  other  governmental  body  or  agency  having
     jurisdiction)  which may affect all or any portion of the Leases; (iii) all
     documents, files and information pertaining to the Leases of every kind and
     character  including  without limitation, all title and lease file records,
     seismic  data and analyses, engineering data, maps, logs, cores, test data,
     invoices,  drilling  contracts,  field  services  agreements,  operating
     agreements, farmout agreements, contracts and other agreements which relate
     to  any of the Leases or interests in the Leases or to the ownership and/or
     operation  of  the  Leases  or  the production, sale, purchase, exchange or
     processing of the "Hydrocarbons" (hereinafter defined) from or attributable
     to  such  Leases  or  interests;  and (iv) the Leases even though Grantor's
     interests  therein  be  incorrectly described or a description of a part or
     all  of  such  Leases  or  Grantor's  interests  therein  be  omitted;

          (C)     All  of  Grantor's  rights,  titles, interests and estates now
     owned  or  hereafter  acquired  in  and  to  all  oil, gas, casinghead gas,
     condensate,  distillate,  liquid hydrocarbons, gaseous hydrocarbons and all
     products  refined  therefrom  and  all  other minerals (herein collectively
     called the "Hydrocarbons") in and under and which may be produced and saved
     from or attributable to the Leases, the Lands covered thereby and Grantor's
     interests  therein,  including  all  oil  in  tanks  and all rents, issues,
     profits, proceeds, products, revenues and other income from or attributable
     to  the  Leases,  the Lands covered thereby and Grantor's interests therein
     which  are  subjected or required to be subjected to the liens and security
     interests of this Deed of Trust;

          (D)     All  tenements, hereditaments, appurtenances and properties in
     anywise  appertaining,  belonging,  affixed  or  incidental  to the Leases,
     properties,  rights, titles, interests and estates described or referred to
     in  subparagraphs  (b)  and  (c) above, which are owned as of the Effective
     Date  or  hereafter acquired by Grantor, including, without limitation, any
     and  all  property,  real  or personal, now owned or hereafter acquired and
     situated  upon,  used,  held  for  use,  or  useful  in connection with the
     operating, working or development of any of such Leases or the marketing of
     Hydrocarbons  produced  therefrom  (excluding  drilling  rigs,  automotive
     equipment  or other personal property which may be on such premises for the
     purpose  of  drilling  a  well  or  for  other  similar temporary uses) and
     including any and all oil wells, gas wells, injection wells or other wells,
     buildings,  structures,  field  separators, liquid extraction plants, plant
     compressors,  pumps,  pumping  units,  field  gathering systems, pipelines,
     tanks  and  tank  batteries, fixtures, valves, fittings, pipes, pipe stands
     and  racks,  machinery  and  parts,  engines,  boilers,  meters, apparatus,
     equipment,  appliances,  tools,  implements, cables, wires, towers, casing,
     tubing  and  rods,  surface leases, rights-of-way, easements and servitudes
     together  with  all  additions, substitutions, replacements, accessions and
     attachments  to  any  and  all of the foregoing described items or material
     ("properties");

          (E)     Any  property,  real  or  personal, that may from time to time
     hereafter  by

<PAGE>
     delivery  or  by  written  instrument  of any kind be subjected to the lien
     or  security  interests hereof by Grantor or by anyone on Grantor's behalf;
     and  the  Trustee  is  hereby authorized to receive the same at any time as
     additional security hereunder; and

          (F)     All  of  the  rights,  titles  and  interests  of every nature
     whatsoever  owned as of the Effective Date or hereafter acquired by Grantor
     in  and  to  the  Lands,  Leases, properties, rights, titles, interests and
     estates  and  every part and parcel thereof, including, without limitation,
     said  Lands,  Leases,  properties, rights, titles, interests and estates as
     the same may be enlarged by the discharge of any payments out of production
     or  by  the removal of any charges or "Permitted Encumbrances" (hereinafter
     defined)  to  which  any of said Lands, Leases, properties, rights, titles,
     interests  or  estates are subject, or otherwise; together with any and all
     renewals  and  extensions of any of said Lands, Leases, properties, rights,
     titles, interests or estates; and all contracts and agreements supplemental
     to  or  amendatory  of  or in substitution for the contracts and agreements
     described  or  mentioned  above,  including  without limitation any and all
     additional  interests  of  any kind hereafter acquired by Grantor in and to
     said  Lands,  Leases,  properties,  rights,  titles,  interests or estates;

in trust, however, for the purposes, uses and benefits hereinafter set out.

     TO  HAVE  AND  TO  HOLD  the Covered Properties unto Trustee, and Trustee's
successors  and  assigns,  forever,  in accordance with the terms and provisions
hereof; and Petrosearch and Grantor hereby covenants, warrants and represents to
Lender  that Grantor is the lawful owner of the Covered Properties, that Grantor
has  good  right  to  sell,  convey,  transfer,  assign and mortgage the Covered
Properties,  and  that  Grantor will warrant and forever defend the same against
the  claims  of all persons whomsoever lawfully claiming or to claim the same or
any  part  thereof.

                                    ARTICLE I
                                    ---------

                              INDEBTEDNESS SECURED
                              --------------------

     1.1     The  foregoing  conveyance  is  made in trust to secure and enforce
prompt and full payment and performance of Grantor and/or Petrosearch of each of
the  following  (herein  collectively  called  the  "Indebtedness"):

          (a)     That  certain Revolving Credit Note (the "Note") dated of even
     date  herewith  executed  by  Petrosearch,  as  Borrower,  in the principal
     sum  of EIGHTEEN MILLION AND AND NO/100 DOLLARS ($18,000,000.00) payable to
     the  order  of  the Lender, subject to draw down limitations under the Note
     more  particularly  described in that certain Revolving Credit Agreement of
     even  date  herewith  between  Petrosearch,  Grantor  and Lender (the "Loan
     Agreement");

          (b)     All  of the terms, provisions and obligations set forth in the
     Loan  Agreement,  the  Note,  this  Deed of Trust, any supplemental Deed of
     Trust,  any  Pledge  Agreement  (collectively, the "Loan Documents") or any
     Assignment of Overriding Royalty Interest;

<PAGE>
          (c)     Any  and all notes or instruments given in substitution for or
     in  renewal,  extension  and  modification,  in  whole  or  in part, of any
     Loan Document; and

          (d)     all  indebtedness  incurred  or  arising  pursuant  to  the
     provisions  of  and/or  the  enforcement  of  any  Loan  Document.

