Document:

Unassociated Document

    Exhibit
      10.5 

     

    
 

    AQUATIC
      CELLULOSE

     

     

     

     

     

     

    ESTIMATED

     

    RESERVES
      AND FUTURE INCOME

     

    ATTRIBUTABLE
      TO CERTAIN

     

    LEASEHOLD
      INTERESTS

     

    AS
      OF

     

     

    January
      1, 2005

     

     

    

     

    
      
        
          

        

        
        

      

      
        1

        
          

        

      

      
        
        

        
        

      

    

    TABLE
      OF
      CONTENTS

    

    AQUATIC
      CELLULOSE INTERNATIONAL CORP.

    

    

    
      	
              DISCUSSION

            	 
	 	 
	
              ONE
                LINE SUMMARIES

            	 
	
              Summary
                of
                Estimated
                8/8ths Reserves 

            	
              A

            
	
              Summary
                of
                Net
                Reserves and Income Data 

            	
              B

            
	
              Summary
                of
                Net
                Reserves and Income Data -
                Ranked
                by Discounted

            	
               

            
	
              Future
                Net Income discounted at 10%

            	
              C

            
	 	 
	
              GRAND
                SUMMARIES

            	 
	
              Total
                Proved Reserves 

            	
              1

            
	
              Total
                Proved Producing Reserves 

            	
              2

            
	
              Total
                Proved Undeveloped Reserves 

            	
              3

            
	
              Total
                Possible Undeveloped Reserves 

            	
              4

            
	 	 
	
              LEASEHOLD
                PROJECTIONS

            	 
	 	 
	
              Prado
                Field, Jim Hogg Co, TX 

            	
              5-7

            
	 	 
	
              Sargent
                South Field, Matagorda Co, TX 

            	
              8-22

            

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    

    

    
      
        
          

        

        
        

      

      
        3

        
          

        

      

      
        
        

        
        

      

    

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

     

    R.
      A. Lenser and Associates, Inc.

    Consulting
      Petroleum Engineers and Geologists

    11757
      Katy Freeway

    Suite
      370

    Houston,
      Texas 77079

    March
      24,
      2005

    Aquatic
      Cellulose International Corp.

    Suite
      5,
      2504-43rd St.Vernon,

     British
      Columbia Canada VIP 6L1

     

    Attention
      Mr. Sheridan Westgarde Dear
      Mr.
      Westgarde:

     

     

    As
      requested, we have made an estimate of the reserves and future production and
      income
      attributable to certain leasehold interests of Aquatic Cellulose International
      Corp. as
      of
January
      1, 2005. This report is based on constant prices and costs as set forth in
      this
      letter.  The
      subject properties are located in the Sargent South Field, Matagorda County,
      Texas. The results of this study are summarized below:

     

    
      	
               

              Aquatic
                Cellulose International Corp.

              Estimated
                Net Reserves and Income Data

              Attributable
                to Certain Leasehold Interests

            	 
	 	 	
              As
                of January 1. 2005

            	 	 	 
	 	 	
               

              proved

              Producing

            	 	
               

              Proved

              Undeveloped

            	 	
               

              Total

              Proved

            	 
	
              Remaining
                Reserves

            	 	 	 	 	 	 	 	 	 	 
	
              Oil
                / Condensate -
                MBbIs

            	 	 	
              1

            	 	 	
              0

            	 	 	
              1

            	 
	
              Gas
                -
                MMCF

               

            	 	 	
              39

              
              

            	 	 	
              205

              
              

            	 	 	
              244

              
              

            	 
	
              Income
                Data

            	 	 	 	 	 	 	 	 	 	 
	
              Future
                Gross Revenue

            	 	
              $

            	
              257,131

            	 	
              $

            	
              1,046,928

            	 	
              $

            	
              1,304,059

            	 
	
              Deductions

            	 	 	
              95,986

            	 	 	
              409
                150

            	 	 	
              505,136

            	 
	
              Future
                Net Income

               

            	 	
              $

              
              

            	
              161,145

              
              

            	 	
              $

              
              

            	
              637,778

              
              

            	 	
              $

              
              

            	
              1,809,195

              
              

            	 
	
               

              Discounted
                FNI @ 10%

            	 	
              
              

              $

            	
              
              

              150,345

            	 	
              
              

              $

            	
              
              

              443,408

            	 	
              
              

              $

            	
              
              

              593,753

            	 

    

    

     

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

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    Aquatic
      Cellulose International Corp.

    March
      24,
      2005

    Page
      2

     

    
      	
              Possible

              Undeveloped

            	 	 	 
	
               

              Remaining
                Reserves

            	 	 	 	 
	
              Oil
                / Condensate -
                MBbls

            	 	 	
              0

            	 
	
              Gas
                -
                MMCF

            	 	 	
              2064

            	 
	
              Income
                Data

            	 	 	 	 
	
              Future
                Gross Revenue

            	 	
              $

            	
              10,528,440

            	 
	
              Deductions

            	 	 	
              2
                498 403

            	 
	
              Future
                Net Income

            	 	
              $

            	
              8,030,038

            	 
	
              Discounted
                FNI @10%

            	 	
              $

            	
              3,381,313

            	 

    

    

     

    The
      discounted future net income shown above is based on a discount rate of 10
      percent per
      annum
      compounded monthly. Future net income was discounted at five other discount
      rates,
      which are compounded monthly. These data are shown on each estimated projection
      of future
      production and income presented in a later section of this report and are
      summarized as follows:

     

    
      	
              Discounted
                Rate

              Percent

            	 	
              Total

              Proved

            	 
	
               

              10

            	 	
              
              

              $

            	
              
              

              593,753

            	 
	
              15

            	 	
              $

            	
              520,193

            	 
	
              20

            	 	
              $

            	
              460,092

            	 
	
              25

            	 	
              $

            	
              410,481

            	 
	
              30

            	 	
              $

            	
              369,143

            	 
	
              35

            	 	
              $

            	
              334,403

            	 

    

    

     

    These
      data are presented for your information and should not be construed as our
      estimate
      of fair market value.

    

    Liquid
      Hydrocarbon Volumes are expressed in thousands of barrels (MBbls). A barrel
      is
equivalent
      to 42 United States gallons. Gas Volumes are expressed in millions of standard
      cubic
      feet (MMCF) at the contract temperature and pressure base of the various
      states.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    Aquatic
      Cellulose International Corp.

    March
      24,
      2005

    Page
      3

    

    Reserve
      Definitions

    

    The
      proved reserves included herein conform to the definitions as set forth in
      the
Securities
      and Exchange Commission's Regulation S-X Part 210.4-10 (a) as clarified by
      various Commission
      Staff Accounting Bulletins and to the definitions endorsed by the Society of
      Petroleum
      Engineers (SEE), the Society of Petroleum Evaluation Engineers (SPEE) and the
      World
      Petroleum Congresses (WPC). Definitions of these reserves are included
      immediately following
      this letter.

    

    

    Estimate
      of Reserves

    

    Estimates
      of reserves were prepared by the use of geological and engineering methods
      generally accepted by the petroleum industry. The method or combination of
      methods utilized in
      the
      analysis of each reservoir was tempered by experience in the area, stage of
      development, quality
      and completeness of basic data, and production history.

    

    Where
      applicable, the volumetric method was employed for determining the original
      quantities
      of hydrocarbons in place. Structural and isopachous maps were furnished by
      New
      Century Energy Corp. and, after evaluation by us, were accepted as correct.
      These data were used
      in
      determining reservoir volumes. In some cases drainage areas were assigned based
      on analogy.
      Electrical logs, core analysis, and other available data were used to determine
      representative
      values for porosity and interstitial water saturation. Reserves based upon
      volumetric
      calculations or other methods such as analogy with offset wells are usually
      subject to
      greater revision than those based upon production and/or pressure performance
      data. Therefore,
      it may be necessary to revise these estimates up or down in the future as more
      reliable engineering data becomes available.

    

    Reserves
      of depletion-type reservoirs or those whose performance disclosed reliable
      decline
      in production-rate trends or other diagnostic characteristics were estimated
      by
      the application
      of appropriate decline curves or other performance relationships. In the
      analysis of production
      decline curves, reserves were established only to a calculated economic
      limit.

    

    

    Estimate
      of Future Producing Rates

    

    Initial
      production rates were based on the current rates for those reservoirs now on
      production.
      If no production decline was established, a decline profile analogous to similar
      wells
      was
      used. If a decline trend was established, this trend was used as the basis
      for
estimating
      future rates.

    

    

    Product
      Prices

    

    At
      the
      request of Aquatic Cellulose International Corp. this report was prepared using
      liquid hydrocarbon and gas prices in effect on December 31,
      2004.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    

    

    Liquid
      Hydrocarbon Prices

    

    For
      the
      current report, New Century Energy Corp. provided oil / condense prices for
      each
      lease. The individual prices were held constant over the life of the reserves
      with no future price
      escalation due to inflation. The overall average price for the proved oil /
      condensate reserves
      is $41.43 per barrel and accounts for 43.3 percent of the future gross income
      from all proved
      reserves.

    

    

    Gas
      Prices

    

    For
      the
      current report, New Century Energy Corp. provided gas prices for each lease.
      The
      individual prices were held constant over the life of the reserves with no
      future price escalation
      due to inflation. The resulting overall average price for the gas reserves
      is $
      5.22 per MCP
      and
      accounts for 56.7 percent of the future gross income from all proved
      reserves.

    

    

    Income
      Data

    

    The
      future gross revenue is determined before deduction of production and ad Valero
      taxes.
      Future net income is determined after deduction of the normal costs of operating
      the wells,
      development costs, production taxes and ad Valero taxes. The operating costs,
      and development
      costs were held constant with no future price escalation due to inflation.
      The
future
      net income is before deduction of state and federal income taxes and has not
      been adjusted
      for outstanding loans which may exist. It does not include any adjustment for
      cash on
      hand
      or undistributed income.

    

    Neither
      the salvage Value of lease equipment nor the cost to abandon the properties
      has
      been
      considered in this study.

    

    Table
      A
      presents a summary of the 8/8ths reserves, interests and prices for the subject
      properties
      by well. Table B presents a summary of net reserves and income data for the
      subject
      properties by well and Table C presents a summary of proved net reserves and
      income data
      ranked by 10% discounted future net income. Tables I through 4 are the Grand
      Summa-ries
      and
      Tables 5 through 19 are individual well cashflows alphabetically by state,
      field, and well.
      Adjacent to each table, which represents our estimated projections for a
      particular property,
      is a production decline curve which graphically illustrates past hydrocarbon
      production
      history and our estimated projection of future production.

    

    

    General

    

    

    The
      reserves included in this report are estimates only and should not be construed
      as being
      exact quantities. They may or may not be actually recovered and, if recovered,
      the

    
      
        
        

      

      
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    Aquatic
      Cellulose International Corp.

    March
      24,
      2005

    Page
      5

    

    revenues
      therefrom and the actual costs related thereto could be more or less than the
      estimated
      amounts. Because of governmental policies and uncertainties of supply and
demand,
      the actual sales volumes and the prices received from the reserves, along with
      the costs incurred in recovering such reserves, may vary from those assumptions
      included in this report.
      Also, estimates of reserves may increase or decrease as a result of future
      operations.

    

    We
      are
      qualified to perform engineering evaluations and do not claim expertise in
      accounting
      or legal matters. As in all aspects of oil and gas evaluation, there are
      uncertainties inherent
      in the interpretation of engineering data and; therefore, our conclusions
      necessarily represent
      only our best-informed professional judgments.

    

    The
      titles to the properties have not been examined by R. A. Lenser and Associates,
      Inc. nor
      has
      the actual degree or type of interest owned been independently confirmed. The
      data used in our estimates were obtained from New Century Energy Corp. and
      were
      accepted as accurate.
      For the purposes of this report, afield inspection of the properties was not
      performed nor was the mechanical operation or condition of the wells and their
      related facilities examined. We
      have
      not investigated possible environmental liability related to the properties
      and;
therefore,
      our estimates do not include any potential liability to restore and clean up
      any
damages
      caused by past operations.

    

    We
      are
      independent petroleum engineers and geologists; we do not own an interest in
      these
      properties and are not employed on a contingent basis. Basic geologic and field
      performance
      data together with our engineering work sheets are maintained on file in our
      office and
      are
      available for review.

     

     

    
 

    
      	 	
              Very
                truly yours,

              

              R.
                A. LENS ER AND ASSOCIATES, INC.

               

              Ronald
                A. Lenser

              Registered
                Professional Engineer PE
                No. 30558

            

    

    

    RAL/rsr

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    PETROLEUM
      RESERVES DEFINITIONS

     

    SOCIETY
      OF PETROLEUM ENGINEERS (SEE)

     

    AND

     

    WORLD
      PETROLEUM CONGRESSES (WPC)

    RESERVES

     

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

     

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

     

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

     

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

     

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

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    RESERVES (Continued)

    

    

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

    

    

    PROVED
      RESERVES

    

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

    

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

    

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

    

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

    

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

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    PROVED
      RESERVE (Continued)

     

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

    

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

    

    

    UNPROVED
      RESERVES

    

    

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

    

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

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    PROBABLE
      RESERVES

    

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

    

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

    

    

    POSSIBLE
      RESERVES

    

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

    

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

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    RESERVE
      STATUS CATEGORIES

     

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

    

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

     

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

     

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

     

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

     

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

    

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

     

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

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    

    
      	
               

              RBA.
                LENSER &ASSOCIATES

              HOUSTON,
                TEXAS

               

            	 	 	 	 	 	 	 	
               

              TABLE
                A

              PAGE
                1

               

            
	
               

              AQUATIC
                CELLULOSE INTERNATIONAL CORP.

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

              AS
                OF JANUARY 1,
                2005

               

            
	 	 	 

              8/8
                RESERVES

            	 	 	 	 	 
	 LEASE
              / WELL NAME	
              RESERVE

              CATEGORY  

            	
              OIL

              MBBLS

            	
               NIL

              MBBLS

            	
              GAS

              MMCF 

            	
               WORKING

              INTEREST

            	
               REVENUE

              INTEREST

            	
               OIL

              PRICE

              $/BBL

            	
               GAS

              PRICE

              $/MCF

            	
               TABLE

              NUMBER

            
	
              PROVED
                RESERVES

              K
                M
                F A-1 #20

            	
               

              1
                PVPD

            	
               

              2.499

            	
               

              0.000

            	
               

              0

            	
               

              0.4946

            	
               

              0.3957

            	
               

              41.25

            	
               

              0.00

            	
               

              8

            
	
              KMF
                LEASE 2 #701

            	
              1
                PVPD

            	
              0.967

            	
              0.000

            	
              0

            	
              0.4946

            	
              0.3957

            	
              41B25

            	
              0.00

            	
              9

            
	
              HOMILY
                & HOMILY NO. 10

            	
              1
                PVPD

            	
              0.000

            	
              0.000

            	
              78

            	
              0.2000

            	
              0.1600

            	
              0.00

            	
              5.10

            	
              18

            
	
              HOMILY
                & HOMILY NO. 17

            	
              1
                PVPD

            	
              0.000

            	
              0.000

            	
              100

            	
              0.2000

            	
              0.1600

            	
              0.00

            	
              5.10

            	
              19

            
	
              HOMILY
                & HAMILL NO. 19

            	
              1
                PVPD

            	
              0.000

            	
              0B000

            	
              68

            	
              0.2000

            	
              0.1600

            	
              0.00

            	
              5.10

            	
              20

            
	
              HAMILL
                & HAMILL NO. 21

            	
              3PVUD

            	
              0.000

            	
              0.000

            	
              549

            	
              0.2000

            	
              0B1600

            	
              0.00

            	
              5B10

            	
              21

            
	
              HAMILL
                & HAMILL NO. 22

               

            	
              3PVUD

               

            	
              0.000

               

            	
              0.000

               

            	
              734

               

            	
              0.2000

               

            	
              0.1600

               

            	
              0.00

               

            	
              5.10

               

            	
              22

               

            
	
               

              GRAND
                TOTAL PROVED

               

            	
               

            	
               

              3.466

               

            	
               

              0B000

               

            	
               

              1529

               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	
               

              POSSIBLE
                RESERVES

               

              HAMILL
                & HAMILL LOO. 1 PSEUDO

            	
               

              1
                PVPD

            	
               

              0.000

            	
               

              0.000

            	
               

              3545

            	
               

              0.2000

            	
               

              0.1600

            	
               

              0.00

            	
               

              5.10

            	
               

              12

            
	
              HAMILL
                & HAMILL LOO. 2 PSEUDO

            	
              1
                PVPD

            	
              0.000

            	
              0B000

            	
              3411

            	
              0.2000

            	
              0.1600

            	
              0.00

            	
              5.10

            	
              13

            
	
              HAMILL
                & HAMILL LOO. 3 PSEUDO

            	
              1
                PVPD

            	
              0.000

            	
              0.000

            	
              1772

            	
              0.2000

            	
              0B1600

            	
              0.00

            	
              5.10

            	
              14

            
	
              HAMILL
                & HAMILL LOO. 4 PSUD1

            	
              1
                PVPD

            	
              0.000

            	
              0.000

            	
              1212

            	
              0.2000

            	
              0.1600

            	
              0.00

            	
              5.10

            	
              15

            
	
              HAMILL
                & HAMILL LOO. 5 PSUD1

            	
              1
                PVPD

            	
              0.000

            	
              0.000

            	
              2377

            	
              0.2000

            	
              0.1600

            	
              0.00

            	
              5.10

            	
              16

            
	
              HAMILL
                & HAMILL LOO. 6 PSUD1

               

            	
              3PVUD

               

            	
              0.000

               

            	
              0.000

               

            	
              586

               

            	
              0.2000

               

            	
              0.1600

               

            	
              0.00

               

            	
              5.10

               

            	
              17

               

            
	
               

              GRAND
                TOTAL POSSIBLE

            	
               

            	
               

              0.000

            	
               

              0.000

            	
               

              12903

            	 	 	 	 	 

    

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

     

    
      	
              R.A.LENSER & ASSOCIATES 

              HOUSTON, TEXAS

            	
              TABLE
                B

              PAGE
                1

               

            

    

     

     

    
      	
               AQUATIC
                CELLULOSE INTERNATIONAL CORP.

