Document:

Exhibit 10.7

                             STOCK PLEDGE AGREEMENT
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     This Stock Pledge Agreement (this "Agreement"), dated as of April 26, 2006,
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among  Laurus  Master  Fund,  Ltd.  (the "Pledgee"), New Century Energy Corp., a
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Colorado  corporation (the "Company"), and each of the other undersigned parties
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(other  than  the Pledgee) (the Company and each such other undersigned party, a
"Pledgor"  and  collectively,  the  "Pledgors").
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                                   BACKGROUND

     Gulf  Coast  Oil  Corporation,  a  Delaware corporation ("Gulf Coast"), has
entered  into  a  Securities Purchase Agreement, dated as of the date hereof (as
amended,  modified,  restated or supplemented from time to time, the "Securities
                                                                      ----------
Purchase  Agreement"),  pursuant  to  which the Pledgee provides or will provide
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certain  financial  accommodations  to  Gulf  Coast.

     Company  has  executed  and delivered to Pledgee a Guaranty dated as of the
date  hereof  (as amended, modified, restated or supplemented from time to time,
the "Guaranty"), pursuant to which Company guaranteed to Pledgee the payment and
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performance  of  all  obligations  and  indebtedness  of  Gulf Coast to Pledgee.

     In  order  to  induce  the  Pledgee  to  provide or continue to provide the
financial  accommodations  described in the Securities Purchase Agreement and to
secure  each Pledgor's and Gulf Coast's obligations and indebtedness to Pledgee,
each  Pledgor  has  agreed  to  pledge  and  grant  a  security  interest in the
collateral described herein to the Pledgee on the terms and conditions set forth
herein.

     NOW,  THEREFORE,  in  consideration  of the premises and for other good and
valuable  consideration the receipt of which is hereby acknowledged, the parties
hereto  agree  as  follows:

     1.  Defined  Terms. All capitalized terms used herein which are not defined
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shall  have  the  meanings  given  to them in the Securities Purchase Agreement.

     2.  Pledge  and Grant of Security Interest. To secure the full and punctual
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payment and performance of (the following clauses (a) through (c), collectively,
the  "Obligations")  (a) the obligations under the Securities Purchase Agreement
and the Related Agreements referred to in the Securities Purchase Agreement (the
Securities  Purchase  Agreement  and  the  Related  Agreements,  as  each may be
amended, restated, modified and/or supplemented from time to time, collectively,
the  "Documents"),  (b)  the  obligations  and liabilities of Company to Pledgee
under  the  Guaranty and (c) all other obligations and liabilities of Gulf Coast
and  each  Pledgor  to  the  Pledgee  whether now existing or hereafter arising,
direct  or  indirect, liquidated or unliquidated, absolute or contingent, due or
not  due  and  whether  under,  pursuant  to  or evidenced by a note, agreement,
guaranty,  instrument  or  otherwise  (in  each  case,  irrespective  of  the
genuineness,  validity,  regularity or enforceability of such Obligations, or of

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any  instrument  evidencing any of the Obligations or of any collateral therefor
or  of  the  existence  or  extent  of  such collateral, and irrespective of the
allowability,  allowance  or  disallowance  of  any  or  all of such in any case
commenced  by  or  against  Gulf Coast and/or any Pledgor under Title 11, United
States  Code,  including, without limitation, obligations of Gulf Coast and each
Pledgor  for  post-petition  interest,  fees,  costs and charges that would have
accrued or been added to the Obligations but for the commencement of such case),
each  Pledgor  hereby  pledges,  assigns,  hypothecates,  transfers and grants a
security  interest  to  Pledgee  in  all  of  the  following (the "Collateral"):

          (a)  the  shares  of  stock set forth on Schedule A annexed hereto and
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     expressly  made a part hereof (together with any additional shares of stock
     or  other  equity  interests acquired by any Pledgor, the "Pledged Stock"),
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     the  certificates  representing  the Pledged Stock and all dividends, cash,
     instruments  and  other  property  or  proceeds from time to time received,
     receivable or otherwise distributed in respect of or in exchange for any or
     all  of  the  Pledged  Stock;

          (b)  all  additional shares of stock of any issuer (each, an "Issuer")
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     of  the  Pledged  Stock  from  time  to time acquired by any Pledgor in any
     manner, including, without limitation, stock dividends or a distribution in
     connection  with  any  increase  or reduction of capital, reclassification,
     merger,  consolidation, sale of assets, combination of shares, stock split,
     spin-off  or  split-off  (which  shares  shall  be deemed to be part of the
     Collateral),  and the certificates representing such additional shares, and
     all  dividends,  cash, instruments and other property or proceeds from time
     to  time  received, receivable or otherwise distributed in respect of or in
     exchange  for  any  or  all  of  such  shares;  and

          (c) all options and rights, whether as an addition to, in substitution
     of  or  in  exchange for any shares of any Pledged Stock and all dividends,
     cash,  instruments  and  other  property  or  proceeds  from  time  to time
     received,  receivable or otherwise distributed in respect of or in exchange
     for  any  or  all  such  options  and  rights.