     1.2     Petrosearch  and  Grantor authorizes extensions and renewals of any
and  all  of  the Indebtedness and substitutions of the evidence thereof with or
without  notice  to  Petrosearch  and/or  Grantor,  and  Petrosearch and Grantor
specifically  waives  presentment,  protest,  notices  of dishonor, intention to
accelerate,  acceleration and any extensions or renewals of the Indebtedness, in
whole  or  in  part.

                                   ARTICLE II
                                   ----------

                    REPRESENTATIONS, WARRANTIES AND COVENANTS
                    -----------------------------------------

     2.1     Grantor  and Petrosearch represent and warrant to, and covenant and
agree  with, Trustee and Lender (said term as used herein being intended to mean
Fortuna  Energy,  L.P. or any other holder or holders, from time to time, of the
Indebtedness  or  any  part  thereof  or any interest therein), and with each of
them,  so  long  as  the  Indebtedness  or  any  part thereof remains unpaid, as
follows:

          (a)     Grantor  or,  to  the  best  of Grantor's knowledge, Grantor's
     predecessor  or  predecessors  in  title to each of the Covered Properties,
     have  properly  and  timely  performed  whatever  may  be  required  by the
     provisions  of  each  of  the  Leases,  respectively,  (or by any contract,
     assignment  or  conveyance  under  which  Grantor holds title to any of the
     Covered  Properties)  to  perpetuate  the Leases and to perfect or maintain
     Grantor's  title.  Grantor  shall  pay and discharge or cause to be paid or
     discharged  all rentals, delay rentals, royalties, production payments, and
     indebtedness  required  to  be  paid by Grantor, and perform or cause to be
     performed, each and every act, matter, or thing required of Grantor by each
     and  all  of  the  Leases,  assignments,  deeds,  subleases,  contracts and
     agreements  in  any way relating to the Covered Properties and do all other
     things  necessary  of  Grantor  to  keep  unimpaired  the rights of Grantor
     thereunder  and  to  prevent  the forfeiture thereof or default thereunder.

          (b)     Grantor  shall  immediately  notify  Lender  in  the  event of
     institution  of  any  suit  for  the  cancellation  of  or  in  any  manner
     materially and adversely affecting any of the Leases or any Land covered or
     purported  to  be  covered  thereby  or  the  Land  or the title of Grantor
     thereto.

          (c)     Grantor  shall  immediately  notify Lender of any voluntary or
     involuntary  lien  placed  against,  or  any  security interest created in,
     any  of  the Covered Properties, respectively whether for indebtedness owed
     or asserted to be owed by Grantor or by any other party.

<PAGE>
          (d)     Grantor  shall  pay  and  discharge  promptly  all  taxes,
     assessments,  and  governmental  charges  or  levies  imposed  upon Grantor
     or  upon  the income of Grantor or against any of the Covered Properties or
     Hydrocarbons as well as all claims of any kind (including claims for labor,
     materials,  supplies  and  rent)  which,  if unpaid, might result in a lien
     being  claimed  upon  any or all of the Covered Properties or Hydrocarbons;
     provided,  however, that Grantor shall not be required to pay any such tax,
     assessment,  charge, levy or claim if the amount, applicability or validity
     thereof  shall  currently  be  contested  in  good  faith  by  appropriate
     proceedings diligently conducted in compliance with the laws and procedures
     of  the taxing jurisdiction under which the contest is filed and if Grantor
     shall  have  set  up  reserves  therefor  adequate under generally accepted
     accounting principles.

          (e)     Grantor  shall  operate  or  cause  to be operated all Covered
     Properties  in  a  careful  and  efficient  manner  in  accordance with the
     practice  of the industry and in compliance with all applicable laws, rules
     and  regulations,  and,  in  the case of the Leases, in compliance with all
     applicable proration and conservation laws of the State in which the Leases
     are situated, and all applicable laws, rules and regulations of every other
     agency  and  authority  from  time  to  time  constituted  to  regulate the
     development  and  operation  of  the  Leases and the production and sale of
     Hydrocarbons  therefrom; provided, however, Grantor shall have the right to
     contest  in  good  faith  in compliance with the laws and procedures of the
     regulatory  authority  or  jurisdiction under which the contest is filed by
     appropriate  proceedings,  the applicability or lawfulness of any such law,
     rule  or  regulation  and,  pending  such  contest,  may  defer  compliance
     therewith,  so  long  as  such  deferment  shall  not  subject  the Covered
     Properties or any part thereof to foreclosure or loss.

          (f)     Petrosearch shall pay the Note according to the reading, tenor
     and  effect  thereof,  and  shall  do  and  perform every act and discharge
     all  of  the  obligations  provided  to  be  performed  and  discharged  by
     Petrosearch  under  the Note and under this instrument at the time or times
     and in the manner specified.

          (g)     Grantor  will  advise  Lender  immediately  of  (i)  any lien,
     privilege,  security  interest,  encumbrance  or  claim  made  or  asserted
     against all or any part of the Covered Properties, (ii) any material change
     in  the  composition  of  any  of  the  Covered  Properties  and  (iii) the
     occurrence  of  any  other  event which would have a material effect on the
     aggregate  value  of  the  Covered  Properties  or on the lien and security
     interest created hereunder or under any of the Loan Documents.

          (h)     Grantor  will  immediately  notify Lender of any event causing
     loss  or  depreciation  in  value  of the Covered Properties and the amount
     of  such  loss  or depreciation other than loss attributed to the customary
     fluctuations in market prices for hydrocarbons, from time to time.

     2.2     Grantor  will  not,  without first obtaining the written consent of
Lender  (a)  sell,  transfer,  all  or any part of the Covered Properties or (b)
mortgage,  assign,  pledge,  exchange  or  otherwise dispose of, hypothecate, or
encumber, enter into any contract agreeing to sell,  transfer, mortgage, pledge,
assign  or  otherwise  convey  all  or  any  part  or interest, whether legal or
equitable,

<PAGE>
of  the Covered Properties, or (c) create any lien or encumbrance subordinate to
this  Deed  of Trust, or (d) grant any easement, right-of-way or any other right
whatsoever  materially affecting the value of the collateral with respect to the
Covered  Properties  (all  and  any  of  the  above  herein  collectively called
"Transfers"),  irrespective  of  whether  any  such  Transfers  are evidenced by
written  instruments, and irrespective if such a written instrument is filed for
record.