              SUMMARY
                OF 8/8ths RESERVES AND INCOME DATA

              AS
                OF JANUARY 1, 2005

            
	 	 	 	 	 	 	 	 	 	 	 
	 	
              NET
                RESERVES 

            	 	 	 	 	 	 
	 LEASE
              / WELL NAME	
              RESERVE

              CATEGORY 

            	
               OIL

              MBBLS

            	
               NIL

              MBBLS

            	
              GAS

              MMCF 

            	
               GROSS

              REVENUE

              --M$--

            	
               TOTAL

              EXPENSES

              --M$--

            	
               CAPITAL

              EXPENSE

              ---M$---

            	
               BFINET

              INCOME-

              ---M$---

            	
               DISCNET

              INCOME

              @
                10%

              ----
                M$--

            	
               TABLE

              NUMBER

            
	 	 	 	 	 	 	 	 	 	 	 
	
              PROVED
                RESERVES

              K
                M
                F A-1 #20

            	
               

              1PVPD

            	
               

              0.989

            	
               

              0.000

            	
               

              0

            	
               

              40.8

            	
               

              29.7

            	
               

              0.0

            	
               

              11.1

            	
               

              10.5

            	
               

              8

            
	
              KMF
                LEASE 2
                #701

            	
              1
                PVPD

            	
              0.383

            	
              0.000

            	
              0

            	
              15.8

            	
              13.9

            	
              0.0

            	
              1.9

            	
              1.9

            	
              9

            
	
              HAMILL
                & HAMILL NO. 10

            	
              1PVPD

            	
              0B000

            	
              0.000

            	
              13

            	
              63.8

            	
              27.0

            	
              0.0

            	
              36.8

            	
              31B7

            	
              18

            
	
              HAMILL
                & HAMILL NO. 17

            	
              1
                PVPD

            	
              0.000

            	
              0.000

            	
              16

            	
              81.5

            	
              17.0

            	
              0.0

            	
              64.5

            	
              60.5

            	
              19

            
	
              HAMILL
                & HAMILL NO. 19

            	
              1
                PVPD

            	
              0.000

            	
              0.000

            	
              11

            	
              55.2

            	
              8.5

            	
              0.0

            	
              46.8

            	
              45.8

            	
              20

            
	
              HAMILL
                & HAMILL NO. 21

            	
              3PVUD

            	
              0.000

            	
              0B000

            	
              88

            	
              448.0

            	
              68.1

            	
              127.0

            	
              252.9

            	
              176.4

            	
              21

            
	
              HAMILL
                & HAMILL NO. 22

               

            	
              3PVUD

               

            	
              0.000

               

            	
              0.000

               

            	
              117

               

            	
              598.9

               

            	
              87.1

               

            	
              127.0

               

            	
              384B9

               

            	
              267B0

               

            	
              22

               

            
	
               

              GRAND
                TOTAL PROVED

               

            	
               

            	
               

              1B372

               

            	
               

              0B000

               

            	
               

              245

               

            	
               

              1304B0

               

            	
               

              251B3

               

            	
               

              254.0

               

            	
               

              798B9

               

            	
               

              593B8

               

            	
               

            
	
               

              POSSIBLE
                RESERVES

               

              HAMILL
                & HAMILL LOO. 1 PST

            	
               

              9PSUD

            	
               

              0.000

            	
               

              0.000

            	
               

              567

            	
               

              2892.3

            	
               

              419B7

            	
               

              171.0

            	
               

              2301.6

            	
               

              839B1

            	
               

              12

            
	
              HAMILL
                & HAMILL LOO. 2
                PST

            	
              9PSUD

            	
              0.000

            	
              0.000

            	
              546

            	
              2783B4

            	
              404B1

            	
              171B0

            	
              2208.2

            	
              806B5

            	
              13

            
	
              HAMILL
                & HAMILL LOO. 3
                PST

            	
              9PSUD

            	
              0.000

            	
              0B000

            	
              284

            	
              1445.9

            	
              209.8

            	
              157.0

            	
              1079.1

            	
              554.2

            	
              14

            
	
              HAMILL
                & HAMILL LOO. 4
                PST

            	
              9PSUD

            	
              0.000

            	
              0.000

            	
              194

            	
              989B0

            	
              143.6

            	
              157.0

            	
              688.4

            	
              390.7

            	
              15

            
	
              HAMILL
                & HAMILL LOO. 5
                PST

            	
              9PSUD

            	
              0.000

            	
              0.000

            	
              380

            	
              1939.6

            	
              281.7

            	
              164.0

            	
              1493.9

            	
              628.2

            	
              16

            
	
              HAMILL
                & HAMILL LOO. 6
                PST

               

            	
              9PSUD

               

            	
              0.000

               

            	
              0B000

               

            	
              94

               

            	
              478.2

               

            	
              69.4

               

            	
              150.0

               

            	
              258.8

               

            	
              162B7

               

            	
              17

               

            
	
               

              GRAND
                TOTAL POSSIBLE

            	
               

            	
               

              0B000

            	
               

              0B000

            	
               

              2065

            	
               

              10528B4

            	
               

              1528B3

            	
               

              970B0

            	
               

              8030.0

            	
               

              3381B4

            	 

    

    

     

    
 

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
       

      
        	
                R.A.LENSER & ASSOCIATES 

                HOUSTON, TEXAS

              	
                TABLE
                  C

                PAGE

                 

              

      

       

AQUATIC
      CELLULOSE INTERNATIONAL CORP.

    SUMMARY
      OF 8/8ths RESERVES AND INCOME DATA

    RANKED
      BY FUTURE NET RESERVES AND INCOME DATA

     

    AS
      OF JANUARY 1, 2005

     

    
      	
            	 	 	 	 	 	 	 	 	 	 
	 	
              NET
                RESERVES 

            	 	 	 	 	 	 
	 LEASE
              / WELL NAME	
              RESERVE

              CATGORY 

            	
               OIL

              MBBLS

            	
               NIL

              MBBLS

            	
              GAS

              MMCF 

            	
               GROSS

              REVENUE

              --M$--

            	
               TOTAL

              EXPENSES

              --M$--

            	
               CAPITAL

              EXPENSE

              ---M$---

            	
               BFINET

              INCOME-

              ---M$---

            	
               DISCNET

              INCOME

              @
                10%

              ----
                M$--

            	
               TABLE

              NUMBER

            

    

     

    
      	
               

               

              PROVED
                RESERVES

               

              HAMILL
                & HAMILL NO. 22

            	
               

              3PVUD

            	
               

              0.000

            	
               

              0.000

            	
               

              117

            	
               

              598.9

            	
               

              87.1

            	
               

              127.0

            	
               

              384.9

            	
               

              267.0

            	
               

              22

            
	
              HAMILL
                & HAMILL NO. 21

            	
              3PVUD

            	
              0.000

            	
              0.000

            	
              88

            	
              448.0

            	
              68.1

            	
              127.0

            	
              252.9

            	
              176.4

            	
              21

            
	
              HAMILL
                & HAMILL NO. 17

            	
              1PVPD

            	
              0.000

            	
              0.000

            	
              16

            	
              81.5

            	
              17.0

            	
              0.0

            	
              64.5

            	
              60.5

            	
              19

            
	
              HAMILL
                & HAMILL NO. 19

            	
              1PVPD

            	
              0.000

            	
              0.000

            	
              11

            	
              55.2

            	
              8.5

            	
              0.0

            	
              46.8

            	
              45.8

            	
              20

            
	
              HAMILL
                & HAMILL NO. 10

            	
              1
                PVPD

            	
              0.000

            	
              0.000

            	
              13

            	
              63.8

            	
              27B0

            	
              0.0

            	
              36.8

            	
              31.7

            	
              18

            
	
              K
                M
                F A-1 #20

            	
              1
                PVPD

            	
              0.989

            	
              0B000

            	
              0

            	
              40.8

            	
              29.7

            	
              0.0

            	
              11.1

            	
              10.5

            	
              8

            
	
              KMF
                LEASE 2
                #701

               

            	
              1
                PVPD

               

            	
              0.383

               

            	
              0.000

               

            	
              0

               

            	
              15.8

               

            	
              13.9

               

            	
              0.0

               

            	
              1.9

               

            	
              1.9

               

            	
              9

               

            
	
               

              GRAND
                TOTAL PROVED

               

            	
               

            	
               

              1B372

               

            	
               

              0B000

               

            	
               

              245

               

            	
               

              1304B0

               

            	
               

              251B3

               

            	
               

              254.0

               

            	
               

              798B9

               

            	
               

              593B8

               

            	
               

            
	
               

              POSSIBLE
                RESERVES

               

              HAMILL
                & HAMILL LOO. 1 PSU

            	
               

              9PSUD

            	
               

              0.000

            	
               

              0.000

            	
               

              567

            	
               

              2892.3

            	
               

              419.7

            	
               

              171B0

            	
               

              2301.6

            	
               

              839.1

            	
               

              12

            
	
              HAMILL
                & HAMILL LOO. 2
                PSU

            	
              9PSUD

            	
              0.000

            	
              0.000

            	
              546

            	
              2783.4

            	
              404.1

            	
              171.0

            	
              2208.2

            	
              806.5

            	
              13

            
	
              HAMILL
                & HAMILL LOO. 5 PSU

            	
              9PSUD

            	
              0.000

            	
              0.000

            	
              380

            	
              1939.6

            	
              281.7

            	
              164.0

            	
              1493.9

            	
              628.2

            	
              16

            
	
              HAMILL
                & HAMILL LOC.B 3
                PSU

            	
              9PSUD

            	
              0B000

            	
              0.000

            	
              284

            	
              1445.9

            	
              209.8

            	
              157.0

            	
              1079.1

            	
              554.2

            	
              14

            
	
              HAMILL
                & HAMILL LOO. 4
                PSU

            	
              9PSUD

            	
              0.000

            	
              0.000

            	
              194

            	
              989.0

            	
              143.6

            	
              157.0

            	
              688.4

            	
              390.7

            	
              15

            
	
              HAMILL
                & HAMILL LOO. 6
                PSU

               

            	
              9PSUD

               

            	
              0.000

               

            	
              0.000

               

            	
              94

               

            	
              478.2

               

            	
              69B4

               

            	
              150.0

               

            	
              258.8

               

            	
              162.7

               

            	
              17

               

            
	
               

              GRAND
                TOTAL POSSIBLE

            	
               

            	
               

              0B000

            	
               

              0B000

            	
               

              2065

            	
               

              10528B4

            	
               

              1528B3

            	
               

              970B0

            	
               

              8030B0

            	
               

              3381.4

            	
               

            

    

     

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   PRADO FLD, JIM HOGG CO, TX                                                                             TABLE    6
   OPERATOR: CENTURY RES INC
   RESERVOIR: GOVERNMENT WELLS MID                                                                      RESERVE TYPE
   K M F A-1 #20                                                                                      PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL       .4946400   .3957100    .3957100   .0000000           41.25        .00         .00         10.0000        10.537
 FINAL         .4946399   .3957100    .3957100   .0000000           41.25        .00         .00         15.0000        10.272
                                                                                                         20.0000        10.028
 REMARKS                                                                                                 25.0000         9.802
                                                                                                         30.0000         9.593
                                                                                                         35.0000         9.398

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      1.          1.514           .000             0.           .599           .000             0.        41.25        .00
 12-06      1.           .985           .000             0.           .390           .000             0.        41.25        .00
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

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

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

       

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

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

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

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05          13723.             0.             0.             0.         13723.          8961.          8961.          8608.
 12-06          12580.             0.             0.             0.         12580.          2182.         11142.          1929.
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

       

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   PRADO FLD, JIM HOGG CO, TX                                                                             TABLE    7
   OPERATOR: CENTURY RES INC
   RESERVOIR: COMBINED ZONES                                                                            RESERVE TYPE
   KMF LEASE 2 #701                                                                                   PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL       .4946400   .3957100    .3957100   .0000000           41.25        .00         .00         10.0000         1.853
 FINAL         .4946400   .3957100    .3957100   .0000000           41.25        .00         .00         15.0000         1.828
                                                                                                         20.0000         1.805
 REMARKS                                                                                                 25.0000         1.784
                                                                                                         30.0000         1.763
                                                                                                         35.0000         1.744

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      1.           .967           .000             0.           .383           .000             0.        41.25        .00
 12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

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

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

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05          12580.             0.             0.             0.         12580.          1908.          1908.          1853.
 12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   PRADO FIELD                                                                                            TABLE 5
   PROVED PRODUCING RESERVES
                                                                                                        RESERVE TYPE
           PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000        12.390
 FINAL                                                                                                   15.0000        12.101
                                                                                                         20.0000        11.833
                                                                                                         25.0000        11.586
                                                                                                         30.0000        11.356
                                                                                                         35.0000        11.142

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      2.          2.481           .000             0.           .982           .000             0.        41.25        .00
 12-06      1.           .985           .000             0.           .390           .000             0.        41.25        .00
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

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

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

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05          26303.             0.             0.             0.         26303.         10869.         10869.         10461.
 12-06          12580.             0.             0.             0.         12580.          2182.         13050.          1929.
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT FIELD                                                                                          TABLE 9
   PROVED PRODUCING RESERVES
                                                                                                        RESERVE TYPE
  PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000       137.955
 FINAL                                                                                                   15.0000       133.729
                                                                                                         20.0000       129.944
                                                                                                         25.0000       126.531
                                                                                                         30.0000       123.435
                                                                                                         35.0000       120.611

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      3.           .000           .000           163.           .000           .000            26.          .00       5.10
 12-06      2.           .000           .000            50.           .000           .000             8.          .00       5.10
 12-07      1.           .000           .000            17.           .000           .000             3.          .00       5.10
 12-08      1.           .000           .000            14.           .000           .000             2.          .00       5.10
 12-09      1.           .000           .000             2.           .000           .000             0.          .00       5.10
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

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

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

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

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

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

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

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

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

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

       

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT FIELD                                                                                          TABLE 10
   PROVED UNDEVELOPED RESERVES
                                                                                                        RESERVE TYPE
 PROVED UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000       443.408
 FINAL                                                                                                   15.0000       374.363
                                                                                                         20.0000       318.314
                                                                                                         25.0000       272.364
                                                                                                         30.0000       234.353
                                                                                                         35.0000       202.650

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00
 12-06      1.           .000           .000           313.           .000           .000            50.          .00       5.10
 12-07      2.           .000           .000           299.           .000           .000            48.          .00       5.10
 12-08      2.           .000           .000           286.           .000           .000            46.          .00       5.10
 12-09      2.           .000           .000           308.           .000           .000            49.          .00       5.10
 12-10      1.           .000           .000            78.           .000           .000            12.          .00       5.10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

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

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

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

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

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

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

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

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

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

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT FIELD                                                                                          TABLE 8
   TOTAL PROVED RESERVES
                                                                                                        RESERVE TYPE
    TOTAL PROVED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000       581.363
 FINAL                                                                                                   15.0000       508.092
                                                                                                         20.0000       448.258
                                                                                                         25.0000       398.895
                                                                                                         30.0000       357.788
                                                                                                         35.0000       323.261

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      3.           .000           .000           163.           .000           .000            26.          .00       5.10
 12-06      3.           .000           .000           363.           .000           .000            58.          .00       5.10
 12-07      3.           .000           .000           316.           .000           .000            51.          .00       5.10
 12-08      3.           .000           .000           300.           .000           .000            48.          .00       5.10
 12-09      2.           .000           .000           310.           .000           .000            50.          .00       5.10
 12-10      1.           .000           .000            78.           .000           .000            12.          .00       5.10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

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

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

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

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

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

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

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

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

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

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT FIELD                                                                                          TABLE  11
   POSSIBLE UNDEVELOPED RESERVES
                                                                                                        RESERVE TYPE
         POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000      3381.313
 FINAL                                                                                                   15.0000      2406.486
                                                                                                         20.0000      1787.106
                                                                                                         25.0000      1371.250
                                                                                                         30.0000      1079.377
                                                                                                         35.0000       867.067

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00
 12-06      0.           .000           .000           143.           .000           .000            23.          .00       5.10
 12-07      4.           .000           .000          1156.           .000           .000           185.          .00       5.10
 12-08      6.           .000           .000          1398.           .000           .000           224.          .00       5.10
 12-09      6.           .000           .000           945.           .000           .000           151.          .00       5.10
 12-10      6.           .000           .000           641.           .000           .000           103.          .00       5.10
 12-11      5.           .000           .000           456.           .000           .000            73.          .00       5.10
 12-12      5.           .000           .000          1306.           .000           .000           209.          .00       5.10
 12-13      5.           .000           .000          1051.           .000           .000           168.          .00       5.10
 12-14      5.           .000           .000           694.           .000           .000           111.          .00       5.10
 12-15      4.           .000           .000           456.           .000           .000            73.          .00       5.10
 12-16      4.           .000           .000           419.           .000           .000            67.          .00       5.10
 12-17      4.           .000           .000           657.           .000           .000           105.          .00       5.10
 12-18      3.           .000           .000           720.           .000           .000           115.          .00       5.10
 12-19      3.           .000           .000           502.           .000           .000            80.          .00       5.10

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

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

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

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

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

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

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

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

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

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

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

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   18
   OPERATOR: CENTURY RES INC
   RESERVOIR: MIOCENE 3435                                                                              RESERVE TYPE
   HAMILL & HAMILL NO. 10                                                                             PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000        31.663
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000        29.624
                                                                                                         20.0000        27.858
 REMARKS                                                                                                 25.0000        26.314
                                                                                                         30.0000        24.956
                                                                                                         35.0000        23.753