     2.3     If  Grantor  or  Petrosearch  fail(s)  to  perform  any  act  which
hereunder  it  is  required to perform or to pay any money which hereunder it is
required  to  pay, Trustee and Lender or either of them, may perform or cause to
be  performed  such  act  or  pay  such  money.  Petrosearch will, upon request,
promptly  reimburse  Lender  for  all  amounts expended, advanced or incurred by
Lender to satisfy any obligation of Petrosearch or Grantor under this instrument
or  to  protect  the Covered Properties plus interest at the Note rate plus 6.0%
interest  per  annum  (the  "Note  Default  Rate").

                                   ARTICLE III
                                   -----------

                           ABSOLUTE ASSIGNMENT OF RUNS
                           ---------------------------

     3.1     To  provide  a  source  of  payment  of  the  Indebtedness  and  as
cumulative  of any and all rights and remedies herein provided for, effective as
of  7:00 a.m. Central Daylight Time on the Effective Date hereof, Grantor hereby
unconditionally  and  absolutely  bargains, sells, transfers, assigns, sets over
and  conveys  unto  Lender,  all  the  Hydrocarbons,  together with the proceeds
derived  from the sale thereof (such proceeds being hereinafter called "proceeds
of  runs"),  and  further  together  with  the immediate and continuing right to
collect  and  receive the same.  Grantor directs and instructs each purchaser of
the  Hydrocarbons  to immediately pay to Lender upon Lender's request all of the
proceeds  of  runs until such time as such purchaser has been furnished evidence
that  all Indebtedness has been paid and that the lien evidenced hereby has been
released.  Grantor  hereby  indemnifies  and  agrees  to  hold  the purchaser of
Hydrocarbons  harmless from any and all liabilities, actions, claims, judgments,
costs,  charges  and  attorneys' fees incurred in connection with any payment of
proceeds  of  runs  to Lender.  Grantor authorizes Lender to receive and collect
all  sums  of  money  derived from the proceeds of runs, and no purchaser of the
Hydrocarbons shall have the responsibility for the application of any funds paid
to  Lender.

     3.2     Independent  of  the  foregoing  provisions  and authorities herein
granted,  Grantor  agrees  to  execute  and deliver any and all transfer orders,
division  orders  and  other instruments that may be requested by Lender or that
may  be  required  by  the  purchaser  of  the  Hydrocarbons  for the purpose of
effectuating  payment  for  the  proceeds  of  runs  to  Lender.

     Without  limitation  upon  any  of  the  foregoing, Petrosearch and Grantor
hereby  constitute  and  appoint  Lender  as Petrosearch's and Grantor's special
attorney-in-fact  (with full power of substitution, either generally or for such
periods  or  purposes  as  Lender  may from time to time prescribe) in the name,
place  and  stead  of  Petrosearch  and/or  Grantor  to do any and every act and
exercise  any  and every power that Petrosearch and/or Grantor might or could do
or exercise personally with respect to all Hydrocarbons and Hydrocarbon proceeds
of  runs (the same having been assigned by Grantor to Lender pursuant to Section
3.1  hereof),  expressly  inclusive,  but  not  limited to, the right, power and
authority  to:

<PAGE>
          (a)     Execute  and deliver in the name of Petrosearch and/or Grantor
     any  and  all transfer orders, division orders, letters in lieu of transfer
     orders,  indemnifications,  certificates  and  other  instruments  of every
     nature  that  may be requested or required by any purchaser of Hydrocarbons
     from any of the Covered Properties for the purposes of effectuating payment
     of  the  proceeds  of  runs  to  Lender  or which Lender may otherwise deem
     necessary  or  appropriate  to  effect  the  intent  and  purposes  of  the
     assignment  contained  in  Section  3.1;  and

          (b)     (If,  under  any  product sales agreements other than division
     order  or  transfer  orders,  any  proceeds of runs are required to be paid
     by  the  purchaser  to  Grantor  such  that  under such existing agreements
     payment  cannot  be  made  of such proceeds of runs to Lender) execute such
     sales  agreements,  other  agreements  and/or  amendments  of  any existing
     agreements  as  are  necessary  to direct proceeds of runs to be payable to
     Lender;

giving  and  granting  unto said attorney-in-fact full power and authority to do
and perform any and every act and thing whatsoever necessary and requisite to be
done  as  fully  and  to all intents and purposes, as Petrosearch and/or Grantor
might or could do if personally present; and Petrosearch and/or Grantor shall be
bound  thereby  as  fully  and  effectively as if Petrosearch and/or Grantor had
personally  executed,  acknowledged  and  delivered  any  of  the  foregoing
certificates  or  documents.  The  powers  and authorities herein conferred upon
Lender  may  be  exercised  by Lender through any person who, at the time of the
execution  of  the particular instrument, is an officer, agent or representative
of  Lender.  The  power  of  attorney  herein  conferred is granted for valuable
consideration  and  hence is coupled with an interest and is irrevocable so long
as  the  Indebtedness,  or  any  part  thereof, shall remain unpaid. All persons
dealing  with  Lender or any substitute shall be fully protected in treating the
powers  and  authorities conferred by this paragraph as continuing in full force
and  effect  until  advised by Lender that all the secured indebtedness is fully
and finally paid. Lender may, but shall not be obligated to, take such action as
it  deems  appropriate  in  an  effort  to  collect the proceeds of runs and any
reasonable  expenses  (including  reasonable  attorneys'  fees  and expenses) so
incurred  by  Lender shall be a demand obligation of Petrosearch and Grantor and
shall  be  part  of  the secured Indebtedness, and shall bear interest each day,
from  the  date  of  such expenditure or payment until paid, at the Note Default
Rate  described  in  Section  2.3  hereof.

     3.3     Upon  Default  by  Petrosearch and/or Grantor in performance of its
obligations  under  the Note or any other Loan Document, the monthly proceeds of
runs  actually received by Lender may be held by Lender and applied first to all
fees and expenses incurred by Lender in the enforcement of the terms of any Loan
Document,  then to the payment of all accrued interest on the Note and any other
of  the Indebtedness and then to the payment of installments of principal of the
Note  in  the stated order of maturity and then to any other of the Indebtedness
owing  by  Petrosearch  and/or  Grantor  to  Lender in such manner as Lender may
elect.  In  its  sole  discretion,  Lender  may elect to return any part of said
funds to Petrosearch and/or Grantor or to deposit the same to Petrosearch and/or
Grantor's  account  without  applying  it  to  the  Indebtedness.

     3.4     The  receipt by the Lender of any monies, including but not limited
to  money  received as proceeds of runs, shall not in any manner change or alter
in  any  respect  the  obligations

<PAGE>
of  Petrosearch upon the Note or other evidence of the Indebtedness, and nothing
herein  contained shall be construed as limiting the Lender to the collection of
any  of  the  Indebtedness  out of the proceeds of runs.  The Indebtedness shall
continue  as the absolute and unconditional obligation of Petrosearch to pay, as
provided  in  the  Note  or  other  instruments evidencing the Indebtedness, the
amounts  therein  specified  at  their  respective  maturity  dates,  whether by
acceleration  or  otherwise.

     3.5     Lender  is  hereby  absolved  and  released  from all liability for
failure  or  delay  to  enforce  collection of the proceeds of runs and from all
other  responsibility  in  connection  therewith  except  the  responsibility to
account  to Petrosearch or Grantor for funds actually received.  Petrosearch and
Grantor  agree  to  indemnify  and  hold  Lender  harmless  against  any and all
liabilities,  actions,  claims, judgments, costs, charges and attorneys' fees by
reason  of  the  assertion  that Lender has received, either before or after the
payment in full of the Indebtedness, funds from the sale of Hydrocarbons claimed
by  third  persons, except for third parties who have valid claims. Lender shall
have the right to defend against any such claims or actions, employing attorneys
of  its  own  selection.  The foregoing indemnities shall not terminate upon the
release, foreclosure or other termination of this Deed of Trust but will survive
the  foreclosure of this Deed of Trust or conveyance in lieu of foreclosure, and
the  repayment of the Indebtedness and the discharge and release of this Deed of
Trust  and  the  other  documents  evidencing  and/or securing the Indebtedness.
WITHOUT  LIMITATION,  IT  IS  THE  INTENTION  OF  PETROSEARCH  AND  GRANTOR  AND
PETROSEARCH  AND GRANTOR AGREE THAT THE FOREGOING RELEASES AND INDEMNITIES SHALL
APPLY  TO  EACH  INDEMNIFIED  PARTY  WITH  RESPECT  TO  ALL  CLAIMS,  DEMANDS,
LIABILITIES,  LOSSES,  DAMAGES  (INCLUDING  WITHOUT  LIMITATION  CONSEQUENTIAL
DAMAGES,  CAUSES  OF ACTION, JUDGMENTS, PENALTIES, COSTS AND EXPENSES (INCLUDING
WITHOUT LIMITATION REASONABLE ATTORNEYS' FEES AND EXPENSES) WHICH IN WHOLE OR IN
PART  ARE  CAUSED  BY  OR ARISE OUT OF THE NEGLIGENCE OF SUCH (AND/OR ANY OTHER)
INDEMNIFIED  PARTY.  However, such indemnities shall not apply to any particular
indemnified  party  (but  shall  apply  to the other indemnified parties) to the
extent  the  subject  of  the indemnification is caused by or arising out of the
gross  negligence or willful misconduct of such particular indemnified party. If
not  furnished  with indemnity satisfactory to the Lender, Lender shall have the
right  to  compromise and adjust any such claims, actions and judgments, and, in
addition to the rights to be indemnified as herein provided, all amounts paid by
Lender  in  compromise,  satisfaction  or discharge of any such claim, action or
judgment  and  all  court  costs,  attorneys'  fees  and other expenses of every
character  incurred  by Lender shall be a demand obligation owing by Petrosearch
and  Grantor,  shall  be  secured by the lien and security interest evidenced by
this  instrument  and shall bear interest on each such amount from the date that
the  same  is expended, advanced or incurred by Lender until the date of written
demand or request by Lender for the reimbursement of same, at a rate of interest
equal  to  the  Note  Default  Rate.

     3.6     Each  of  the  provisions  of  this  Article  III shall be deemed a
covenant running with the Land and shall be binding upon Grantor, its successors
and  assigns,  and  inure  to the benefit of Lender, its successors and assigns.

                                   ARTICLE IV
                                  -----------

<PAGE>
                    RELEASE UPON REPAYMENT, PARTIAL RELEASES
                    ----------------------------------------
                   AND MASTER AND SUPPLEMENTAL DEEDS OF TRUST
                   ------------------------------------------

     4.1     If all Indebtedness be paid as the same becomes due and payable and
if  the  covenants,  warranties,  undertakings  and  agreements  made  in  this
instrument  are  kept  and  performed,  then and in that case only, this Deed of
Trust  shall  have  no  force  and effect, this conveyance shall become null and
void,  the  Covered  Properties hereby conveyed shall become wholly clear of the
liens, conveyances, assignments and security interests evidenced hereby, and all
such liens, conveyances, assignments and security interests shall be released in
due  form  at  Grantor's  cost.

     4.2     Petrosearch  and  Grantor  shall be entitled to obtain from Lender,
upon  written request, a partial release of this Deed of Trust as to any Covered
Property  so  long  as  the written request is signed by the chief financial and
accounting  officer  of  Petrosearch  and  contains a certification by the chief
financial  and  accounting  officer  of Petrosearch that the Collateral Coverage
Requirements  set  forth  in Section 1.6 of the Loan Agreement will be satisfied
after  the  partial  release is delivered.  All Proved Producing Reserves relied
upon  by  Petrosearch  in  its request and certification shall be supported by a
reserve  study  or  studies  dated  within  thirty  (30)  days  of  the request.