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      1.           .000           .000            25.           .000           .000             4.          .00       5.10
 12-06      1.           .000           .000            21.           .000           .000             3.          .00       5.10
 12-07      1.           .000           .000            17.           .000           .000             3.          .00       5.10
 12-08      1.           .000           .000            14.           .000           .000             2.          .00       5.10
 12-09      1.           .000           .000             2.           .000           .000             0.          .00       5.10
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

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

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

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

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

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

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

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

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

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

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   19
   OPERATOR: CENTURY RES INC
   RESERVOIR: MIOCENE 4230-4233                                                                         RESERVE TYPE
   HAMILL & HAMILL NO. 17                                                                             PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000        60.463
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000        58.705
                                                                                                         20.0000        57.092
 REMARKS                                                                                                 25.0000        55.607
                                                                                                         30.0000        54.234
                                                                                                         35.0000        52.960

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      1.           .000           .000            71.           .000           .000            11.          .00       5.10
 12-06      1.           .000           .000            29.           .000           .000             5.          .00       5.10
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

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

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

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

       12-06             0.             0.         23836.          0.      23836.            1788.           834.              21214.
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05           4800.             0.             0.             0.          4800.         46489.         46489.         44559.
 12-06           3200.             0.             0.             0.          3200.         18014.         64504.         15904.
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   20
   OPERATOR: CENTURY RES INC
   RESERVOIR: 4300                                                                                      RESERVE TYPE
   HAMILL & HAMILL NO. 19                                                                             PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000        45.829
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000        45.400
                                                                                                         20.0000        44.994
 REMARKS                                                                                                 25.0000        44.610
                                                                                                         30.0000        44.245
                                                                                                         35.0000        43.898

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      1.           .000           .000            68.           .000           .000            11.          .00       5.10
 12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

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

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

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-05           2400.             0.             0.             0.          2400.         46768.         46768.         45829.
 12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   21
   OPERATOR: CENTURY RESOURCES
   RESERVOIR: 4220 & 4170                                                                               RESERVE TYPE
   HAMILL & HAMILL NO. 21                                                                             PROVED UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000       176.408
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000       148.747
                                                                                                         20.0000       126.079
 REMARKS                                                                                                 25.0000       107.341
                                                                                                         30.0000        91.730
                                                                                                         35.0000        78.631

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00
 12-06      1.           .000           .000           142.           .000           .000            23.          .00       5.10
 12-07      1.           .000           .000           132.           .000           .000            21.          .00       5.10
 12-08      1.           .000           .000           181.           .000           .000            29.          .00       5.10
 12-09      1.           .000           .000            90.           .000           .000            14.          .00       5.10
 12-10      1.           .000           .000             3.           .000           .000             1.          .00       5.10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

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

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

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

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

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

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

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

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

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

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   22
   OPERATOR: CENTURY RESOURCES
   RESERVOIR: 2750' & 4040'                                                                             RESERVE TYPE
   HAMILL & HAMILL NO. 22                                                                             PROVED UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000       266.999
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000       225.616
                                                                                                         20.0000       192.235
 REMARKS                                                                                                 25.0000       165.023
                                                                                                         30.0000       142.622
                                                                                                         35.0000       124.019

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00
 12-06      1.           .000           .000           171.           .000           .000            27.          .00       5.10
 12-07      1.           .000           .000           167.           .000           .000            27.          .00       5.10
 12-08      1.           .000           .000           104.           .000           .000            17.          .00       5.10
 12-09      1.           .000           .000           217.           .000           .000            35.          .00       5.10
 12-10      1.           .000           .000            75.           .000           .000            12.          .00       5.10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

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

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

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

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

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

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

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

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

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

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   GRAND TOTAL                                                                                            TABLE 2
   PROVED PRODUCING RESERVES
                                                                                                        RESERVE TYPE
  PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000       150.345
 FINAL                                                                                                   15.0000       145.830
                                                                                                         20.0000       141.778
                                                                                                         25.0000       138.117
                                                                                                         30.0000       134.791
                                                                                                         35.0000       131.753

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      4.          2.481           .000           163.           .982           .000            26.        41.25       5.10
 12-06      3.           .985           .000            50.           .390           .000             8.        41.25       5.10
 12-07      1.           .000           .000            17.           .000           .000             3.          .00       5.10
 12-08      1.           .000           .000            14.           .000           .000             2.          .00       5.10
 12-09      1.           .000           .000             2.           .000           .000             0.          .00       5.10
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

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

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

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

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

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

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

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

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

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

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   GRAND TOTAL                                                                                            TABLE 3
   PROVED UNDEVELOPED RESERVES
                                                                                                        RESERVE TYPE
 PROVED UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000       443.408
 FINAL                                                                                                   15.0000       374.363
                                                                                                         20.0000       318.314
                                                                                                         25.0000       272.364
                                                                                                         30.0000       234.353
                                                                                                         35.0000       202.650

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00

       

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

      

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

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

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

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

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

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

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

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

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

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

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

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

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   GRAND TOTAL                                                                                            TABLE 1
   TOTAL PROVED RESERVES
                                                                                                        RESERVE TYPE
    TOTAL PROVED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000       593.753
 FINAL                                                                                                   15.0000       520.193
                                                                                                         20.0000       460.092
                                                                                                         25.0000       410.481
                                                                                                         30.0000       369.143
                                                                                                         35.0000       334.403

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      4.          2.481           .000           163.           .982           .000            26.        41.25       5.10
 12-06      4.           .985           .000           363.           .390           .000            58.        41.25       5.10
 12-07      3.           .000           .000           316.           .000           .000            51.          .00       5.10
 12-08      3.           .000           .000           300.           .000           .000            48.          .00       5.10
 12-09      2.           .000           .000           310.           .000           .000            50.          .00       5.10
 12-10      1.           .000           .000            78.           .000           .000            12.          .00       5.10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19

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

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

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

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

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

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

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

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

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

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

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

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   12
   OPERATOR: CENTURY RESOURCES
   RESERVOIR: 6348',5808',5526',364                                                                     RESERVE TYPE
   HAMILL & HAMILL LOC. 1 PSUD1                                                                       POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000       839.102
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000       573.540
                                                                                                         20.0000       415.793
 REMARKS    ESTIMATE WELL DRILLED & ON PRODUCTION 04/2006                                                25.0000       315.219
                                                                                                         30.0000       247.234
                                                                                                         35.0000       199.037

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00
 12-06      1.           .000           .000           113.           .000           .000            18.          .00       5.10
 12-07      1.           .000           .000           272.           .000           .000            44.          .00       5.10
 12-08      1.           .000           .000           193.           .000           .000            31.          .00       5.10
 12-09      1.           .000           .000           138.           .000           .000            22.          .00       5.10
 12-10      1.           .000           .000            98.           .000           .000            16.          .00       5.10
 12-11      1.           .000           .000            94.           .000           .000            15.          .00       5.10
 12-12      1.           .000           .000           299.           .000           .000            48.          .00       5.10
 12-13      1.           .000           .000           217.           .000           .000            35.          .00       5.10
 12-14      1.           .000           .000           157.           .000           .000            25.          .00       5.10
 12-15      1.           .000           .000           114.           .000           .000            18.          .00       5.10
 12-16      1.           .000           .000            82.           .000           .000            13.          .00       5.10
 12-17      1.           .000           .000           198.           .000           .000            32.          .00       5.10
 12-18      1.           .000           .000           258.           .000           .000            41.          .00       5.10
 12-19      1.           .000           .000           183.           .000           .000            29.          .00       5.10

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

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

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

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

       

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

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

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

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

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

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

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

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   13
   OPERATOR: CENTURY RESOURCES
   RESERVOIR: 6348',5808',5526',364                                                                     RESERVE TYPE
   HAMILL & HAMILL LOC. 2 PSUD1                                                                       POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000       806.453
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000       548.447
                                                                                                         20.0000       394.817
 REMARKS    ESTIMATE WELL DRILLED & ON PRODUCTION 04/2006                                                25.0000       296.919
                                                                                                         30.0000       230.912
                                                                                                         35.0000       184.305

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

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

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

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

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

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

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

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

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

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

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

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   14
   OPERATOR: CENTURY RESOURCES
   RESERVOIR: 5808',5526'                                                                               RESERVE TYPE
   HAMILL & HAMILL LOC. 3 PSUD1                                                                       POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000       554.199
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000       414.131
                                                                                                         20.0000       316.731
 REMARKS    ESTIMATE WELL DRILLED & ON PRODUCTION 04/2006                                                25.0000       247.185
                                                                                                         30.0000       196.335
                                                                                                         35.0000       158.354

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00

      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

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

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

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

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

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

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

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

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

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

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

      
        
          
          

        

        
          50

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   15
   OPERATOR: CENTURY RESOURCES
   RESERVOIR: 6348',5808'                                                                               RESERVE TYPE
   HAMILL & HAMILL LOC. 4 PSUD1                                                                       POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000       390.651
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000       302.858
                                                                                                         20.0000       238.619
 REMARKS    ESTIMATE WELL DRILLED & ON PRODUCTION 04/2006                                                25.0000       190.706
                                                                                                         30.0000       154.347
                                                                                                         35.0000       126.324

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00

      
        
          
          

        

        
          51

          
            

          

        

        
          
          

        

      

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

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

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

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

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

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

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

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

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

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

      
         

        
          
            
            

          

          
            52

            
              

            

          

          
            
            

          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   16
   OPERATOR: CENTURY RESOURCES
   RESERVOIR: 6348',5808',5526'                                                                         RESERVE TYPE
   HAMILL & HAMILL LOC. 5 PSUD1                                                                       POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000       628.206
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000       436.544
                                                                                                         20.0000       314.806
 REMARKS    ESTIMATE WELL DRILLED & ON PRODUCTION 04/2006                                                25.0000       234.197
                                                                                                         30.0000       178.827
                                                                                                         35.0000       139.555

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00

       

      
        
          
          

        

        
          53

          
            

          

        

        
          
          

        

      

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

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

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

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

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

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

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

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

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

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

      
        
          
          

        

        
          54

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   SARGENT SOUTH FLD, MATAGORDA CO,                                                                       TABLE   17
   OPERATOR: CENTURY RESOURCES
   RESERVOIR: 6348'                                                                                     RESERVE TYPE
   HAMILL & HAMILL LOC. 6 PSUD1                                                                       POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL       .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         10.0000       162.702
 FINAL         .2000000   .0000000    .0000000   .1600000             .00        .00        5.10         15.0000       130.966
                                                                                                         20.0000       106.341
 REMARKS    ESTIMATE WELL DRILLED & ON PRODUCTION 04/2006                                                25.0000        87.024
                                                                                                         30.0000        71.723
                                                                                                         35.0000        59.492

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00
 12-06      0.           .000           .000             0.           .000           .000             0.          .00        .00

      
        
          
          

        

        
          55

          
            

          

        

        
          
          

        

      

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

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

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

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

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

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

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

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

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

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

      
        
          
          

        

        
          56

          
            

          

        

        
          
          

        

      

      _&l7E_&a5L_&l4.5C_&k2S
R.A.LENSER & ASSOCIATES                               AQUATIC CELLULOSE
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2005
   GRAND TOTAL                                                                                            TABLE 4
   POSSIBLE UNDEVELOPED RESERVES
                                                                                                        RESERVE TYPE
         POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000      3381.313
 FINAL                                                                                                   15.0000      2406.486
                                                                                                         20.0000      1787.106
                                                                                                         25.0000      1371.250
                                                                                                         30.0000      1079.377
                                                                                                         35.0000       867.067

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------      --AVERAGE PRICES--

 -END-
 MO-YR WELLS       Oil/Cond      Plant Prod.        Gas          Oil/Cond      Plant Prod      Sales Gas       Oil/Co     Gas
 ----- ------    ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--      --$/bbl  --$/MCF--
 12-05      0.           .000           .000             0.           .000           .000             0.          .00        .00

      
        
          
          

        

        
          57

          
            

          

        

        
          
          

        

      

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

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

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

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

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

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

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

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

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

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

      
        
          
          

        

        
          58Unassociated Document

    
      
         

          
            

          

        

        Exhibit
          10.6

        

          AQUATIC
            CELLULOSE INTERNATIONAL CORP.

        

        

         

        

          ESTIMATED

          

          RESERVES
            AND FUTURE INCOME

          

          ATTRIBUTABLE
            TO CERTAIN

          

          LEASEHOLD
            INTERESTS

        

        

         

        

        

          As
            of

          

          January
            1, 2006

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        

          TABLE
            OF CONTENTS

          

          AQUATIC
            CELLULOSE INTERNATIONAL CORP.

          
             

          

        

        
          
            	
                    DISCUSSION

                  	 
	 	 
	
                    ONE
                      LINE SUMMARIES

                  	 
	
                     

                  	 
	
                    Summary
                      of Estimated 8/8ths Reserves

                  	
                    A

                  
	
                    Summary
                      of Net Reserves and Income Data

                  	
                    B

                  
	
                    Summary
                      of Net Reserves and Income Data - 

                  	 
	
                    Ranked
                      by Future Net Income Discounted at 10%

                  	
                    C

                  
	 	 
	
                    GRAND
                      SUMMARIES

                  	 
	 	 
	
                    Total
                      Proved Reserves

                  	
                    1

                  
	
                    Total
                      Proved Producing Reserves

                  	
                    2

                  
	
                    Total
                      Proved Undeveloped Reserves

                  	
                    3

                  
	
                    Total
                      Possible Undeveloped Reserves

                  	
                    4

                  
	 	 
	
                    LEASEHOLD
                      PROJECTIONS

                  	 
	 	 
	
                    Sargent
                      South Field, Matagorda Co, TX 

                  	
                    5-23

                  

          

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          

          April
            7, 2006

           

          Aquatic
            Cellulose International Corp.

          Suite
            5, 2504-43rd
            St.

          Vernon,
            British Columbia

          Canada
            V1T 6L1

          

          Attention
            Mr. Sheridan Westgarde

          

          Dear
            Mr.
            Westgarde:

          

          As
            requested, we have made an estimate of the reserves and future production
            and
            income attributable to certain leasehold interests of Aquatic Cellulose
            International Corp. as of January 1, 2006. This report is based on constant
            prices and costs as set forth in this letter. The subject properties
            are located
            in the Sargent South Field, Matagorda County, Texas. The results of this
            study
            are summarized below:

          

          

          Aquatic
            Cellulose International Corp.

          Estimated
            Net Reserves and Income Data

          Attributable
            to Certain Leasehold Interests

          As
            of January 1, 2006

           

          
            
              
                
                  	
                           

                        	 	
                           Proved
Producing

                        	 	
                           Proved
Undeveloped

                        	 	
                           Total
Proved

                        	
                           

                        
	
                          Remaining
                            Reserves

                        	 	 	 	 	 	 	 	 	 	 
	
                          Oil
                            / Condensate - MBbls

                        	 	 	
                          0

                        	 	 	
                          0

                        	 	 	
                          0

                        	 
	
                          Gas
                            - MMCF

                        	 	 	
                          122

                        	 	 	
                          205

                        	 	 	
                          328

                        	 
	 	 	 	 	 	 	 	 	 	 	 
	
                          Income
                            Data

                        	 	 	 	 	 	 	 	 	 	 
	
                          Future
                            Gross Revenue

                        	 	
                          $

                        	
                          947,892

                        	 	
                          $

                        	
                          1,591,741

                        	 	
                          $

                        	
                          2,539,633

                        	 
	
                          Deductions

                        	 	 	
                          109,800

                        	 	 	
                          529,073

                        	 	 	
                          638,873

                        	 
	
                          Future
                            Net Income

                        	 	
                          $

                        	
                          838,092

                        	 	
                          $

                        	
                          1,062,668

                        	 	
                          $

                        	
                          1,900,760

                        	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                          Discounted
                            FNI @ 10%

                        	 	
                          $

                        	
                          772,238

                        	 	
                          $

                        	
                          751,028

                        	 	
                          $

                        	
                          1,523,266

                        	 

                

                      

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

                

                      

                
                  
                    
                    

                  

                  
                    
                    

                    
                      

                    

                  

                  
                    
                    

                  

                

                

                  Aquatic
                    Cellulose International Corp. 
April 7, 2006 
Page
                    2  

                

              

            

          

        

        

          
            	
                     

                  	 	
                     Possible
Undeveloped

                  	 
	
                    Remaining
                      Reserves

                  	 	 	 	 
	
                    Oil
                      / Condensate - MBbls

                  	 	 	
                    0

                  	 
	
                    Gas
                      - MMCF

                  	 	 	
                    2,064

                  	 
	 	 	 	 	 
	
                    Income
                      Data

                  	 	 	 	 
	
                    Future
                      Gross Revenue

                  	 	
                    $

                  	
                    16,007,969

                  	 
	
                    Deductions

                  	 	 	
                    3,101,486

                  	 
	
                    Future
                      Net Income

                  	 	
                    $

                  	
                    12,906,482

                  	 
	 	 	 	 	 
	
                    Discounted
                      FNI @10%

                  	 	
                    $

                  	
                    5,611,746

                  	 

          

        

        

          The
            discounted future net income shown above is based on a discount rate
            of 10
            percent per annum compounded monthly. Future net income was discounted
            at five
            other discount rates, which are compounded monthly. These data are shown
            on each
            estimated projection of future production and income presented in a later
            section of this report and are summarized as follows:

          

          
            	
                    Discounted
                      Rate

                    Percent

                  	 	 	
                    Total
Proved

                  	 
	
                    15

                  	 	
                    $

                  	
                    1,384,722

                  	 
	
                    20

                  	 	
                    $

                  	
                    1,269,726

                  	 
	
                    25

                  	 	
                    $

                  	
                    1,173,243

                  	 
	
                    30

                  	 	
                    $

                  	
                    1,091,495

                  	 
	
                    35

                  	 	
                    $

                  	
                    1,021,603

                  	 

          

        

         

        
          These
            data are presented for your information and should not be construed as
            our
            estimate of fair market value.

          

          Liquid
            Hydrocarbon Volumes are expressed in thousands of barrels (MBbls). A
            barrel is
            equivalent to 42 United States gallons. Gas Volumes are expressed in
            millions of
            standard cubic feet (MMCF) at the contract temperature and pressure base
            of the
            state of Texas.

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

         

        
          Aquatic
            Cellulose International Corp. 
April 7, 2006

Page 3

        

      

    

     

    Reserve
      Definitions

    

    The
      proved reserves included herein conform to the definitions as set forth in
      the
      Securities and Exchange Commission's Regulation S-X Part 210.4-10 (a) as
      clarified by various Commission Staff Accounting Bulletins and to the
      definitions endorsed by the Society of Petroleum Engineers (SPE), the Society
      of
      Petroleum Evaluation Engineers (SPEE) and the World Petroleum Congresses (WPC).
      Definitions of these reserves are included immediately following
      this letter. 

     

    Estimate
      of Reserves

    

    Estimates
      of reserves were prepared by the use of geological and engineering methods
      generally accepted by the petroleum industry. The method or combination of
      methods utilized in the analysis of each reservoir was tempered by experience
      in
      the area, stage of development, quality and completeness of basic data, and
      production history.

    

    Where
      applicable, the volumetric method was employed for determining the original
      quantities of hydrocarbons in place. Structural and isopachous maps were
      furnished by New Century Energy Corp. and, after evaluation by us, were accepted
      as correct. These data were used in determining reservoir volumes. In some
      cases
      drainage areas were assigned based on analogy. Electrical logs, core analysis,
      and other available data were used to determine representative values for
      porosity and interstitial water saturation. Reserves based upon volumetric
      calculations or other methods such as analogy with offset wells are usually
      subject to greater revision than those based upon production and/or pressure
      performance data. Therefore, it may be necessary to revise these estimates
      up or
      down in the future as more reliable engineering data becomes
      available.

    

    Reserves
      of depletion-type reservoirs or those whose performance disclosed reliable
      decline in production-rate trends or other diagnostic characteristics were
      estimated by the application of appropriate decline curves or other performance
      relationships. In the analysis of production decline curves, reserves were
      established only to a calculated economic limit.

     

    Estimate
      of Future Producing Rates

    

    Initial
      production rates were based on the current rates for those reservoirs now on
      production. If no production decline was established, a decline profile
      analogous to similar wells was used. If a decline trend was established, this
      trend was used as the basis for estimating future rates.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Aquatic
      Cellulose International Corp.

April 7, 2006 
Page 4  

     

    Product
      Prices

    

    At
      the
      request of Aquatic Cellulose International Corp. this report was prepared using
      liquid hydrocarbon and gas prices in effect on December 31, 2005 and provided
      by
      New Century Energy Corp.

    

    Gas
      Prices

    

    For
      the
      current report, New Century Energy Corp. provided gas prices for each lease.
      The
      individual prices were held constant over the life of the reserves with no
      future price escalation due to inflation. The resulting overall average price
      for the gas reserves is $ 7.75 per MCF and accounts for 100.0 percent of the
      future gross income from all proved reserves.

    

    Income
      Data

    

    The
      future gross revenue is determined before deduction of production and ad valorem
      taxes. Future net income is determined after deduction of the normal costs
      of
      operating the wells, development costs, production taxes and ad valorem taxes.
      The operating costs, and development costs were held constant with no future
      price escalation due to inflation. The future net income is before deduction
      of
      state and federal income taxes and has not been adjusted for outstanding loans,
      which may exist. It does not include any adjustment for cash on hand or
      undistributed income.

    

    Neither
      the salvage value of lease equipment nor the cost to abandon the properties
      has
      been considered in this study.

    

    Table
      A
      presents a summary of the 8/8ths reserves, interests and prices for the subject
      properties by well. Table B presents a summary of net reserves and income data
      for the subject properties by well and Table C presents a summary of proved
      net
      reserves and income data ranked by 10% discounted future net income. Tables
      1
      through 4 are the Grand Summaries and Tables 5 through 23 are individual well
      cashflows alphabetically by well. Adjacent to each table, which represents
      our
      estimated projections for a particular property, is a production decline curve,
      which graphically illustrates past hydrocarbon production history and our
      estimated projection of future production.

    

    General

    

    The
      reserves included in this report are estimates only and should not be construed
      as being exact quantities. They may or may not be actually recovered and, if
      recovered, the revenues there from and the actual costs related thereto could
      be
      more or less than the estimated amounts. Because of governmental policies and
      uncertainties of supply and demand, the actual sales volumes and the prices
      received from the reserves, along with the costs incurred in recovering such
      reserves, may vary from those assumptions included in this report. Also,
      estimates of reserves may increase or decrease as a result of future
      operations.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Aquatic
      Cellulose International Corp.

April 7, 2006 
Page 5  

     

    We
      are
      qualified to perform engineering evaluations and do not claim expertise in
      accounting or legal matters. As in all aspects of oil and gas evaluation, there
      are uncertainties inherent in the interpretation of engineering data and,
      therefore, our conclusions necessarily represent only our best-informed
      professional judgments.

    

    The
      titles to the properties have not been examined by R. A. Lenser and Associates,
      Inc. nor has the actual degree or type of interest owned been independently
      confirmed. The data used in our estimates were obtained from New Century Energy
      Corp. and were accepted as accurate. For the purposes of this report, a field
      inspection of the properties was not performed nor was the mechanical operation
      or condition of the wells and their related facilities examined. We have not
      investigated possible environmen-tal liability related to the properties and,
      therefore, our estimates do not include any potential liability to restore
      and
      clean up any damages caused by past operations.

    

    We
      are
      independent petroleum engineers and geologists; we do not own an interest in
      these properties and are not employed on a contingent basis. Basic geologic
      and
      field performance data together with our engineering work sheets are maintained
      on file in our office and are available for review.

    

    Very
      truly yours,

    

    R.
      A. LENSER AND ASSOCIATES, INC.

    

    

    

    Ronald
      A. Lenser

    Registered
      Professional Engineer

    PE
      No. 30558

    

    RAL/hmg

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          	
                  R.A.
                    LENSER & ASSOCIATES, INC.

                  HOUSTON,
                    TEXAS

                	
                  TABLE
                    A

                

        

      

      

        AQUATIC
          CELLULOSE INTERNATIONAL CORP.

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

        AS
          OF JANUARY 1, 2006

         

        
          
            	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                    OIL

                  	
                     

                  	
                    GAS

                  	
                     

                  	
                     

                  	
                     

                  
	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                    RESERVE
                      

                  	
                     

                  	
                    ---8/8ths
                      RESERVES---

                  	
                     

                  	
                    WORKING

                  	
                     

                  	
                    REVENUE

                  	
                     

                  	
                    PRICE

                  	
                     

                  	
                    PRICE

                  	
                     

                  	
                    TABLE

                  	
                     

                  
	
                    FIELD

                  	
                     

                  	
                    LEASE

                  	
                     

                  	
                    CATEGORY

                  	
                     

                  	
                    OIL,
                      MB

                  	
                     

                  	
                    GAS,
                      Mmcf

                  	
                     

                  	
                    INTEREST

                  	
                     

                  	
                    INTEREST

                  	
                     

                  	
                    $/BBL

                  	
                     

                  	
                    $/Mcf

                  	
                     

                  	
                    NO.

                  	
                     

                  
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    PROVED
                      RESERVES

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 02	 	 	
                    1PDP

                  	 	 	
                    0.000

                  	 	 	
                    345

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    15

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 10	 	 	
                    1PDP

                  	 	 	
                    0.000

                  	 	 	
                    231

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    16

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 10 - DEP	 	 	
                    1PDP

                  	 	 	
                    0.000

                  	 	 	
                    0

                  	 	 	
                    0.00

                  	
                    %

                  	 	
                    0.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    0.00

                  	 	 	
                    17

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 11	 	 	
                    1PDP

                  	 	 	
                    0.000

                  	 	 	
                    60

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    18

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 14	 	 	
                    1PDP

                  	 	 	
                    0.000

                  	 	 	
                    73

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    19

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 17	 	 	
                    1PDP

                  	 	 	
                    0.000

                  	 	 	
                    55

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    20

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 19	 	 	
                    1PDP

                  	 	 	
                    0.000

                  	 	 	
                    0

                  	 	 	
                    0.00

                  	
                    %

                  	 	
                    0.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    21

                  	 
	
                    PROVED
                      PRODUCING TOTAL

                  	 	 	
                     

                  	 	 	
                    0.000

                  	 	 	
                    764

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
                     

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 21	 	 	
                    3PUD

                  	 	 	
                    0.000

                  	 	 	
                    549

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    22

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL NO. 22	 	 	
                    3PUD

                  	 	 	
                    0.000

                  	 	 	
                    734

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    23

                  	 
	
                    PROVED
                      BEHIND PIPE TOTAL

                  	 	 	
                     

                  	 	 	
                    0.000

                  	 	 	
                    1,283

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
                     

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    GRAND
                      TOTAL PROVED RESERVES

                  	 	 	
                     

                  	 	 	
                    0.000

                  	 	 	
                    2,047

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
                     

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    POSSIBLE
                      RESERVES

                  	 	 	
                     

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
                     

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL LOC. 1 PSUD1	 	 	
                    9PSUD

                  	 	 	
                    0.000

                  	 	 	
                    3,545

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    9

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL LOC. 2 PSUD1	 	 	
                    9PSUD

                  	 	 	
                    0.000

                  	 	 	
                    3,411

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    10

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL LOC. 3 PSUD1	 	 	
                    9PSUD

                  	 	 	
                    0.000

                  	 	 	
                    1,772

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    11

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL LOC. 4 PSUD1	 	 	
                    9PSUD

                  	 	 	
                    0.000

                  	 	 	
                    1,212

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    12

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL LOC. 5 PSUD1	 	 	
                    9PSUD

                  	 	 	
                    0.000

                  	 	 	
                    2,377

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    13

                  	 
	
                    SARGENT
                      SOUTH

                  	 	HAMILL
                    & HAMILL LOC. 6 PSUD1	 	 	
                    9PSUD

                  	 	 	
                    0.000

                  	 	 	
                    586

                  	 	 	
                    20.00

                  	
                    %

                  	 	
                    16.00

                  	
                    %

                  	 	
                    0.00

                  	 	 	
                    7.75

                  	 	 	
                    14

                  	 
	
                    POSSIBLE
                      UNDEVELOPED TOTAL

                  	 	 	
                     

                  	 	 	
                    0.000

                  	 	 	
                    12,903

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	
                     

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    GRAND
                      TOTAL POSSIBLE RESERVES

                  	 	 	
                     

                  	 	 	
                    0.000

                  	 	 	
                    12,903

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              R.A
                LENSER & ASSOCIATES, INC.

              HOUSTON,
                TEXAS

            	
              TABLE
                B

            

    

     

    AQUATIC
      CELLULOSE INTERNATIONAL CORP.

    SUMMARY
      OF NET RESERVES AND INCOME DATA

      AS
        OF JANUARY 1, 2006

       

      
        
          
            	
                     

                  	
                     

                  	
                    
                      RESERVE
CATEGORY

                    

                  	
                    -----------NET-----------

                  	
                    
                      TOTAL
REV,
                      M$

                  	
                    --TAXES,
                      M$--

                  	
                    --EXPENSES,
                      M$--

                  	
                    
                      INCOME
M$

                  	
                    
                      INCOME
@
                        10%, M$

                    

                  	
                    
                      TABLE
                        
NUMBER

                    

                  
	
                    FIELD

                  	
                    LEASE

                  	
                    OIL,
                      MB

                  	
                    GAS,
                      Mmcf

                  	
                    SEV

                  	
                    AD
                      VAL

                  	
                    OPC

                  	
                    COSTS

                  
	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                    PROVED
                      RESERVES

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      PRODUCING

                  	
                    HAMILL
&
HAMILL
                      NO. 02

                  	
                    0.000

                  	
                    55

                  	
                    427

                  	
                    0

                  	
                    16

                  	
                    11

                  	
                    0

                  	
                    400

                  	
                    379

                  	
                    15

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      PRODUCING

                  	
                    HAMILL
&
HAMILL
                      NO. 10

                  	
                    0.000

                  	
                    37

                  	
                    287

                  	
                    0

                  	
                    11

                  	
                    23

                  	
                    0

                  	
                    253

                  	
                    220

                  	
                    16

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      PRODUCING

                  	
                    HAMILL
&
HAMILL
                      NO. 14

                  	
                    0.000

                  	
                    12

                  	
                    91

                  	
                    0

                  	
                    3

                  	
                    10

                  	
                    0

                  	
                    77

                  	
                    72

                  	
                    19

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      PRODUCING

                  	
                    HAMILL
&
HAMILL
                      NO. 17

                  	
                    0.000

                  	
                    9

                  	
                    68

                  	
                    0

                  	
                    3

                  	
                    11

                  	
                    0

                  	
                    55

                  	
                    52

                  	
                    20

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      PRODUCING

                  	
                    HAMILL
&
HAMILL
                      NO. 11

                  	
                    0.000

                  	
                    10

                  	
                    75

                  	
                    0

                  	
                    3

                  	
                    8

                  	
                    10

                  	
                    54

                  	
                    50

                  	
                    18

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      PRODUCING

                  	
                    HAMILL
&
HAMILL
                      NO. 19

                  	
                    0.000

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    21

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      PRODUCING

                  	
                    HAMILL
&
HAMILL
                      NO. 10 - DEP

                  	
                    0.000

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    0

                  	
                    17

                  
	
                    PROVED
                      PRODUCING TOTAL

                  	
                     

                  	
                    0.000

                  	
                    122

                  	
                    948

                  	
                    0

                  	
                    36

                  	
                    64

                  	
                    10

                  	
                    838

                  	
                    772

                  	
                     

                  
	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      UNDEVELOPED

                  	
                    HAMILL
&
HAMILL
                      NO. 22

                  	
                    0.000

                  	
                    117

                  	
                    911

                  	
                    68

                  	
                    32

                  	
                    21

                  	
                    157

                  	
                    632

                  	
                    444

                  	
                    23

                  
	
                    SARGENT
                      SOUTH

                  	
                    PROVED
                      UNDEVELOPED

                  	
                    HAMILL
&
HAMILL
                      NO. 21

                  	
                    0.000

                  	
                    88

                  	
                    681

                  	
                    51

                  	
                    24

                  	
                    19

                  	
                    157

                  	
                    430

                  	
                    307

                  	
                    22

                  
	
                    PROVED
                      UNDEVELOPED TOTAL

                  	
                     

                  	
                    0.000

                  	
                    205

                  	
                    1,592

                  	
                    119

                  	
                    56

                  	
                    40

                  	
                    314

                  	
                    1,063

                  	
                    751

                  	
                     

                  
	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                    GRAND
                      TOTAL PROVED RESERVES

                  	
                     

                  	
                    0.000

                  	
                    328

                  	
                    2,540

                  	
                    119

                  	
                    92

                  	
                    104

                  	
                    324

                  	
                    1,901

                  	
                    1,523

                  	
                     

                  
	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                    POSSIBLE
                      RESERVES

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                    SARGENT
                      SOUTH

                  	
                    POSSIBLE
                      UNDEVELOPED

                  	
                    HAMILL
&
HAMILL
                      LOC. 1 PSUD1

                  	
                    0.000

                  	
                    567

                  	
                    4,398

                  	
                    330

                  	
                    154

                  	
                    102

                  	
                    171

                  	
                    3,641

                  	
                    1,365

                  	
                    9

                  
	
                    SARGENT
                      SOUTH

                  	
                    POSSIBLE
                      UNDEVELOPED

                  	
                    HAMILL
&
HAMILL
                      LOC. 2 PSUD1

                  	
                    0.000

                  	
                    546

                  	
                    4,232

                  	
                    317

                  	
                    148

                  	
                    98

                  	
                    171

                  	
                    3,497

                  	
                    1,313

                  	
                    10

                  
	
                    SARGENT
                      SOUTH

                  	
                    POSSIBLE
                      UNDEVELOPED

                  	
                    HAMILL
&
HAMILL
                      LOC. 5 PSUD1

                  	
                    0.000

                  	
                    380

                  	
                    2,949

                  	
                    221

                  	
                    103

                  	
                    68

                  	
                    164

                  	
                    2,392

                  	
                    1,033

                  	
                    13

                  
	
                    SARGENT
                      SOUTH

                  	
                    POSSIBLE
                      UNDEVELOPED

                  	
                    HAMILL
&
HAMILL
                      LOC. 3 PSUD1

                  	
                    0.000

                  	
                    284

                  	
                    2,198

                  	
                    165

                  	
                    77

                  	
                    51

                  	
                    157

                  	
                    1,749

                  	
                    921

                  	
                    11

                  
	
                    SARGENT
                      SOUTH

                  	
                    POSSIBLE
                      UNDEVELOPED

                  	
                    HAMILL
&
HAMILL
                      LOC. 4 PSUD1

                  	
                    0.000

                  	
                    194

                  	
                    1,504

                  	
                    113

                  	
                    53

                  	
                    35

                  	
                    157

                  	
                    1,146

                  	
                    668

                  	
                    12

                  
	
                    SARGENT
                      SOUTH

                  	
                    POSSIBLE
                      UNDEVELOPED

                  	
                    HAMILL
&
HAMILL
                      LOC. 6 PSUD1

                  	
                    0.000

                  	
                    94

                  	
                    727

                  	
                    55

                  	
                    25

                  	
                    17

                  	
                    150

                  	
                    480

                  	
                    312

                  	
                    14

                  
	
                    POSSIBLE
                      UNDEVELOPED RESERVES

                  	
                     

                  	
                    0.000

                  	
                    2,064

                  	
                    16,008

                  	
                    1,201

                  	
                    560

                  	
                    371

                  	
                    970

                  	
                    12,906

                  	
                    5,612

                  	
                     

                  
	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  	
                     

                  
	
                    GRAND
                      TOTAL POSSIBLE RESERVES 

                  	
                     

                  	
                    0.000

                  	
                    2,064

                  	
                    16,008

                  	
                    1,201

                  	
                    560

                  	
                    371

                  	
                    970

                  	
                    12,906

                  	
                    5,612

                  	
                     

                  

          

        

      

    

    
      
      

    

     

    
       

      
        
          
          

        

        
          
          

          
            

            	
                    R.A
                      LENSER & ASSOCIATES, INC.