     4.3     This  Deed  of  Trust  is intended as a master Deed of Trust which,
when filed for record, shall cover the Lands, Leases and any and all other lands
and  leases  hereafter  acquired  by  Grantor in the County where the Leases are
situated.  Petrosearch  and  Grantor  agree  to  promptly execute and deliver in
recordable  form, such Supplemental Deed(s) of Trust as are reasonably requested
by  Lender  to  evidence  a  first  and  prior lien and security interest in the
Land(s)  acquired  by  Grantor  after  the  Effective Date and the execution and
recording  of such a Supplemental Deed of Trust shall in all respects grant unto
Lender such rights and interests in the Land(s) covered thereby as if such Lands
were  included  in  this  Deed of Trust as a Covered Property. Each Supplemental
Deed  of  Trust  shall  be  treated as a Loan Document and shall be deemed to be
cross-defaulted  and  cross-collateralized  to  every  other  Deed  of  Trust,
Supplemental  Deed of Trust and Loan Document such that a default under one Loan
Document  shall  constitute  a  default  under  every  other  Loan  Document.

<PAGE>
                                    ARTICLE V
                                    ---------

                          REMEDIES IN EVENT OF DEFAULT
                          ----------------------------

     5.1     The  terms  "Default"  and  "Event  of  Default"  as  used  in this
instrument  shall  each mean the failure to make any payment under the Note when
due or the failure of Petrosearch and/or Grantor to timely and properly observe,
keep  or  perform  any covenant, agreement or condition required to be observed,
kept or performed under any Loan Document (except a failure to pay the Note when
due) if such failure continues for twenty (20) days after receipt by Petrosearch
and/or  Grantor  of  written  notice or demand for performance of such covenant,
agreement  or  condition, or any representation contained herein or in any other
Loan  Document  or  otherwise  made  by  Petrosearch and/or Grantor or any other
person or entity to the Lender in connection with the loan evidenced by the Loan
Documents  is  false  or  misleading  in  any  material  respect.

     5.2     It  is  intended  that  the  Loan  Documents be cross-defaulted and
cross-collateralized  such  that  a  Default  under  one  Loan  Document  shall
constitute  a  Default under every other Loan Document entitling Lender to avail
itself  of  all  remedies,  legal  or  equitable,  arising under any of the Loan
Documents  or  under  applicable  law.

     5.3     Upon  the  occurrence  and  during  the continuance of any Event of
Default,  Lender  may,  at  its  sole  option and sole remedy, without notice to
Petrosearch and/or Grantor, declare the principal of and interest accrued on the
Note  to  be  forthwith due and payable, whereupon the same shall become due and
payable  without  any presentment, demand, protest, notice of protest, notice of
intent to accelerate, notice of acceleration or notice of any kind, all of which
are  all  hereby  waived.

     5.4     Upon  the  occurrence  of  an  Event of Default, Petrosearch and/or
Grantor  hereby authorize(s) and empower(s) the Trustee, and each and all of his
successors  in  this  trust,  at  the  request  of  the Lender, at any time when
Petrosearch  and/or  Grantor  shall  be  in  Default  in  the performance of any
covenant or agreement in the Note or hereunder to sell the Covered Properties at
public  venue  to the highest bidder, for cash. Except as may be required by the
jurisdiction  in  which any of the Covered Properties are located, this power of
sale may be exercised by Lender or Trustee without judicial action or authority.
The  sale  shall  be  made  at  the  location,  time  and in accordance with the
requirements  of  the  laws of the jurisdiction where the Covered Properties are
located.  If  the  Covered  Properties are located in a state where non-judicial
foreclosure  is  allowed  by power of sale granted in the mortgage document, the
sale  shall  occur  between  the  hours of 10:00 a.m. and 1:00 p.m. of the first
Tuesday  of any month, after having given notice of the sale at least twenty-one
(21) days prior to the date of the sale, in the manner hereinafter described, in
the  county  in  which the Covered Properties, or any part thereof are situated;
provided  that  if  the Covered Properties are situated in more than one county,
such  sale of the Covered Properties, or part thereof, may be made in any county
in  the  State of Texas wherein any part of the Covered Properties are situated.
The  sale shall be made at the area of the County Courthouse designated for such
sales  by  the  Commissioner's  Court of such county in an instrument heretofore
recorded  in  the  real  property records of that county; provided that, if said
                                                          -------------
Commissioner's  Court  has  not  heretofore  recorded  a  written  instrument
designating  the  area  in  which  such  sales  shall occur in the real property
records of such county, then the sale shall take place at the area of the County
Courthouse  designated  in  the

<PAGE>
notice  of sale.  The sale shall begin at the time stated in the notice of sale,
or  not  later  than  three (3) hours after that time.  The notice of sale shall
include  a statement of the earliest time at which the sale will occur and shall
be  given  by  posting  (or  by having some person or persons acting for Trustee
post), for at least twenty-one (21) days preceding the date of the sale, written
or  printed notice of the proposed sale at the Courthouse door of said county in
which  the  sale is to be made, and if such property is in more than one county,
one such notice of sale shall be posted at the Courthouse door of each county in
which  part  of  such  property is situated and such property may be sold at the
courthouse  door  of  any  one  of such counties, and the notice so posted shall
designate  in  which  county  such  property  shall be sold; in addition to such
posting  of  notice,  Lender  shall, at least twenty-one (21) days preceding the
date  of  sale,  file  a copy of such written notice of the proposed sale in the
office of the county clerk of the county in which the sale is to be made, and if
such  property is in more than one county, a copy of such written notice of sale
shall be so filed in the office of the county clerk of each county in which part
of such property is situated.  In addition to such posting and filing of notice,
the  Lender  shall,  at  least  twenty-one (21) days preceding the date of sale,
serve  written  or  printed  notice  of  the  proposed sale by certified mail on
Grantor.  Service  of such notice shall be completed upon deposit of the notice,
enclosed in a postpaid wrapper, properly addressed to Grantor at its most recent
address  or addresses as shown by the records of the Lender, in a post office or
official  depository  under  the  care  and  custody of the United States Postal
Service.  The  affidavit  of  any  person  having  knowledge of the facts to the
effect that such service was completed shall be prima facie evidence of the fact
of  service.  Grantor agrees that no notice of any sale other than as set out in
this  paragraph  need  be  given  by  Trustee,  the  Lender or any other person.
Grantor  hereby  designates  as  its address for the purposes of any notice, the
address  set out hereinabove, and agrees that such address shall be changed only
by  depositing  notice of such change, enclosed in a postpaid wrapper, in a post
office  or  official  depository under the care and custody of the United States
Postal  Service,  certified  mail  postage  prepaid,  return  receipt requested,
addressed  to the Lender at the address set out herein (or to such other address
as the Lender may have designated by notice given as above provided to Grantor),
any  such notice of change of address of Grantor shall be effective upon receipt
by  Lender.  Any  change  of  address  of  Lender  shall  be effective three (3)
business  days  after  deposit thereof in the above described manner in the care
and  custody  of  the  United  States Postal Service.  Upon the occurrence of an
Event  of  Default, Grantor hereby authorizes and empowers the Trustee, and each
and  all  of Trustee's successors in this trust, to sell the Covered Properties,
or  any  interest  or  estate  in  the Covered Properties together or in lots or
parcels, as such Trustee shall deem expedient, and to execute and deliver to the
purchaser  or  purchasers  of the Covered Properties good and sufficient deed or
deeds of conveyance thereof and bills of sale with covenants of general warranty
binding on Grantor and its successors and assigns.  The proceeds of said sale or
sales  received  by  the  Trustee  shall  be  applied  as  follows:

     FIRST:  To  the payment of all necessary costs and expenses incident to the
     execution  of  this  trust,  including  but not limited to a reasonable fee
     to Trustee;

     SECOND: To the payment of the Indebtedness; and

     THIRD: The remainder, if any, shall be paid to Grantor.

The  recitals  in any deed, assignment or other conveyance given by Trustee of a
default,  publication

<PAGE>
of  notice  of sale, demand that such sale should be made, postponement of sale,
terms  of sale, sale, name of purchaser, payment of purchase money and any other
facts  affecting  the  regularity  or  validity of such sale shall be conclusive
proof  of  the  truthfulness thereof, and such deed or deeds shall be conclusive
against  all  persons  as  to  all  matters  or  facts  therein  recited.

     5.5     In  addition  to  all  other  remedies herein provided for, after a
default  has  occurred  Lender  shall,  as a matter of right, be entitled to the
appointment of a receiver or receivers of its choice except as may be prohibited
by law, for all or any part of the Covered Properties, whether such receivership
be  incident  to  a  proposed  sale  of the Covered Properties or otherwise, and
Grantor does hereby consent to the appointment of such receiver or receivers and
agrees  not  to  oppose  any  application  therefor  by  Lender.

     5.6     Lender  shall  have the right to become the purchaser or purchasers
at  any sale held by Trustee or by any receiver or public officer.  Lender, if a
purchaser  at  any  such sale, shall have the right to credit upon the amount of
the  bid  made  therefor  the pro rata part of the Indebtedness owing to Lender,
accounting  to  other holders any portion of the Indebtedness not bidding or not
bidding  successfully  at such sale or sales in cash for the portion of such bid
or  bids  apportionable  to  such  non-bidding  holder  or  holders.

     5.7     Lender  may  resort  to any security given by this instrument or to
any  other security now existing or hereafter given to secure the payment of the
Indebtedness, in whole or in part, and in such portions and in such order as may
seem  best  to  Lender in its sole and uncontrolled discretion.  Any such action
shall not in anywise be considered as a waiver of any of the rights, benefits or
liens  evidenced  by  this  instrument.

     5.8     In  those  states where a non-judicial power of sale is unavailable
and  foreclosure  must  be  effected  pursuant  to  a  local  judicial action in
accordance  with  applicable  state law, Lender shall comply with the applicable
state law in the pursuit of its remedy of foreclosure, and if a foreclosure sale
pursuant  to  judicial  authority is then conducted, shall apply the proceeds of
sale  in  the  order  of  priority  set forth in Section 5.4 hereinabove, unless
otherwise  required  under  applicable  state  law.

                                   ARTICLE VI
                                   ----------

                 APPOINTMENT OF SUBSTITUTE OR SUCCESSOR TRUSTEE
                 ----------------------------------------------

     6.1     Lender  may  at  any  time,  by an instrument in writing, appoint a
successor  to  Trustee,  which  instrument shall contain the name of Grantor, of
Trustee  and  of the Lender, the places of recordation of this instrument in the
real property records of any county where it has been recorded, and the name and
address  of  the  new  Trustee.  Such instrument when executed, acknowledged and
recorded  shall be conclusive proof of the proper substitution of such successor
Trustee.   Such  successor  Trustee,  without  conveyance  from  the predecessor
Trustee,  shall succeed to all of the rights, titles, estates, powers and duties
of the predecessor Trustee.  In like manner successive successor Trustees may be
appointed  in  place  of  any  prior  Trustee  or  successor.

<PAGE>
                                   ARTICLE VII
                                   -----------

                               SECURITY AGREEMENT
                               ------------------

     7.1     To  further secure the Indebtedness, Petrosearch and Grantor hereby
grant  to  Lender  a  security  interest  in  all of Petrosearch's and Grantor's
rights,  titles  and  interests in and to the Covered Properties insofar as such
Covered  Properties  consist of the goods, equipment, accounts, contract rights,
records,  files,  data  and  materials  of  every kind pertaining to the Covered
Properties,  general  intangibles, inventory, Hydrocarbons, fixtures and any and
all  other  personal property of any kind or character defined in and subject to
the provisions of the applicable Uniform Commercial Code, including the proceeds
and  products  from  any and all of such personal property (all of the foregoing
being  in  this  Article  VII  collectively  called the "Collateral").  Upon the
occurrence  of  any  Event of Default, Lender is and shall be entitled to all of
the  rights,  powers  and  remedies  afforded  a secured party by the applicable
Uniform  Commercial Code with reference to the personal property and fixtures in
which  Lender  has  been  granted  a security interest herein, or the Trustee or
Lender  may  proceed as to both the real and personal property covered hereby in
accordance with the rights and remedies granted under this instrument in respect
of  the real property covered hereby.  Such rights, powers and remedies shall be
cumulative  and  in  addition to those granted Trustee or Lender under any other
provision  of  this  instrument  or  under  any  other  instrument  executed  in
connection  with  or  as  security  for  the  Note  or  any of the Indebtedness.
Petrosearch and Grantor, as Debtor (and in this Article VII and otherwise herein
called "Debtor") covenants and agrees with Lender, as Secured Party (and in this
Article  VII  and  otherwise  herein  called  "Secured  Party")  that:

          (a)     To  the  extent  permitted by law, Debtor expressly waives any
     notice  of  sale  or  other  disposition  of  the  Collateral and any other
     right  or remedies of a debtor or formalities prescribed by law relative to
     sale  or  disposition  of  the Collateral or exercise of any other right or
     remedy of Secured Party existing after default hereunder; and to the extent
     any  such  notice  is  required and cannot be waived, Debtor agrees that if
     such  notice  is mailed, postage prepaid, to Debtor at Debtor's address set
     out  herein  at least five days before the time of the sale or disposition,
     such  notice  shall  be  deemed  reasonable  and  shall  fully  satisfy any
     requirement for giving of said notice.