                    HOUSTON,
                      TEXAS

                  	
                    TABLE
                      C

                  

          

        

        
          
          

        

      

       

      AQUATIC
        CELLULOSE INTERNATIONAL CORP.

      SUMMARY
        OF NET RESERVES AND INCOME DATA

      RANKED
        BY FUTURE NET INCOME DISCOUNTED AT 10%

      AS
        OF JANUARY 1, 2006

       

    

    
      	 	 	 	 	
              RESERVE

            	
               

            	
              -----------NET-----------

            	
               

            	
              TOTAL

            	
               

            	
              --TAXES,
                M$--

            	
               

            	
              --EXPENSES,
                M$--

            	
               

            	
              INCOME

            	
               

            	
              INCOME

            	
               

            	
              TABLE
                

            	 
	
              FIELD

            	 	
              LEASE

            	
               

            	
              CATEGORY

            	
               

            	
              OIL,
                MB

            	
               

            	
              GAS,
                Mmcf

            	
               

            	
              REV,
                M$

            	
               

            	
              SEV

            	
               

            	
              AD
                VAL

            	
               

            	
              OPC

            	
               

            	
              COSTS

            	
               

            	
              M$

            	
               

            	
              @
                10%, M$

            	
               

            	
              NUMBER

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              PROVED
                RESERVES

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 22	 	PROVED
              UNDEVELOPED	 	 	
              0.000

            	 	 	
              117

            	 	 	
              911

            	 	 	
              68

            	 	 	
              32

            	 	 	
              21

            	 	 	
              157

            	 	 	
              632

            	 	 	
              444

            	 	 	
              23

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 02	 	PROVED
              PRODUCING	 	 	
              0.000

            	 	 	
              55

            	 	 	
              427

            	 	 	
              0

            	 	 	
              16

            	 	 	
              11

            	 	 	
              0

            	 	 	
              400

            	 	 	
              379

            	 	 	
              15

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 21	 	PROVED
              UNDEVELOPED	 	 	
              0.000

            	 	 	
              88

            	 	 	
              681

            	 	 	
              51

            	 	 	
              24

            	 	 	
              19

            	 	 	
              157

            	 	 	
              430

            	 	 	
              307

            	 	 	
              22

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 10	 	PROVED
              PRODUCING	 	 	
              0.000

            	 	 	
              37

            	 	 	
              287

            	 	 	
              0

            	 	 	
              11

            	 	 	
              23

            	 	 	
              0

            	 	 	
              253

            	 	 	
              220

            	 	 	
              16

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 14	 	PROVED
              PRODUCING	 	 	
              0.000

            	 	 	
              12

            	 	 	
              91

            	 	 	
              0

            	 	 	
              3

            	 	 	
              10

            	 	 	
              0

            	 	 	
              77

            	 	 	
              72

            	 	 	
              19

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 17	 	PROVED
              PRODUCING	 	 	
              0.000

            	 	 	
              9

            	 	 	
              68

            	 	 	
              0

            	 	 	
              3

            	 	 	
              11

            	 	 	
              0

            	 	 	
              55

            	 	 	
              52

            	 	 	
              20

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 11	 	PROVED
              PRODUCING	 	 	
              0.000

            	 	 	
              10

            	 	 	
              75

            	 	 	
              0

            	 	 	
              3

            	 	 	
              8

            	 	 	
              10

            	 	 	
              54

            	 	 	
              50

            	 	 	
              18

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 19	 	PROVED
              PRODUCING	 	 	
              0.000

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              21

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL NO. 10 - DEP	 	PROVED
              PRODUCING	 	 	
              0.000

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              0

            	 	 	
              17

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              GRAND
                TOTAL PROVED RESERVES

            	 	 	 	 	
              0.000

            	 	 	
              328

            	 	 	
              2,540

            	 	 	
              119

            	 	 	
              92

            	 	 	
              104

            	 	 	
              324

            	 	 	
              1,901

            	 	 	
              1,523

            	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              POSSIBLE
                RESERVES

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL LOC. 1 PSUD1	 	POSSIBLE
              UNDEVELOPED	 	 	
              0.000

            	 	 	
              567

            	 	 	
              4,398

            	 	 	
              330

            	 	 	
              154

            	 	 	
              102

            	 	 	
              171

            	 	 	
              3,641

            	 	 	
              1,365

            	 	 	
              9

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL LOC. 2 PSUD1	 	POSSIBLE
              UNDEVELOPED	 	 	
              0.000

            	 	 	
              546

            	 	 	
              4,232

            	 	 	
              317

            	 	 	
              148

            	 	 	
              98

            	 	 	
              171

            	 	 	
              3,497

            	 	 	
              1,313

            	 	 	
              10

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL LOC. 5 PSUD1	 	POSSIBLE
              UNDEVELOPED	 	 	
              0.000

            	 	 	
              380

            	 	 	
              2,949

            	 	 	
              221

            	 	 	
              103

            	 	 	
              68

            	 	 	
              164

            	 	 	
              2,392

            	 	 	
              1,033

            	 	 	
              13

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL LOC. 3 PSUD1	 	POSSIBLE
              UNDEVELOPED	 	 	
              0.000

            	 	 	
              284

            	 	 	
              2,198

            	 	 	
              165

            	 	 	
              77

            	 	 	
              51

            	 	 	
              157

            	 	 	
              1,749

            	 	 	
              921

            	 	 	
              11

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL LOC. 4 PSUD1	 	POSSIBLE
              UNDEVELOPED	 	 	
              0.000

            	 	 	
              194

            	 	 	
              1,504

            	 	 	
              113

            	 	 	
              53

            	 	 	
              35

            	 	 	
              157

            	 	 	
              1,146

            	 	 	
              668

            	 	 	
              12

            	 
	
              SARGENT
                SOUTH

            	 	HAMILL
              & HAMILL LOC. 6 PSUD1	 	POSSIBLE
              UNDEVELOPED	 	 	
              0.000

            	 	 	
              94

            	 	 	
              727

            	 	 	
              55

            	 	 	
              25

            	 	 	
              17

            	 	 	
              150

            	 	 	
              480

            	 	 	
              312

            	 	 	
              14

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              GRAND
                TOTAL POSSIBLE RESERVES

            	 	 	 	 	
              0.000

            	 	 	
              2,064

            	 	 	
              16,008

            	 	 	
              1,201

            	 	 	
              560

            	 	 	
              371

            	 	 	
              970

            	 	 	
              12,906

            	 	 	
              5,612

            	 	 	 	 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   GRAND SUMMARY                                                                                      TABLE 1
   TOTAL PROVED RESERVES
                                                                                                    RESERVE TYPE
                                                                                                    TOTAL PROVED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000      1523.266
 FINAL                                                                                                   15.0000      1384.722
                                                                                                         20.0000      1269.726
                                                                                                         25.0000      1173.243
                                                                                                         30.0000      1091.495
                                                                                                         35.0000      1021.603

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      5.          0.000          0.000           506.          0.000          0.000            81.       0.00       7.75
 12-07      6.          0.000          0.000           488.          0.000          0.000            78.       0.00       7.75
 12-08      3.          0.000          0.000           344.          0.000          0.000            55.       0.00       7.75
 12-09      3.          0.000          0.000           309.          0.000          0.000            50.       0.00       7.75
 12-10      3.          0.000          0.000           321.          0.000          0.000            51.       0.00       7.75
 12-11      1.          0.000          0.000            78.          0.000          0.000            12.       0.00       7.75
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      4.          0.000          0.000          2047.          0.000          0.000           328.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      4.          0.000          0.000          2047.          0.000          0.000           328.       0.00       7.75

 Cumulative             0.000          0.000           312.
 Ultimate               0.000          0.000          2359.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.        627260.          0.     627260.               0.         23726.             603534.
 12-07             0.             0.        605683.          0.     605683.           29103.         21809.             554771.
 12-08             0.             0.        427207.          0.     427207.           27809.         15107.             384291.
 12-09             0.             0.        383885.          0.     383885.           26589.         13515.             343781.
 12-10             0.             0.        398849.          0.     398849.           28624.         14004.             356221.
 12-11             0.             0.         96748.          0.      96748.            7256.          3385.              86107.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.       2539633.          0.    2539633.          119381.         91546.            2328706.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.       2539633.          0.    2539633.          119381.         91546.            2328706.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06          24677.         10000.             0.             0.         34677.        568857.        568857.        546719.
 12-07          30115.        307000.             0.             0.        337115.        217656.        786513.        181853.
 12-08          16405.          7000.             0.             0.         23405.        360886.       1147400.        284591.
 12-09          14374.             0.             0.             0.         14374.        329408.       1476808.        236456.
 12-10          13976.             0.             0.             0.         13976.        342245.       1819053.        224510.
 12-11           4400.             0.             0.             0.          4400.         81707.       1900760.         49137.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T         103946.        324000.             0.             0.        427946.       1900760.       1900760.       1523266.
 After              0.             0.             0.             0.             0.             0.       1900760.             0.
 Total         103946.        324000.             0.             0.        427946.       1900760.       1900760.       1523266.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   GRAND SUMMARY                                                                                      TABLE 2
   PROVED PRODUCING RESERVES
                                                                                                    RESERVE TYPE
                                                                                                    PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000       772.238
 FINAL                                                                                                   15.0000       744.908
                                                                                                         20.0000       720.479
                                                                                                         25.0000       698.495
                                                                                                         30.0000       678.589
                                                                                                         35.0000       660.466

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      5.          0.000          0.000           506.          0.000          0.000            81.       0.00       7.75
 12-07      5.          0.000          0.000           175.          0.000          0.000            28.       0.00       7.75
 12-08      1.          0.000          0.000            45.          0.000          0.000             7.       0.00       7.75
 12-09      1.          0.000          0.000            24.          0.000          0.000             4.       0.00       7.75
 12-10      1.          0.000          0.000            14.          0.000          0.000             2.       0.00       7.75
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      3.          0.000          0.000           764.          0.000          0.000           122.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      3.          0.000          0.000           764.          0.000          0.000           122.       0.00       7.75

 Cumulative             0.000          0.000           312.
 Ultimate               0.000          0.000          1076.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.        627260.          0.     627260.               0.         23726.             603534.
 12-07             0.             0.        217649.          0.     217649.               0.          8233.             209416.
 12-08             0.             0.         56426.          0.      56426.               0.          2134.              54292.
 12-09             0.             0.         29365.          0.      29365.               0.          1111.              28255.
 12-10             0.             0.         17191.          0.      17191.               0.           650.              16541.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.        947892.          0.     947892.               0.         35854.             912038.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        947892.          0.     947892.               0.         35854.             912038.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06          24677.         10000.             0.             0.         34677.        568857.        568857.        546719.
 12-07          23315.             0.             0.             0.         23315.        186101.        754958.        162850.
 12-08           6805.             0.             0.             0.          6805.         47487.        802445.         37778.
 12-09           4774.             0.             0.             0.          4774.         23481.        825926.         16901.
 12-10           4376.             0.             0.             0.          4376.         12165.        838092.          7990.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          63946.         10000.             0.             0.         73946.        838092.        838092.        772238.
 After              0.             0.             0.             0.             0.             0.        838092.             0.
 Total          63946.         10000.             0.             0.         73946.        838092.        838092.        772238.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   GRAND SUMMARY                                                                                      TABLE 3
   PROVED UNDEVELOPED RESERVES
                                                                                                    RESERVE TYPE
                                                                                                    PROVED UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000       751.028
 FINAL                                                                                                   15.0000       639.814
                                                                                                         20.0000       549.246
                                                                                                         25.0000       474.748
                                                                                                         30.0000       412.905
                                                                                                         35.0000       361.137

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      1.          0.000          0.000           313.          0.000          0.000            50.       0.00       7.75
 12-08      2.          0.000          0.000           299.          0.000          0.000            48.       0.00       7.75
 12-09      2.          0.000          0.000           286.          0.000          0.000            46.       0.00       7.75
 12-10      2.          0.000          0.000           308.          0.000          0.000            49.       0.00       7.75
 12-11      1.          0.000          0.000            78.          0.000          0.000            12.       0.00       7.75
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000          1283.          0.000          0.000           205.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000          1283.          0.000          0.000           205.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000          1283.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.        388034.          0.     388034.           29103.         13577.             345355.
 12-08             0.             0.        370781.          0.     370781.           27809.         12973.             329999.
 12-09             0.             0.        354520.          0.     354520.           26589.         12404.             315527.
 12-10             0.             0.        381658.          0.     381658.           28624.         13353.             339680.
 12-11             0.             0.         96748.          0.      96748.            7256.          3385.              86107.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.       1591741.          0.    1591741.          119381.         55692.            1416668.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.       1591741.          0.    1591741.          119381.         55692.            1416668.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07           6800.        307000.             0.             0.        313800.         31555.         31555.         19003.
 12-08           9600.          7000.             0.             0.         16600.        313399.        344954.        246813.
 12-09           9600.             0.             0.             0.          9600.        305927.        650881.        219555.
 12-10           9600.             0.             0.             0.          9600.        330080.        980961.        216520.
 12-11           4400.             0.             0.             0.          4400.         81707.       1062668.         49137.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          40000.        314000.             0.             0.        354000.       1062668.       1062668.        751028.
 After              0.             0.             0.             0.             0.             0.       1062668.             0.
 Total          40000.        314000.             0.             0.        354000.       1062668.       1062668.        751028.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   GRAND SUMMARY                                                                                      TABLE 4
   POSSIBLE UNDEVELOPED RESERVES
                                                                                                    RESERVE TYPE
                                                                                                    POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000      5611.747
 FINAL                                                                                                   15.0000      4065.883
                                                                                                         20.0000      3075.665
                                                                                                         25.0000      2404.777
                                                                                                         30.0000      1929.294
                                                                                                         35.0000      1579.856

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      0.          0.000          0.000           143.          0.000          0.000            23.       0.00       7.75
 12-08      4.          0.000          0.000          1156.          0.000          0.000           185.       0.00       7.75
 12-09      6.          0.000          0.000          1398.          0.000          0.000           224.       0.00       7.75
 12-10      6.          0.000          0.000           945.          0.000          0.000           151.       0.00       7.75
 12-11      6.          0.000          0.000           641.          0.000          0.000           103.       0.00       7.75
 12-12      5.          0.000          0.000           456.          0.000          0.000            73.       0.00       7.75
 12-13      5.          0.000          0.000          1306.          0.000          0.000           209.       0.00       7.75
 12-14      5.          0.000          0.000          1051.          0.000          0.000           168.       0.00       7.75
 12-15      5.          0.000          0.000           694.          0.000          0.000           111.       0.00       7.75
 12-16      4.          0.000          0.000           456.          0.000          0.000            73.       0.00       7.75
 12-17      4.          0.000          0.000           419.          0.000          0.000            67.       0.00       7.75
 12-18      4.          0.000          0.000           657.          0.000          0.000           105.       0.00       7.75
 12-19      3.          0.000          0.000           720.          0.000          0.000           115.       0.00       7.75
 12-20      3.          0.000          0.000           502.          0.000          0.000            80.       0.00       7.75

 Sub-T      4.          0.000          0.000         10546.          0.000          0.000          1687.       0.00       7.75
 After      2.          0.000          0.000          2357.          0.000          0.000           377.       0.00       7.75
 Total      3.          0.000          0.000         12903.          0.000          0.000          2064.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000         12903.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.        177415.          0.     177415.           13306.          6207.             157902.
 12-08             0.             0.       1434799.          0.    1434799.          107610.         50201.            1276988.
 12-09             0.             0.       1734347.          0.    1734347.          130076.         60682.            1543589.
 12-10             0.             0.       1172870.          0.    1172870.           87965.         41037.            1043869.
 12-11             0.             0.        795829.          0.     795829.           59687.         27845.             708297.
 12-12             0.             0.        565409.          0.     565409.           42406.         19783.             503221.
 12-13             0.             0.       1619663.          0.    1619663.          121475.         56669.            1441519.
 12-14             0.             0.       1304490.          0.    1304490.           97837.         45642.            1161012.
 12-15             0.             0.        861400.          0.     861400.           64605.         30139.             766656.
 12-16             0.             0.        566093.          0.     566093.           42457.         19807.             503829.
 12-17             0.             0.        520302.          0.     520302.           39023.         18204.             463075.
 12-18             0.             0.        815236.          0.     815236.           61143.         28524.             725569.
 12-19             0.             0.        893604.          0.     893604.           67020.         31266.             795318.
 12-20             0.             0.        622487.          0.     622487.           46687.         21780.             554021.

 Sub-T             0.             0.      13083945.          0.   13083945.          981296.        457783.           11644866.
 After             0.             0.       2924024.          0.    2924024.          219302.        102306.            2602416.
 Total             0.             0.      16007969.          0.   16007969.         1200597.        560089.           14247282.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07           2000.        300000.             0.             0.        302000.       -144098.       -144098.       -122304.
 12-08          18400.        600000.             0.             0.        618400.        658589.        514490.        513874.
 12-09          28800.             0.             0.             0.         28800.       1514789.       2029280.       1088948.
 12-10          28800.             0.             0.             0.         28800.       1015069.       3044348.        663374.
 12-11          28800.         14000.             0.             0.         42800.        665497.       3709846.        395740.
 12-12          26000.         21000.             0.             0.         47000.        456221.       4166066.        245215.
 12-13          24000.             0.             0.             0.         24000.       1417519.       5583586.        692086.
 12-14          24000.             0.             0.             0.         24000.       1137012.       6720597.        507542.
 12-15          22400.             0.             0.             0.         22400.        744256.       7464854.        302247.
 12-16          19200.          7000.             0.             0.         26200.        477629.       7942482.        176184.
 12-17          19200.         14000.             0.             0.         33200.        429875.       8372358.        142989.
 12-18          18000.             0.             0.             0.         18000.        707569.       9079927.        213684.
 12-19          14400.             0.             0.             0.         14400.        780918.       9860845.        216384.
 12-20          14400.             0.             0.             0.         14400.        539621.      10400466.        135933.