          (b)     In  addition  to  the other remedies herein provided for, upon
     the  occurrence  of  an  Event  of  Default,  Secured  Party  is  expressly
     granted  the  right  at its option, to transfer at any time to itself or to
     its nominee the Collateral, or any part thereof, and to receive the monies,
     income,  proceeds, or benefits attributable or accruing thereto and to hold
     the  same  as security for the Indebtedness or to apply it on the principal
     and  interest or other amounts owing on any of the Indebtedness, whether or
     not  then  due,  in  such  order  or manner as Secured Party may elect. All
     rights  to  marshalling  of assets of Debtor, including any such right with
     respect to the Collateral, are hereby waived.

          (c)     All  recitals  in  any  instrument  of assignment or any other
     instrument

<PAGE>
     executed  by  Secured  Party  incident  to  sale,  transfer,  assignment or
     other  disposition  or  utilization  of  the Collateral or any part thereof
     hereunder  shall  be  prima facie evidence of the matter stated therein, no
     other proof shall be required to establish full legal propriety of the sale
     or  other  action  or of any fact, condition or thing incident thereto, and
     all  prerequisites  of such sale or other action and of any fact, condition
     or  thing  incident  thereto  shall  be  presumed conclusively to have been
     performed or to have occurred.

          (d)     All  expenses  of  preparing  for  sale,  or  other  use  or
     disposition,  selling  or  otherwise  using  or disposing of the Collateral
     and  the  like which are incurred or paid by Secured Party as authorized or
     permitted hereunder, including also all attorneys' fees, legal expenses and
     costs,  shall  be  added to the Indebtedness and the Debtor shall be liable
     therefor.

          (e)     Should  Secured  Party elect to exercise its rights under said
     Uniform  Commercial  Code  as  to  part  of  the  Collateral, this election
     shall  not  preclude Secured Party or the Trustee from exercising any other
     rights  and  remedies granted by this instrument as to the remainder of the
     Collateral.

          (f)     Any  copy  of  this  instrument  may also serve as a financing
     statement  under  said  Uniform  Commercial  Code between the Debtor, whose
     present  address is Grantor's address listed on the first page of this Deed
     of  Trust,  and  Secured  Party,  whose  present  address is P.O. BOX 9109,
     NEWPORT BEACH, CALIFORNIA 92658.

          (g)     So  long  as  any  amount  remains  unpaid  on  any  of  the
     Indebtedness,  Debtor  will  not  execute  and  there  will not be filed in
     any  public  office  any  financing  statement  or statements affecting the
     Collateral  other  than  financing  statements  in  favor  of Secured Party
     hereunder  and  Permitted  Liens, unless the prior written specific consent
     and approval of Secured Party shall have first been obtained.

          (h)     Secured Party is authorized to file, in any jurisdiction where
     Secured  Party  deems  it  necessary,  a financing statement or statements,
     and  at  the  request  of  Secured Party, Debtor will join Secured Party in
     executing  one  or  more  financing  statements  pursuant  to  said Uniform
     Commercial  Code  in  form  satisfactory to Secured Party, and will pay the
     cost  of  filing or recording this instrument, as a financing statement, in
     all  public  offices  at  any time and from time to time whenever filing or
     recording  of  any  financing  statement or of this instrument is deemed by
     Secured Party to be necessary or desirable.

          (i)     The  office  where  Debtor  keeps  Debtor's accounting records
     concerning  the  Collateral covered by this Security Agreement is Grantor's
     address  listed  on  the  first  page  of  this  Deed  of  Trust.

     7.2     Portions  of  the  Collateral  consist  of  (i)  oil, gas and other
minerals  produced  or to be produced from the Lands described in the Leases, or
(ii)  goods  which  are  or  will  become  fixtures  attached to the real estate
constituting  a portion of the Covered Properties, and Debtor hereby agrees that
this  instrument  shall be filed in the real property records of the counties in
which  the

<PAGE>
Covered  Properties are located as a financing statement to perfect the security
interest of Secured Party in said portions of the Collateral.  The said oil, gas
and  other  minerals  will  be financed at the wellhead of the oil and gas wells
located  on  the Lands described in the Leases.  The name of the record owner of
the Covered Properties is the party named herein as Grantor and Debtor.  Nothing
herein  contained  shall impair or limit the effectiveness of this document as a
security  agreement  or  financing  statement  for  other  purposes.

                                  ARTICLE VIII
                                  ------------

                            MISCELLANEOUS PROVISIONS
                            ------------------------

     8.1     All  options and rights of election herein provided for the benefit
of  Lender  are continuing, and the failure to exercise any such option or right
of  election  upon a particular Default or breach or upon any subsequent Default
or breach shall not be construed as waiving the right to exercise such option or
election  at  any  later  date.  By the acceptance of payment of any sum secured
hereby  after  its due date, Lender shall not be deemed to have waived the right
either  to  require  prompt  payment when due of all other sums so secured or to
regard  as  an  Event of Default the failure to pay any other sums due which are
secured  hereby.  No  exercise  of  the  rights and powers herein granted and no
delay  or  omission  in  the exercise of such rights and powers shall be held to
exhaust  the  same or be construed as a waiver thereof, and every such right and
power  may  be  exercised  at  any  time  and  from  time  to  time.

     8.2     If  two  or  more  parties  shall  at  any  time  be Lenders of the
Indebtedness,  all  of  them may jointly exercise any right, option, election or
other  power,  authority or benefit granted herein to Lender, or any of them may
do  so  with  the  express  consent  of  the  other  or  others  of  them.

     8.3     All  Indebtedness  shall  be payable at Lender's offices or at such
place  as  Lender  may  from  time  to  time  designate  in  writing.

     8.4     The  terms,  provisions,  covenants  and conditions hereof shall be
binding  upon  Petrosearch  and  Grantor  and their respective successors, legal
representatives  and  assigns,  and  shall  inure  to  the  benefit  of Trustee,
Trustee's  substitutes  or successors and assigns, and of Lender, its successors
and assigns, and all other holders of the Indebtedness, or any part thereof, and
their  respective  successors  and  assigns.

     8.5     If  any  provision  hereof  is  invalid  or  unenforceable  in  any
jurisdiction,  the other provisions hereof shall remain in full force and effect
in  such  jurisdiction,  and  the remaining provisions hereof shall be liberally
construed  in  favor  of  the  Trustee  and  Lender  in  order to effectuate the
provisions  hereof,  and  the  invalidity  or  unenforceability of any provision
hereof  in  any  jurisdiction shall not affect the validity or enforceability of
any  such  provision  in  any  other  jurisdiction.

     8.6     It  is  the  intention  of  the  parties  hereto to comply with the
applicable  usury  laws;  accordingly,  it  is  agreed  that notwithstanding any
provisions  to  the  contrary  in  the  Note,  any  instrument  evidencing  the
Indebtedness,  this  instrument  or  in  any  of  the  documents  or instruments

<PAGE>
securing  payment of the Indebtedness or otherwise relating thereto, in no event
shall the Note or such documents require the payment or permit the collection of
interest  in  excess  of the maximum amount permitted by such laws.  If any such
excess  of  interest is contracted for, charged or received, under the Note, any
instrument  evidencing  the  Indebtedness, this instrument or under the terms of
any  of  the  other  documents securing payment of the Indebtedness or otherwise
relating  thereto,  or  in  the event the maturity of any of the Indebtedness is
accelerated  in  whole  or  in  part,  or  in  the event that all or part of the
principal or interest of the Indebtedness shall be prepaid, so that under any of
such  circumstances, the amount of interest contracted for, charged or received,
under  the  Note  or  any  instruments  evidencing  the Indebtedness, under this
instrument  or  under  any  of  the  other  instruments  securing payment of the
Indebtedness  or otherwise relating thereto, on the amount of principal actually
outstanding  from  time  to time under the Note and other instruments evidencing
the  Indebtedness,  shall exceed the maximum amount of interest permitted by the
applicable  usury laws, now or hereafter enacted, then in any such event (a) the
provisions  of  this paragraph shall govern and control, (b) neither Petrosearch
or  any  other  person  or entity now or hereafter liable for the payment of the
Note or any instrument evidencing the Indebtedness shall be obligated to pay the
amount of such interest to the extent that it is in excess of the maximum amount
of  interest  permitted  by the applicable usury laws, now or hereafter enacted,
(c)  any  such  excess that may have been collected shall be either applied as a
credit  against  the  then  unpaid  principal  amount  hereof  or  refunded  to
Petrosearch, at Lender's option, and (d) the effective rate of interest shall be
automatically  reduced  to  the  maximum  lawful contract rate allowed under the
applicable  usury  laws,  now  or  hereafter enacted.  It is further agreed that
without  limitation  of  the foregoing, all calculations of the rate of interest
contracted  for,  charged  or  received  under the Note, or any other instrument
evidencing the Indebtedness, under this instrument or under such other documents
that  are  made  for  the  purpose  of determining whether such rate exceeds the
maximum  lawful  contract  rate,  shall  be made, to the extent permitted by the
applicable  usury  laws,  now  or  hereafter  enacted, by amortizing, prorating,
allocating  and  spreading  in  equal parts during the period of the full stated
term  of  the  loans  evidenced  by  the  Note or the instruments evidencing the
Indebtedness,  all interest at any time contracted for, charged or received from
Petrosearch  or  otherwise  by  Lender  in  connection  with  such  loans.

     8.7     THIS  INSTRUMENT  SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH  THE  LAWS  OF  THE  STATE  OF  TEXAS  EXCEPT  AS  MAY BE APPLICABLE TO THE
ENFORCEMENT  OF  LENDER'S REMEDIES AGAINST THE COVERED PROPERTIES WHICH SHALL BE
GOVERNED  BY  THE LAW OF THE STATE IN WHICH SUCH COVERED PROPERTIES ARE LOCATED.

     8.8     NOTICE  OF  NO  ORAL  AGREEMENTS.  THIS DOCUMENT AND ALL OTHER LOAN
             --------------------------------
DOCUMENTS  RELATING  TO  THIS  LOAN TOGETHER CONSTITUTE A WRITTEN LOAN AGREEMENT
WHICH  REPRESENTS  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  RELATING  TO  THIS  LOAN.

     IN  WITNESS  WHEREOF, this instrument is executed in multiple counterparts,
each  of

<PAGE>
which  shall  be  deemed  an original for all purposes, effective as of the date
hereinabove  first  set  out.

                         _________  PETROSEARCH,  L.L.C.,  A  TEXAS
                                    LIMITED  LIABILITY  COMPANY

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

                              PETROSEARCH  CORPORATION,  PRO
                              FORMA

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

STATE  OF  TEXAS          }
                          }
COUNTY  OF  HARRIS        }

     This  instrument  was  acknowledged  before  me  on this the _______ day of
October,  2004, by Bradley J. Simmons, Manager of  _________________PETROSEARCH,
L.L.C.,  a  Texas  limited  liability  company,  on  behalf  of  said  company.

                                   ________________________________
                                   Notary  Public,  State  of  Texas

STATE  OF  TEXAS          }
                          }
COUNTY  OF  HARRIS        }

     This  instrument  was  acknowledged  before  me  on this the _______ day of
October,  2004,  by  Bradley J. Simmons, President of PETROSEARCH CORPORATION, a
Texas  corporation,  on  behalf  of  said  corporation.

                                   ________________________________
                                   Notary  Public,  State  of  Texas

AFTER  RECORDING  RETURN  TO:

Barry  L.  Racusin
Racusin  &  Wagner,  L.L.P.
3100  Phoenix  Tower
3200  Southwest  Freeway
Houston,  Texas  77027

<PAGE>

                                   EXHIBIT "A"
                                   -----------
                             [Description of Leases]

<PAGE>

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