 Sub-T         288400.        956000.             0.             0.       1244400.      10400466.      10400466.       5171896.
 After          82400.         14000.             0.             0.         96400.       2506016.      12906481.        439849.
 Total         370800.        970000.             0.             0.       1340800.      12906482.      12906481.       5611746.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   GRAND SUMMARY                                                                                      TABLE 5
   SARGENT SOUTH FIELD
   TOTAL PROVED RESERVES                                                                            RESERVE TYPE
                                                                                                    TOTAL PROVED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000      1523.266
 FINAL                                                                                                   15.0000      1384.722
                                                                                                         20.0000      1269.726
                                                                                                         25.0000      1173.243
                                                                                                         30.0000      1091.495
                                                                                                         35.0000      1021.603

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      5.          0.000          0.000           506.          0.000          0.000            81.       0.00       7.75
 12-07      6.          0.000          0.000           488.          0.000          0.000            78.       0.00       7.75
 12-08      3.          0.000          0.000           344.          0.000          0.000            55.       0.00       7.75
 12-09      3.          0.000          0.000           309.          0.000          0.000            50.       0.00       7.75
 12-10      3.          0.000          0.000           321.          0.000          0.000            51.       0.00       7.75
 12-11      1.          0.000          0.000            78.          0.000          0.000            12.       0.00       7.75
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      4.          0.000          0.000          2047.          0.000          0.000           328.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      4.          0.000          0.000          2047.          0.000          0.000           328.       0.00       7.75

 Cumulative             0.000          0.000           312.
 Ultimate               0.000          0.000          2359.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.        627260.          0.     627260.               0.         23726.             603534.
 12-07             0.             0.        605683.          0.     605683.           29103.         21809.             554771.
 12-08             0.             0.        427207.          0.     427207.           27809.         15107.             384291.
 12-09             0.             0.        383885.          0.     383885.           26589.         13515.             343781.
 12-10             0.             0.        398849.          0.     398849.           28624.         14004.             356221.
 12-11             0.             0.         96748.          0.      96748.            7256.          3385.              86107.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.       2539633.          0.    2539633.          119381.         91546.            2328706.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.       2539633.          0.    2539633.          119381.         91546.            2328706.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06          24677.         10000.             0.             0.         34677.        568857.        568857.        546719.
 12-07          30115.        307000.             0.             0.        337115.        217656.        786513.        181853.
 12-08          16405.          7000.             0.             0.         23405.        360886.       1147400.        284591.
 12-09          14374.             0.             0.             0.         14374.        329408.       1476808.        236456.
 12-10          13976.             0.             0.             0.         13976.        342245.       1819053.        224510.
 12-11           4400.             0.             0.             0.          4400.         81707.       1900760.         49137.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T         103946.        324000.             0.             0.        427946.       1900760.       1900760.       1523266.
 After              0.             0.             0.             0.             0.             0.       1900760.             0.
 Total         103946.        324000.             0.             0.        427946.       1900760.       1900760.       1523266.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   GRAND SUMMARY                                                                                      TABLE 6
   SARGENT SOUTH FIELD
   PROVED PRODUCING RESERVES                                                                        RESERVE TYPE
                                                                                                    PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000       772.238
 FINAL                                                                                                   15.0000       744.908
                                                                                                         20.0000       720.479
                                                                                                         25.0000       698.495
                                                                                                         30.0000       678.589
                                                                                                         35.0000       660.466

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      5.          0.000          0.000           506.          0.000          0.000            81.       0.00       7.75
 12-07      5.          0.000          0.000           175.          0.000          0.000            28.       0.00       7.75
 12-08      1.          0.000          0.000            45.          0.000          0.000             7.       0.00       7.75
 12-09      1.          0.000          0.000            24.          0.000          0.000             4.       0.00       7.75
 12-10      1.          0.000          0.000            14.          0.000          0.000             2.       0.00       7.75
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      3.          0.000          0.000           764.          0.000          0.000           122.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      3.          0.000          0.000           764.          0.000          0.000           122.       0.00       7.75

 Cumulative             0.000          0.000           312.
 Ultimate               0.000          0.000          1076.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.        627260.          0.     627260.               0.         23726.             603534.
 12-07             0.             0.        217649.          0.     217649.               0.          8233.             209416.
 12-08             0.             0.         56426.          0.      56426.               0.          2134.              54292.
 12-09             0.             0.         29365.          0.      29365.               0.          1111.              28255.
 12-10             0.             0.         17191.          0.      17191.               0.           650.              16541.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.        947892.          0.     947892.               0.         35854.             912038.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        947892.          0.     947892.               0.         35854.             912038.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06          24677.         10000.             0.             0.         34677.        568857.        568857.        546719.
 12-07          23315.             0.             0.             0.         23315.        186101.        754958.        162850.
 12-08           6805.             0.             0.             0.          6805.         47487.        802445.         37778.
 12-09           4774.             0.             0.             0.          4774.         23481.        825926.         16901.
 12-10           4376.             0.             0.             0.          4376.         12165.        838092.          7990.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          63946.         10000.             0.             0.         73946.        838092.        838092.        772238.
 After              0.             0.             0.             0.             0.             0.        838092.             0.
 Total          63946.         10000.             0.             0.         73946.        838092.        838092.        772238.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006

   GRAND SUMMARY                                                                                      TABLE 7
   SARGENT SOUTH FIELD
   PROVED UNDEVELOPED RESERVES                                                                      RESERVE TYPE
                                                                                                    PROVED UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000       751.028
 FINAL                                                                                                   15.0000       639.814
                                                                                                         20.0000       549.246
                                                                                                         25.0000       474.748
                                                                                                         30.0000       412.905
                                                                                                         35.0000       361.137

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      1.          0.000          0.000           313.          0.000          0.000            50.       0.00       7.75
 12-08      2.          0.000          0.000           299.          0.000          0.000            48.       0.00       7.75
 12-09      2.          0.000          0.000           286.          0.000          0.000            46.       0.00       7.75
 12-10      2.          0.000          0.000           308.          0.000          0.000            49.       0.00       7.75
 12-11      1.          0.000          0.000            78.          0.000          0.000            12.       0.00       7.75
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000          1283.          0.000          0.000           205.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000          1283.          0.000          0.000           205.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000          1283.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.        388034.          0.     388034.           29103.         13577.             345355.
 12-08             0.             0.        370781.          0.     370781.           27809.         12973.             329999.
 12-09             0.             0.        354520.          0.     354520.           26589.         12404.             315527.
 12-10             0.             0.        381658.          0.     381658.           28624.         13353.             339680.
 12-11             0.             0.         96748.          0.      96748.            7256.          3385.              86107.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.       1591741.          0.    1591741.          119381.         55692.            1416668.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.       1591741.          0.    1591741.          119381.         55692.            1416668.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07           6800.        307000.             0.             0.        313800.         31555.         31555.         19003.
 12-08           9600.          7000.             0.             0.         16600.        313399.        344954.        246813.
 12-09           9600.             0.             0.             0.          9600.        305927.        650881.        219555.
 12-10           9600.             0.             0.             0.          9600.        330080.        980961.        216520.
 12-11           4400.             0.             0.             0.          4400.         81707.       1062668.         49137.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          40000.        314000.             0.             0.        354000.       1062668.       1062668.        751028.
 After              0.             0.             0.             0.             0.             0.       1062668.             0.
 Total          40000.        314000.             0.             0.        354000.       1062668.       1062668.        751028.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   GRAND SUMMARY                                                                                      TABLE 8
   SARGENT SOUTH FIELD
   POSSIBLE UNDEVELOPED RESERVES                                                                    RESERVE TYPE
                                                                                                    POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL                                                                                                 10.0000      5611.747
 FINAL                                                                                                   15.0000      4065.883
                                                                                                         20.0000      3075.665
                                                                                                         25.0000      2404.777
                                                                                                         30.0000      1929.294
                                                                                                         35.0000      1579.856

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      0.          0.000          0.000           143.          0.000          0.000            23.       0.00       7.75
 12-08      4.          0.000          0.000          1156.          0.000          0.000           185.       0.00       7.75
 12-09      6.          0.000          0.000          1398.          0.000          0.000           224.       0.00       7.75
 12-10      6.          0.000          0.000           945.          0.000          0.000           151.       0.00       7.75
 12-11      6.          0.000          0.000           641.          0.000          0.000           103.       0.00       7.75
 12-12      5.          0.000          0.000           456.          0.000          0.000            73.       0.00       7.75
 12-13      5.          0.000          0.000          1306.          0.000          0.000           209.       0.00       7.75
 12-14      5.          0.000          0.000          1051.          0.000          0.000           168.       0.00       7.75
 12-15      5.          0.000          0.000           694.          0.000          0.000           111.       0.00       7.75
 12-16      4.          0.000          0.000           456.          0.000          0.000            73.       0.00       7.75
 12-17      4.          0.000          0.000           419.          0.000          0.000            67.       0.00       7.75
 12-18      4.          0.000          0.000           657.          0.000          0.000           105.       0.00       7.75
 12-19      3.          0.000          0.000           720.          0.000          0.000           115.       0.00       7.75
 12-20      3.          0.000          0.000           502.          0.000          0.000            80.       0.00       7.75

 Sub-T      4.          0.000          0.000         10546.          0.000          0.000          1687.       0.00       7.75
 After      2.          0.000          0.000          2357.          0.000          0.000           377.       0.00       7.75
 Total      3.          0.000          0.000         12903.          0.000          0.000          2064.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000         12903.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.        177415.          0.     177415.           13306.          6207.             157902.
 12-08             0.             0.       1434799.          0.    1434799.          107610.         50201.            1276988.
 12-09             0.             0.       1734347.          0.    1734347.          130076.         60682.            1543589.
 12-10             0.             0.       1172870.          0.    1172870.           87965.         41037.            1043869.
 12-11             0.             0.        795829.          0.     795829.           59687.         27845.             708297.
 12-12             0.             0.        565409.          0.     565409.           42406.         19783.             503221.
 12-13             0.             0.       1619663.          0.    1619663.          121475.         56669.            1441519.
 12-14             0.             0.       1304490.          0.    1304490.           97837.         45642.            1161012.
 12-15             0.             0.        861400.          0.     861400.           64605.         30139.             766656.
 12-16             0.             0.        566093.          0.     566093.           42457.         19807.             503829.
 12-17             0.             0.        520302.          0.     520302.           39023.         18204.             463075.
 12-18             0.             0.        815236.          0.     815236.           61143.         28524.             725569.
 12-19             0.             0.        893604.          0.     893604.           67020.         31266.             795318.
 12-20             0.             0.        622487.          0.     622487.           46687.         21780.             554021.

 Sub-T             0.             0.      13083945.          0.   13083945.          981296.        457783.           11644866.
 After             0.             0.       2924024.          0.    2924024.          219302.        102306.            2602416.
 Total             0.             0.      16007969.          0.   16007969.         1200597.        560089.           14247282.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07           2000.        300000.             0.             0.        302000.       -144098.       -144098.       -122304.
 12-08          18400.        600000.             0.             0.        618400.        658589.        514490.        513874.
 12-09          28800.             0.             0.             0.         28800.       1514789.       2029280.       1088948.
 12-10          28800.             0.             0.             0.         28800.       1015069.       3044348.        663374.
 12-11          28800.         14000.             0.             0.         42800.        665497.       3709846.        395740.
 12-12          26000.         21000.             0.             0.         47000.        456221.       4166066.        245215.
 12-13          24000.             0.             0.             0.         24000.       1417519.       5583586.        692086.
 12-14          24000.             0.             0.             0.         24000.       1137012.       6720597.        507542.
 12-15          22400.             0.             0.             0.         22400.        744256.       7464854.        302247.
 12-16          19200.          7000.             0.             0.         26200.        477629.       7942482.        176184.
 12-17          19200.         14000.             0.             0.         33200.        429875.       8372358.        142989.
 12-18          18000.             0.             0.             0.         18000.        707569.       9079927.        213684.
 12-19          14400.             0.             0.             0.         14400.        780918.       9860845.        216384.
 12-20          14400.             0.             0.             0.         14400.        539621.      10400466.        135933.

 Sub-T         288400.        956000.             0.             0.       1244400.      10400466.      10400466.       5171896.
 After          82400.         14000.             0.             0.         96400.       2506016.      12906481.        439849.
 Total         370800.        970000.             0.             0.       1340800.      12906482.      12906481.       5611746.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 9
   OPER: CENTURY RESOURCES
   RESERVOIR: 6348`,5808`,5526`,364                                                                 RESERVE TYPE
   HAMILL & HAMILL LOC. 1 PSUD1                                                                     POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000      1364.711
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       948.926
                                                                                                         20.0000       700.623
 REMARKS                                                                                                 25.0000       541.277
                                                                                                         30.0000       432.750
                                                                                                         35.0000       355.174

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      1.          0.000          0.000           113.          0.000          0.000            18.       0.00       7.75
 12-08      1.          0.000          0.000           272.          0.000          0.000            44.       0.00       7.75
 12-09      1.          0.000          0.000           193.          0.000          0.000            31.       0.00       7.75
 12-10      1.          0.000          0.000           138.          0.000          0.000            22.       0.00       7.75
 12-11      1.          0.000          0.000            98.          0.000          0.000            16.       0.00       7.75
 12-12      1.          0.000          0.000            94.          0.000          0.000            15.       0.00       7.75
 12-13      1.          0.000          0.000           299.          0.000          0.000            48.       0.00       7.75
 12-14      1.          0.000          0.000           217.          0.000          0.000            35.       0.00       7.75
 12-15      1.          0.000          0.000           157.          0.000          0.000            25.       0.00       7.75
 12-16      1.          0.000          0.000           114.          0.000          0.000            18.       0.00       7.75
 12-17      1.          0.000          0.000            82.          0.000          0.000            13.       0.00       7.75
 12-18      1.          0.000          0.000           198.          0.000          0.000            32.       0.00       7.75
 12-19      1.          0.000          0.000           258.          0.000          0.000            41.       0.00       7.75
 12-20      1.          0.000          0.000           183.          0.000          0.000            29.       0.00       7.75

 Sub-T      1.          0.000          0.000          2416.          0.000          0.000           387.       0.00       7.75
 After      1.          0.000          0.000          1129.          0.000          0.000           181.       0.00       7.75
 Total      1.          0.000          0.000          3545.          0.000          0.000           567.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000          3545.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.        140720.          0.     140720.           10554.          4924.             125243.
 12-08             0.             0.        337703.          0.     337703.           25328.         11816.             300559.
 12-09             0.             0.        240055.          0.     240055.           18004.          8399.             213652.
 12-10             0.             0.        170643.          0.     170643.           12798.          5970.             151874.
 12-11             0.             0.        121301.          0.     121301.            9098.          4244.             107959.
 12-12             0.             0.        116833.          0.     116833.            8763.          4088.             103983.
 12-13             0.             0.        371484.          0.     371484.           27861.         12998.             330625.
 12-14             0.             0.        268870.          0.     268870.           20165.          9407.             239298.
 12-15             0.             0.        194601.          0.     194601.           14595.          6809.             173197.
 12-16             0.             0.        140847.          0.     140847.           10564.          4928.             125356.
 12-17             0.             0.        101942.          0.     101942.            7646.          3567.              90729.
 12-18             0.             0.        245263.          0.     245263.           18395.          8581.             218287.
 12-19             0.             0.        319628.          0.     319628.           23972.         11183.             284473.
 12-20             0.             0.        227646.          0.     227646.           17073.          7965.             202608.

 Sub-T             0.             0.       2997537.          0.    2997537.          224815.        104878.            2667844.
 After             0.             0.       1400531.          0.    1400531.          105040.         49002.            1246489.
 Total             0.             0.       4398068.          0.    4398068.          329855.        153880.            3914333.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07           1600.        150000.             0.             0.        151600.        -26357.        -26357.        -24114.
 12-08           4800.             0.             0.             0.          4800.        295759.        269402.        233779.
 12-09           4800.             0.             0.             0.          4800.        208852.        478254.        150079.
 12-10           4800.             0.             0.             0.          4800.        147074.        625328.         96081.
 12-11           4800.          7000.             0.             0.         11800.         96159.        721488.         57285.
 12-12           4800.             0.             0.             0.          4800.         99183.        820671.         52880.
 12-13           4800.             0.             0.             0.          4800.        325825.       1146496.        159891.
 12-14           4800.             0.             0.             0.          4800.        234498.       1380993.        104614.
 12-15           4800.             0.             0.             0.          4800.        168397.       1549391.         68297.
 12-16           4800.             0.             0.             0.          4800.        120556.       1669947.         44450.
 12-17           4800.          7000.             0.             0.         11800.         78929.       1748876.         26465.
 12-18           4800.             0.             0.             0.          4800.        213487.       1962363.         63858.
 12-19           4800.             0.             0.             0.          4800.        279673.       2242036.         77480.
 12-20           4800.             0.             0.             0.          4800.        197808.       2439844.         49820.

 Sub-T          64000.        164000.             0.             0.        228000.       2439844.       2439844.       1160864.
 After          38000.          7000.             0.             0.         45000.       1201490.       3641333.        203847.
 Total         102000.        171000.             0.             0.        273000.       3641333.       3641333.       1364711.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 10
   OPER: CENTURY RESOURCES
   RESERVOIR: 6348`,5808`,5526`,364                                                                 RESERVE TYPE
   HAMILL & HAMILL LOC. 2 PSUD1                                                                     POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000      1312.787
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       908.072
                                                                                                         20.0000       665.662
 REMARKS                                                                                                 25.0000       510.082
                                                                                                         30.0000       404.324
                                                                                                         35.0000       328.975

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      1.          0.000          0.000            30.          0.000          0.000             5.       0.00       7.75
 12-08      1.          0.000          0.000           296.          0.000          0.000            47.       0.00       7.75
 12-09      1.          0.000          0.000           211.          0.000          0.000            34.       0.00       7.75
 12-10      1.          0.000          0.000           150.          0.000          0.000            24.       0.00       7.75
 12-11      1.          0.000          0.000           106.          0.000          0.000            17.       0.00       7.75
 12-12      1.          0.000          0.000            76.          0.000          0.000            12.       0.00       7.75
 12-13      1.          0.000          0.000           273.          0.000          0.000            44.       0.00       7.75
 12-14      1.          0.000          0.000           235.          0.000          0.000            38.       0.00       7.75
 12-15      1.          0.000          0.000           170.          0.000          0.000            27.       0.00       7.75
 12-16      1.          0.000          0.000           123.          0.000          0.000            20.       0.00       7.75
 12-17      1.          0.000          0.000            89.          0.000          0.000            14.       0.00       7.75
 12-18      1.          0.000          0.000           136.          0.000          0.000            22.       0.00       7.75
 12-19      1.          0.000          0.000           268.          0.000          0.000            43.       0.00       7.75
 12-20      1.          0.000          0.000           180.          0.000          0.000            29.       0.00       7.75

 Sub-T      1.          0.000          0.000          2344.          0.000          0.000           375.       0.00       7.75
 After      1.          0.000          0.000          1067.          0.000          0.000           171.       0.00       7.75
 Total      1.          0.000          0.000          3411.          0.000          0.000           546.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000          3411.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.         36695.          0.      36695.            2752.          1284.              32659.
 12-08             0.             0.        367782.          0.     367782.           27584.         12868.             327330.
 12-09             0.             0.        261437.          0.     261437.           19608.          9147.             232682.
 12-10             0.             0.        185842.          0.     185842.           13938.          6502.             165402.
 12-11             0.             0.        132105.          0.     132105.            9908.          4622.             117575.
 12-12             0.             0.         93907.          0.      93907.            7043.          3286.              83578.
 12-13             0.             0.        339038.          0.     339038.           25428.         11862.             301748.
 12-14             0.             0.        291502.          0.     291502.           21863.         10199.             259440.
 12-15             0.             0.        210982.          0.     210982.           15824.          7382.             187776.
 12-16             0.             0.        152703.          0.     152703.           11453.          5343.             135908.
 12-17             0.             0.        110523.          0.     110523.            8289.          3867.              98366.
 12-18             0.             0.        168607.          0.     168607.           12645.          5899.             150062.
 12-19             0.             0.        333082.          0.     333082.           24981.         11654.             296447.
 12-20             0.             0.        223272.          0.     223272.           16745.          7812.             198714.

 Sub-T             0.             0.       2907476.          0.    2907476.          218061.        101727.            2587688.
 After             0.             0.       1324346.          0.    1324346.           99326.         46336.            1178684.
 Total             0.             0.       4231822.          0.    4231822.          317387.        148064.            3766372.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07            400.        150000.             0.             0.        150400.       -117741.       -117741.        -98189.
 12-08           4800.             0.             0.             0.          4800.        322530.        204789.        254938.
 12-09           4800.             0.             0.             0.          4800.        227882.        432671.        163753.
 12-10           4800.             0.             0.             0.          4800.        160602.        593273.        104917.
 12-11           4800.             0.             0.             0.          4800.        112775.        706048.         66978.
 12-12           4800.          7000.             0.             0.         11800.         71778.        777826.         38647.
 12-13           4800.             0.             0.             0.          4800.        296948.       1074774.        144676.
 12-14           4800.             0.             0.             0.          4800.        254640.       1329415.        113600.
 12-15           4800.             0.             0.             0.          4800.        182976.       1512391.         74210.
 12-16           4800.             0.             0.             0.          4800.        131108.       1643498.         48341.
 12-17           4800.          7000.             0.             0.         11800.         86566.       1730065.         29080.
 12-18           4800.             0.             0.             0.          4800.        145262.       1875327.         43357.
 12-19           4800.             0.             0.             0.          4800.        291647.       2166974.         80836.
 12-20           4800.             0.             0.             0.          4800.        193914.       2360888.         48863.

 Sub-T          62800.        164000.             0.             0.        226800.       2360888.       2360888.       1114006.
 After          35200.          7000.             0.             0.         42200.       1136484.       3497372.        198781.
 Total          98000.        171000.             0.             0.        269000.       3497372.       3497372.       1312787.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 11
   OPER: CENTURY RESOURCES
   RESERVOIR: 5808`,5526`                                                                           RESERVE TYPE
   HAMILL & HAMILL LOC. 3 PSUD1                                                                     POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000       921.160
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       698.487
                                                                                                         20.0000       542.664
 REMARKS                                                                                                 25.0000       430.608
                                                                                                         30.0000       348.026
                                                                                                         35.0000       285.813

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-08      1.          0.000          0.000           257.          0.000          0.000            41.       0.00       7.75
 12-09      1.          0.000          0.000           219.          0.000          0.000            35.       0.00       7.75
 12-10      1.          0.000          0.000           150.          0.000          0.000            24.       0.00       7.75
 12-11      1.          0.000          0.000           102.          0.000          0.000            16.       0.00       7.75
 12-12      1.          0.000          0.000            95.          0.000          0.000            15.       0.00       7.75
 12-13      1.          0.000          0.000           302.          0.000          0.000            48.       0.00       7.75
 12-14      1.          0.000          0.000           223.          0.000          0.000            36.       0.00       7.75
 12-15      1.          0.000          0.000           164.          0.000          0.000            26.       0.00       7.75
 12-16      1.          0.000          0.000           121.          0.000          0.000            19.       0.00       7.75
 12-17      1.          0.000          0.000            89.          0.000          0.000            14.       0.00       7.75
 12-18      1.          0.000          0.000            51.          0.000          0.000             8.       0.00       7.75
 12-19
 12-20

 Sub-T      1.          0.000          0.000          1772.          0.000          0.000           284.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000          1772.          0.000          0.000           284.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000          1772.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.             0.          0.          0.               0.             0.                  0.
 12-08             0.             0.        319172.          0.     319172.           23938.         11167.             284067.
 12-09             0.             0.        271145.          0.     271145.           20336.          9487.             241322.
 12-10             0.             0.        185650.          0.     185650.           13924.          6496.             165231.
 12-11             0.             0.        127113.          0.     127113.            9533.          4447.             113132.
 12-12             0.             0.        117721.          0.     117721.            8829.          4119.             104773.
 12-13             0.             0.        375051.          0.     375051.           28129.         13122.             333800.
 12-14             0.             0.        276149.          0.     276149.           20711.          9662.             245776.
 12-15             0.             0.        203327.          0.     203327.           15250.          7114.             180964.
 12-16             0.             0.        149709.          0.     149709.           11228.          5238.             133243.
 12-17             0.             0.        110230.          0.     110230.            8267.          3857.              98106.
 12-18             0.             0.         63138.          0.      63138.            4735.          2209.              56194.
 12-19
 12-20

 Sub-T             0.             0.       2198405.          0.    2198405.          164880.         76918.            1956606.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.       2198405.          0.    2198405.          164880.         76918.            1956606.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07              0.             0.             0.             0.             0.             0.             0.             0.
 12-08           4000.        150000.             0.             0.        154000.        130067.        130067.         97445.
 12-09           4800.             0.             0.             0.          4800.        236522.        366589.        170012.
 12-10           4800.             0.             0.             0.          4800.        160431.        527020.        104837.
 12-11           4800.          7000.             0.             0.         11800.        101332.        628352.         60376.
 12-12           4800.             0.             0.             0.          4800.         99973.        728325.         53317.
 12-13           4800.             0.             0.             0.          4800.        329000.       1057324.        161426.
 12-14           4800.             0.             0.             0.          4800.        240976.       1298300.        107489.
 12-15           4800.             0.             0.             0.          4800.        176164.       1474463.         71437.
 12-16           4800.             0.             0.             0.          4800.        128443.       1602906.         47352.
 12-17           4800.             0.             0.             0.          4800.         93306.       1696212.         31272.
 12-18           3600.             0.             0.             0.          3600.         52594.       1748806.         16196.
 12-19
 12-20

 Sub-T          50800.        157000.             0.             0.        207800.       1748806.       1748806.        921160.
 After              0.             0.             0.             0.             0.             0.       1748806.             0.
 Total          50800.        157000.             0.             0.        207800.       1748806.       1748806.        921160.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 12
   OPER: CENTURY RESOURCES
   RESERVOIR: 6348`,5808`                                                                           RESERVE TYPE
   HAMILL & HAMILL LOC. 4 PSUD1                                                                     POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000       667.815
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       525.221
                                                                                                         20.0000       420.111
 REMARKS                                                                                                 25.0000       341.085
                                                                                                         30.0000       280.606
                                                                                                         35.0000       233.569

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-08      1.          0.000          0.000           188.          0.000          0.000            30.       0.00       7.75
 12-09      1.          0.000          0.000           240.          0.000          0.000            38.       0.00       7.75
 12-10      1.          0.000          0.000           165.          0.000          0.000            26.       0.00       7.75
 12-11      1.          0.000          0.000           113.          0.000          0.000            18.       0.00       7.75
 12-12      1.          0.000          0.000            77.          0.000          0.000            12.       0.00       7.75
 12-13      1.          0.000          0.000           236.          0.000          0.000            38.       0.00       7.75
 12-14      1.          0.000          0.000           142.          0.000          0.000            23.       0.00       7.75
 12-15      1.          0.000          0.000            51.          0.000          0.000             8.       0.00       7.75
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000          1212.          0.000          0.000           194.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000          1212.          0.000          0.000           194.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000          1212.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.             0.          0.          0.               0.             0.                  0.
 12-08             0.             0.        233759.          0.     233759.           17532.          8179.             208048.
 12-09             0.             0.        298076.          0.     298076.           22356.         10429.             265291.
 12-10             0.             0.        204090.          0.     204090.           15307.          7141.             181643.
 12-11             0.             0.        139739.          0.     139739.           10480.          4889.             124369.
 12-12             0.             0.         95678.          0.      95678.            7176.          3348.              85154.
 12-13             0.             0.        293193.          0.     293193.           21989.         10258.             260945.
 12-14             0.             0.        176006.          0.     176006.           13200.          6158.             156648.
 12-15             0.             0.         63115.          0.      63115.            4734.          2208.              56173.
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.       1503656.          0.    1503656.          112774.         52610.            1338271.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.       1503656.          0.    1503656.          112774.         52610.            1338271.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07              0.             0.             0.             0.             0.             0.             0.             0.
 12-08           2800.        150000.             0.             0.        152800.         55248.         55248.         39593.
 12-09           4800.             0.             0.             0.          4800.        260491.        315739.        187240.
 12-10           4800.             0.             0.             0.          4800.        176843.        492582.        115561.
 12-11           4800.             0.             0.             0.          4800.        119569.        612151.         71034.
 12-12           4800.          7000.             0.             0.         11800.         73354.        685505.         39511.
 12-13           4800.             0.             0.             0.          4800.        256145.        941650.        125085.
 12-14           4800.             0.             0.             0.          4800.        151848.       1093498.         67957.
 12-15           3200.             0.             0.             0.          3200.         52973.       1146472.         21833.
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          34800.        157000.             0.             0.        191800.       1146472.       1146472.        667815.
 After              0.             0.             0.             0.             0.             0.       1146472.             0.
 Total          34800.        157000.             0.             0.        191800.       1146472.       1146472.        667815.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 13
   OPER: CENTURY RESOURCES
   RESERVOIR: 6348`,5808`,5526`                                                                     RESERVE TYPE
   HAMILL & HAMILL LOC. 5 PSUD1                                                                     POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000      1033.159
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       729.531
                                                                                                         20.0000       535.263
 REMARKS                                                                                                 25.0000       405.530
                                                                                                         30.0000       315.565
                                                                                                         35.0000       251.088

                  -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-08      1.          0.000          0.000           113.          0.000          0.000            18.       0.00       7.75
 12-09      1.          0.000          0.000           265.          0.000          0.000            42.       0.00       7.75
 12-10      1.          0.000          0.000           182.          0.000          0.000            29.       0.00       7.75
 12-11      1.          0.000          0.000           125.          0.000          0.000            20.       0.00       7.75
 12-12      1.          0.000          0.000            86.          0.000          0.000            14.       0.00       7.75
 12-13      1.          0.000          0.000           194.          0.000          0.000            31.       0.00       7.75
 12-14      1.          0.000          0.000           235.          0.000          0.000            38.       0.00       7.75
 12-15      1.          0.000          0.000           153.          0.000          0.000            24.       0.00       7.75
 12-16      1.          0.000          0.000            99.          0.000          0.000            16.       0.00       7.75
 12-17      1.          0.000          0.000           159.          0.000          0.000            25.       0.00       7.75
 12-18      1.          0.000          0.000           273.          0.000          0.000            44.       0.00       7.75
 12-19      1.          0.000          0.000           194.          0.000          0.000            31.       0.00       7.75
 12-20      1.          0.000          0.000           138.          0.000          0.000            22.       0.00       7.75

 Sub-T      1.          0.000          0.000          2216.          0.000          0.000           355.       0.00       7.75
 After      1.          0.000          0.000           161.          0.000          0.000            26.       0.00       7.75
 Total      1.          0.000          0.000          2377.          0.000          0.000           380.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000          2377.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.             0.          0.          0.               0.             0.                  0.
 12-08             0.             0.        139948.          0.     139948.           10496.          4897.             124555.
 12-09             0.             0.        328680.          0.     328680.           24651.         11500.             292529.
 12-10             0.             0.        225898.          0.     225898.           16942.          7904.             201052.
 12-11             0.             0.        155257.          0.     155257.           11644.          5432.             138181.
 12-12             0.             0.        106707.          0.     106707.            8003.          3733.              94970.
 12-13             0.             0.        240897.          0.     240897.           18067.          8429.             214401.
 12-14             0.             0.        291963.          0.     291963.           21897.         10215.             259851.
 12-15             0.             0.        189375.          0.     189375.           14203.          6626.             168546.
 12-16             0.             0.        122833.          0.     122833.            9212.          4298.             109323.
 12-17             0.             0.        197607.          0.     197607.           14821.          6914.             175873.
 12-18             0.             0.        338228.          0.     338228.           25367.         11834.             301027.
 12-19             0.             0.        240893.          0.     240893.           18067.          8428.             214398.
 12-20             0.             0.        171569.          0.     171569.           12868.          6003.             152699.

 Sub-T             0.             0.       2749856.          0.    2749856.          206239.         96212.            2447404.
 After             0.             0.        199147.          0.     199147.           14936.          6968.             177243.
 Total             0.             0.       2949002.          0.    2949002.          221175.        103180.            2624646.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07              0.             0.             0.             0.             0.             0.             0.             0.
 12-08           1600.        150000.             0.             0.        151600.        -27045.        -27045.        -22445.
 12-09           4800.             0.             0.             0.          4800.        287729.        260684.        206811.
 12-10           4800.             0.             0.             0.          4800.        196252.        456936.        128239.
 12-11           4800.             0.             0.             0.          4800.        133381.        590317.         79236.
 12-12           4800.          7000.             0.             0.         11800.         83170.        673487.         44932.
 12-13           4800.             0.             0.             0.          4800.        209601.        883088.        101008.
 12-14           4800.             0.             0.             0.          4800.        255051.       1138139.        113882.
 12-15           4800.             0.             0.             0.          4800.        163746.       1301885.         66469.
 12-16           4800.          7000.             0.             0.         11800.         97523.       1399408.         36041.
 12-17           4800.             0.             0.             0.          4800.        171073.       1570480.         56172.
 12-18           4800.             0.             0.             0.          4800.        296227.       1866707.         90273.
 12-19           4800.             0.             0.             0.          4800.        209598.       2076305.         58068.
 12-20           4800.             0.             0.             0.          4800.        147899.       2224204.         37250.

 Sub-T          59200.        164000.             0.             0.        223200.       2224204.       2224204.        995938.
 After           9200.             0.             0.             0.          9200.        168043.       2392247.         37221.
 Total          68400.        164000.             0.             0.        232400.       2392247.       2392247.       1033158.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 14
   OPER: CENTURY RESOURCES
   RESERVOIR: 6348`                                                                                 RESERVE TYPE
   HAMILL & HAMILL LOC. 6 PSUD1                                                                     POSSIBLE UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000       312.115
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       255.646
                                                                                                         20.0000       211.341
 REMARKS                                                                                                 25.0000       176.192
                                                                                                         30.0000       148.023
                                                                                                         35.0000       125.236

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-08      1.          0.000          0.000            29.          0.000          0.000             5.       0.00       7.75
 12-09      1.          0.000          0.000           270.          0.000          0.000            43.       0.00       7.75
 12-10      1.          0.000          0.000           162.          0.000          0.000            26.       0.00       7.75
 12-11      1.          0.000          0.000            97.          0.000          0.000            16.       0.00       7.75
 12-12      1.          0.000          0.000            28.          0.000          0.000             4.       0.00       7.75
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000           586.          0.000          0.000            94.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000           586.          0.000          0.000            94.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000           586.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.             0.          0.          0.               0.             0.                  0.
 12-08             0.             0.         36436.          0.      36436.            2733.          1275.              32429.
 12-09             0.             0.        334954.          0.     334954.           25122.         11719.             298113.
 12-10             0.             0.        200747.          0.     200747.           15056.          7024.             178668.
 12-11             0.             0.        120314.          0.     120314.            9024.          4210.             107081.
 12-12             0.             0.         34564.          0.      34564.            2592.          1209.              30762.
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.        727015.          0.     727015.           54526.         25437.             647052.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        727015.          0.     727015.           54526.         25437.             647052.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07              0.             0.             0.             0.             0.             0.             0.             0.
 12-08            400.        150000.             0.             0.        150400.       -117971.       -117971.        -89436.
 12-09           4800.             0.             0.             0.          4800.        293313.        175342.        211053.
 12-10           4800.             0.             0.             0.          4800.        173868.        349209.        113738.
 12-11           4800.             0.             0.             0.          4800.        102281.        451490.         60831.
 12-12           2000.             0.             0.             0.          2000.         28762.        480252.         15929.
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          16800.        150000.             0.             0.        166800.        480252.        480252.        312115.
 After              0.             0.             0.             0.             0.             0.        480252.             0.
 Total          16800.        150000.             0.             0.        166800.        480252.        480252.        312115.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 15
   OPER: CENTURY RES INC
   RESERVOIR: MIOCENE 5944-5946                                                                     RESERVE TYPE
   HAMILL & HAMILL NO. 02                                                                           PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000       378.935
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       369.684
                                                                                                         20.0000       361.188
 REMARKS                                                                                                 25.0000       353.353
                                                                                                         30.0000       346.103
                                                                                                         35.0000       339.370

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      1.          0.000          0.000           276.          0.000          0.000            44.       0.00       7.75
 12-07      1.          0.000          0.000            63.          0.000          0.000            10.       0.00       7.75
 12-08      1.          0.000          0.000             6.          0.000          0.000             1.       0.00       7.75
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000           345.          0.000          0.000            55.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000           345.          0.000          0.000            55.       0.00       7.75

 Cumulative             0.000          0.000           101.
 Ultimate               0.000          0.000           446.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.        342725.          0.     342725.               0.         12964.             329761.
 12-07             0.             0.         77790.          0.      77790.               0.          2942.              74847.
 12-08             0.             0.          6893.          0.       6893.               0.           261.               6633.
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.        427408.          0.     427408.               0.         16167.             411241.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        427408.          0.     427408.               0.         16167.             411241.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06           4918.             0.             0.             0.          4918.        324844.        324844.        313132.
 12-07           4918.             0.             0.             0.          4918.         69930.        394773.         61387.
 12-08           1229.             0.             0.             0.          1229.          5403.        400177.          4416.
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          11065.             0.             0.             0.         11065.        400177.        400177.        378935.
 After              0.             0.             0.             0.             0.             0.        400177.             0.
 Total          11065.             0.             0.             0.         11065.        400177.        400177.        378935.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 16
   OPER: CENTURY RES INC
   RESERVOIR: MIOCENE 3270-3273                                                                     RESERVE TYPE
   HAMILL & HAMILL NO. 10                                                                           PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000       220.164
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       207.336
                                                                                                         20.0000       196.209
 REMARKS                                                                                                 25.0000       186.476
                                                                                                         30.0000       177.898
                                                                                                         35.0000       170.282

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      1.          0.000          0.000            96.          0.000          0.000            15.       0.00       7.75
 12-07      1.          0.000          0.000            60.          0.000          0.000            10.       0.00       7.75
 12-08      1.          0.000          0.000            38.          0.000          0.000             6.       0.00       7.75
 12-09      1.          0.000          0.000            24.          0.000          0.000             4.       0.00       7.75
 12-10      1.          0.000          0.000            14.          0.000          0.000             2.       0.00       7.75
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000           231.          0.000          0.000            37.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000           231.          0.000          0.000            37.       0.00       7.75

 Cumulative             0.000          0.000            26.
 Ultimate               0.000          0.000           257.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.        118982.          0.     118982.               0.          4500.             114482.
 12-07             0.             0.         74633.          0.      74633.               0.          2823.              71810.
 12-08             0.             0.         46815.          0.      46815.               0.          1771.              45044.
 12-09             0.             0.         29365.          0.      29365.               0.          1111.              28255.
 12-10             0.             0.         17191.          0.      17191.               0.           650.              16541.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.        286987.          0.     286987.               0.         10855.             276132.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        286987.          0.     286987.               0.         10855.             276132.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06           4774.             0.             0.             0.          4774.        109708.        109708.        105042.
 12-07           4774.             0.             0.             0.          4774.         67037.        176745.         58357.
 12-08           4774.             0.             0.             0.          4774.         40271.        217015.         31875.
 12-09           4774.             0.             0.             0.          4774.         23481.        240496.         16901.
 12-10           4376.             0.             0.             0.          4376.         12165.        252662.          7990.
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          23470.             0.             0.             0.         23470.        252662.        252662.        220164.
 After              0.             0.             0.             0.             0.             0.        252662.             0.
 Total          23470.             0.             0.             0.         23470.        252662.        252662.        220164.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 17
   OPER: CENTURY RES INC
   RESERVOIR: MIOCENE 3435                                                                          RESERVE TYPE
   HAMILL & HAMILL NO. 10 - DEP                                                                     PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.0000000  0.0000000   0.0000000  0.0000000            0.00       0.00        0.00         10.0000         0.000
 FINAL        0.0000000  0.0000000   0.0000000  0.0000000            0.00       0.00        0.00         15.0000         0.000
                                                                                                         20.0000         0.000
 REMARKS                                                                                                 25.0000         0.000
                                                                                                         30.0000         0.000
                                                                                                         35.0000         0.000

                  -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000             0.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.             0.          0.          0.               0.             0.                  0.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.             0.          0.          0.               0.             0.                  0.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T              0.             0.             0.             0.             0.             0.             0.             0.
 After              0.             0.             0.             0.             0.             0.             0.             0.
 Total              0.             0.             0.             0.             0.             0.             0.             0.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 18
   OPER: CENTURY RES INC
   RESERVOIR: MIOCENE 2760-2763                                                                     RESERVE TYPE
   HAMILL & HAMILL NO. 11                                                                           PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000        49.744
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000        48.082
                                                                                                         20.0000        46.557
 REMARKS                                                                                                 25.0000        45.150
                                                                                                         30.0000        43.850
                                                                                                         35.0000        42.643

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      1.          0.000          0.000            44.          0.000          0.000             7.       0.00       7.75
 12-07      1.          0.000          0.000            16.          0.000          0.000             3.       0.00       7.75
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000            60.          0.000          0.000            10.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000            60.          0.000          0.000            10.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000            60.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.         54907.          0.      54907.               0.          2077.              52830.
 12-07             0.             0.         19899.          0.      19899.               0.           753.              19146.
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.         74805.          0.      74805.               0.          2830.              71976.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.         74805.          0.      74805.               0.          2830.              71976.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06           4409.         10000.             0.             0.         14409.         38421.         38421.         36420.
 12-07           4008.             0.             0.             0.          4008.         15138.         53559.         13324.
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T           8417.         10000.             0.             0.         18417.         53559.         53559.         49744.
 After              0.             0.             0.             0.             0.             0.         53559.             0.
 Total           8417.         10000.             0.             0.         18417.         53559.         53559.         49744.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 19
   OPER: CENTURY RES INC
   RESERVOIR: MIOCENE 4204-4214                                                                     RESERVE TYPE
   HAMILL & HAMILL NO. 14                                                                           PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000        71.755
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000        69.549
                                                                                                         20.0000        67.537
 REMARKS                                                                                                 25.0000        65.695
                                                                                                         30.0000        64.002
                                                                                                         35.0000        62.439

                  -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      1.          0.000          0.000            49.          0.000          0.000             8.       0.00       7.75
 12-07      1.          0.000          0.000            22.          0.000          0.000             3.       0.00       7.75
 12-08      1.          0.000          0.000             2.          0.000          0.000             0.       0.00       7.75
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000            73.          0.000          0.000            12.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000            73.          0.000          0.000            12.       0.00       7.75

 Cumulative             0.000          0.000            32.
 Ultimate               0.000          0.000           106.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.         61045.          0.      61045.               0.          2309.              58736.
 12-07             0.             0.         26976.          0.      26976.               0.          1020.              25956.
 12-08             0.             0.          2718.          0.       2718.               0.           103.               2615.
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.         90739.          0.      90739.               0.          3432.              87307.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.         90739.          0.      90739.               0.          3432.              87307.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06           4812.             0.             0.             0.          4812.         53924.         53924.         51791.
 12-07           4812.             0.             0.             0.          4812.         21144.         75067.         18478.
 12-08            802.             0.             0.             0.           802.          1813.         76881.          1487.
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          10426.             0.             0.             0.         10426.         76881.         76881.         71755.
 After              0.             0.             0.             0.             0.             0.         76881.             0.
 Total          10426.             0.             0.             0.         10426.         76881.         76881.         71755.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 20
   OPER: CENTURY RES INC
   RESERVOIR: MIOCENE 4230-4233                                                                     RESERVE TYPE
   HAMILL & HAMILL NO. 17                                                                           PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000        51.640
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000        50.257
                                                                                                         20.0000        48.988
 REMARKS                                                                                                 25.0000        47.818
                                                                                                         30.0000        46.737
                                                                                                         35.0000        45.733

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      1.          0.000          0.000            40.          0.000          0.000             6.       0.00       7.75
 12-07      1.          0.000          0.000            15.          0.000          0.000             2.       0.00       7.75
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000            55.          0.000          0.000             9.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000            55.          0.000          0.000             9.       0.00       7.75

 Cumulative             0.000          0.000            45.
 Ultimate               0.000          0.000           100.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.         49602.          0.      49602.               0.          1876.              47726.
 12-07             0.             0.         18351.          0.      18351.               0.           694.              17657.
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.         67953.          0.      67953.               0.          2570.              65383.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.         67953.          0.      67953.               0.          2570.              65383.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06           5765.             0.             0.             0.          5765.         41961.         41961.         40334.
 12-07           4804.             0.             0.             0.          4804.         12853.         54814.         11306.
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          10569.             0.             0.             0.         10569.         54814.         54814.         51640.
 After              0.             0.             0.             0.             0.             0.         54814.             0.
 Total          10569.             0.             0.             0.         10569.         54814.         54814.         51640.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 21
   OPER: CENTURY RES INC
   RESERVOIR: MIOCENE 4300                                                                          RESERVE TYPE
   HAMILL & HAMILL NO. 19                                                                           PROVED PRODUCING

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.0000000  0.0000000   0.0000000  0.0000000            0.00       0.00        7.75         10.0000         0.000
 FINAL        0.0000000  0.0000000   0.0000000  0.0000000            0.00       0.00        0.00         15.0000         0.000
                                                                                                         20.0000         0.000
 REMARKS                                                                                                 25.0000         0.000
                                                                                                         30.0000         0.000
                                                                                                         35.0000         0.000

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00

 Cumulative             0.000          0.000           107.
 Ultimate               0.000          0.000           107.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.             0.          0.          0.               0.             0.                  0.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.             0.          0.          0.               0.             0.                  0.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06
 12-07
 12-08
 12-09
 12-10
 12-11
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T              0.             0.             0.             0.             0.             0.             0.             0.
 After              0.             0.             0.             0.             0.             0.             0.             0.
 Total              0.             0.             0.             0.             0.             0.             0.             0.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 22
   OPER: CENTURY RESOURCES
   RESERVOIR: 4220 & 4170                                                                           RESERVE TYPE
   HAMILL & HAMILL NO. 21                                                                           PROVED UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000       306.830
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       261.906
                                                                                                         20.0000       224.951
 REMARKS                                                                                                 25.0000       194.282
                                                                                                         30.0000       168.625
                                                                                                         35.0000       147.002

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      1.          0.000          0.000           142.          0.000          0.000            23.       0.00       7.75
 12-08      1.          0.000          0.000           132.          0.000          0.000            21.       0.00       7.75
 12-09      1.          0.000          0.000           181.          0.000          0.000            29.       0.00       7.75
 12-10      1.          0.000          0.000            90.          0.000          0.000            14.       0.00       7.75
 12-11      1.          0.000          0.000             3.          0.000          0.000             1.       0.00       7.75
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000           549.          0.000          0.000            88.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000           549.          0.000          0.000            88.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000           549.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.        175968.          0.     175968.           13198.          6157.             156613.
 12-08             0.             0.        164083.          0.     164083.           12306.          5741.             146036.
 12-09             0.             0.        225057.          0.     225057.           16879.          7874.             200303.
 12-10             0.             0.        112020.          0.     112020.            8402.          3919.              99699.
 12-11             0.             0.          3983.          0.       3983.             299.           139.               3545.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.        681111.          0.     681111.           51083.         23831.             606197.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        681111.          0.     681111.           51083.         23831.             606197.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07           4000.        157000.             0.             0.        161000.         -4387.         -4387.         -8275.
 12-08           4800.             0.             0.             0.          4800.        141236.        136849.        110095.
 12-09           4800.             0.             0.             0.          4800.        195503.        332352.        140886.
 12-10           4800.             0.             0.             0.          4800.         94899.        427252.         62179.
 12-11            400.             0.             0.             0.           400.          3145.        430397.          1945.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          18800.        157000.             0.             0.        175800.        430397.        430397.        306830.
 After              0.             0.             0.             0.             0.             0.        430397.             0.
 Total          18800.        157000.             0.             0.        175800.        430397.        430397.        306830.

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

R.A.LENSER & ASSOCIATES                      AQUATIC CELLULOSE INTERNATIONAL CORP.
     HOUSTON, TEXAS                            ESTIMATED RESERVES AND ECONOMICS
                                         ATTRIBUTABLE TO CERTAIN LEASEHOLD INTERESTS
                                                    AS OF JANUARY 1, 2006
   SARGENT SOUTH , MATAGORDA CTY, TX                                                                  TABLE 23
   OPER: CENTURY RESOURCES
   RESERVOIR: 2750` & 4040`                                                                         RESERVE TYPE
   HAMILL & HAMILL NO. 22                                                                           PROVED UNDEVELOPED

               ----------  REVENUE INTERESTS  ----------          --------PRODUCT PRICES--------          -FUTURE NET INCOME-
               Expense      Oil/       Plant                      Oil/Cond  Plt. Prod.     Gas            Discount     Income
               Interest     Cond.     Products     Gas             $/Bbl      $/Bbl       $/Mcf            Rate          M$
               --------  ----------   --------   -------           ------     ------      ------          --------------------
 INITIAL      0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         10.0000       444.198
 FINAL        0.2000000  0.0000000   0.0000000  0.1600000            0.00       0.00        7.75         15.0000       377.909
                                                                                                         20.0000       324.296
 REMARKS                                                                                                 25.0000       280.466
                                                                                                         30.0000       244.280
                                                                                                         35.0000       214.135

                 -------ESTIMATED 8/8 THS PRODUCTION-------     ---------COMPANY NET PRODUCTION---------    --AVERAGE PRICES--

 -END-
 MO-YR   WELLS     Oil/Cond      Plant Prod.        Gas          Oil/Cond     Plant Prod.      Sales Gas     Oil/Co     Gas
 -----  ------   ----MBbls---   ----MBbls---     ---MMCF---     ---MBbls--     ---MBbls--      ---MMCF--    --$/bbl  --$/MCF--
 12-06      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 12-07      1.          0.000          0.000           171.          0.000          0.000            27.       0.00       7.75
 12-08      1.          0.000          0.000           167.          0.000          0.000            27.       0.00       7.75
 12-09      1.          0.000          0.000           104.          0.000          0.000            17.       0.00       7.75
 12-10      1.          0.000          0.000           217.          0.000          0.000            35.       0.00       7.75
 12-11      1.          0.000          0.000            75.          0.000          0.000            12.       0.00       7.75
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T      1.          0.000          0.000           734.          0.000          0.000           117.       0.00       7.75
 After      0.          0.000          0.000             0.          0.000          0.000             0.       0.00       0.00
 Total      1.          0.000          0.000           734.          0.000          0.000           117.       0.00       7.75

 Cumulative             0.000          0.000             0.
 Ultimate               0.000          0.000           734.

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

 -END-
 MO-YR    Oil/Cond     Plt. Products        Gas        Other       Total           SEV TAX         ADV TAX      AFTER SEV & ADV
 -----   -----$------   -----$------    -----$-----  ----$-----  ----$-----      -----$-----    ------$----     -------$-------
 12-06             0.             0.             0.          0.          0.               0.             0.                  0.
 12-07             0.             0.        212066.          0.     212066.           15905.          7420.             188742.
 12-08             0.             0.        206698.          0.     206698.           15502.          7232.             183964.
 12-09             0.             0.        129463.          0.     129463.            9710.          4530.             115223.
 12-10             0.             0.        269638.          0.     269638.           20223.          9434.             239981.
 12-11             0.             0.         92765.          0.      92765.            6957.          3246.              82562.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T             0.             0.        910630.          0.     910630.           68297.         31861.             810471.
 After             0.             0.             0.          0.          0.               0.             0.                  0.
 Total             0.             0.        910630.          0.     910630.           68297.         31861.             810471.

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

 -END-     Operating     Development    Abandonment                                         Undiscounted            Discounted
 MO-YR       Costs          Costs          Costs          Other          Total          Annual      Cumulative        @ 10.0%
 -----   ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------  ------$------
 12-06              0.             0.             0.             0.             0.             0.             0.             0.
 12-07           2800.        150000.             0.             0.        152800.         35942.         35942.         27278.
 12-08           4800.          7000.             0.             0.         11800.        172164.        208105.        136718.
 12-09           4800.             0.             0.             0.          4800.        110423.        318529.         78669.
 12-10           4800.             0.             0.             0.          4800.        235181.        553709.        154341.
 12-11           4000.             0.             0.             0.          4000.         78562.        632271.         47191.
 12-12
 12-13
 12-14
 12-15
 12-16
 12-17
 12-18
 12-19
 12-20

 Sub-T          21200.        157000.             0.             0.        178200.        632271.        632271.        444198.
 After              0.             0.             0.             0.             0.             0.        632271.             0.
 Total          21200.        157000.             0.             0.        178200.        632271.        632271.        444198.

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

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