     3.  Delivery of Collateral. All certificates representing or evidencing the
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Pledged Stock shall be delivered to and held by or on behalf of Pledgee pursuant
hereto  and  shall  be  accompanied  by duly executed instruments of transfer or
assignments  in  blank,  all in form and substance satisfactory to Pledgee. Each
Pledgor  hereby  authorizes the Issuer upon demand by the Pledgee to deliver any
certificates,  instruments  or other distributions issued in connection with the
Collateral  directly  to  the  Pledgee,  in each case to be held by the Pledgee,
subject  to  the terms hereof. Upon the occurrence and during the continuance of
an Event of Default (as defined below), the Pledgee shall have the right, during
such time in its discretion and without notice to the Pledgor, to transfer to or
to  register in the name of the Pledgee or any of its nominees any or all of the
Pledged  Stock.  In  addition,  the Pledgee shall have the right at such time to
exchange  certificates  or  instruments representing or evidencing Pledged Stock
for  certificates  or  instruments  of  smaller  or  larger  denominations.

     4. Representations and Warranties of each Pledgor. Each Pledgor jointly and
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severally  represents  and  warrants  to  the Pledgee (which representations and
warranties  shall  be deemed to continue to be made until all of the Obligations

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have  been  paid  in  full  and  each Document and each agreement and instrument
entered  into  in  connection  therewith  has been irrevocably terminated) that:

          (a)  the  execution,  delivery and performance by each Pledgor of this
     Agreement  and  the  pledge of the Collateral hereunder do not and will not
     result  in  any violation of any agreement, indenture, instrument, license,
     judgment, decree, order, law, statute, ordinance or other governmental rule
     or  regulation  applicable  to  any  Pledgor;

          (b)  this  Agreement  constitutes  the  legal,  valid,  and  binding
     obligation  of  each Pledgor enforceable against each Pledgor in accordance
     with  its  terms;

          (c)  (i)  all  Pledged  Stock  owned  by  each Pledgor is set forth on
     Schedule  A hereto and (ii) each Pledgor is the direct and beneficial owner
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     of  each  share  of  the  Pledged  Stock;

          (d)  all of the shares of the Pledged Stock have been duly authorized,
     validly  issued  and  are  fully  paid  and  nonassessable;

          (e)  no  consent  or approval of any person, corporation, governmental
     body, regulatory authority or other entity, is or will be necessary for (i)
     the  execution,  delivery  and  performance  of  this  Agreement,  (ii) the
     exercise  by  the  Pledgee  of any rights with respect to the Collateral or
     (iii)  the  pledge  and assignment of, and the grant of a security interest
     in,  the  Collateral  hereunder;

          (f)  there  are  no  pending  or,  to the best of Pledgor's knowledge,
     threatened  actions  or  proceedings  before  any  court,  judicial  body,
     administrative  agency  or arbitrator which may materially adversely affect
     the  Collateral;

          (g)  each  Pledgor has the requisite power and authority to enter into
     this  Agreement  and  to pledge and assign the Collateral to the Pledgee in
     accordance  with  the  terms  of  this  Agreement;

          (h)  each Pledgor owns each item of the Collateral and, except for the
     pledge  and  security interest granted to Pledgee hereunder, the Collateral
     shall  be,  immediately  following  the  closing  of  the  transactions
     contemplated  by  the  Documents,  free  and  clear  of  any other security
     interest, mortgage, pledge, claim, lien, charge, hypothecation, assignment,
     offset  or  encumbrance  whatsoever  (collectively,  "Liens");

          (i)  there  are  no  restrictions  on  transfer  of  the Pledged Stock
     contained  in  the  certificate  of incorporation or by-laws (or equivalent
     organizational  documents)  of  the  Issuer  or  otherwise  which  have not
     otherwise  been  enforceably  and  legally waived by the necessary parties;

          (j)  none  of  the  Pledged  Stock  has  been issued or transferred in
     violation  of the securities registration, securities disclosure or similar
     laws of any jurisdiction to which such issuance or transfer may be subject;

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          (k)  the  pledge  and  assignment of the Collateral and the grant of a
     security  interest  under  this Agreement vest in the Pledgee all rights of
     each  Pledgor  in  the  Collateral  as  contemplated by this Agreement; and

          (l)  the  Pledged  Stock constitutes one hundred percent (100%) of the
     issued  and  outstanding  shares  of  capital  stock  of  each  Issuer.

     5.  Covenants. Each Pledgor jointly and severally covenants that, until the
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Obligations  shall  be indefeasibly satisfied in full and each Document and each
agreement  and  instrument  entered  into in connection therewith is irrevocably
terminated:

          (a)  No  Pledgor  will  sell,  assign,  transfer, convey, or otherwise
     dispose  of its rights in or to the Collateral or any interest therein; nor
     will  any Pledgor create, incur or permit to exist any Lien whatsoever with
     respect  to  any  of the Collateral or the proceeds thereof other than that
     created  hereby.

          (b)  Each  Pledgor will, at its expense, defend Pledgee's right, title
     and  security  interest  in and to the Collateral against the claims of any
     other  party.

          (c)  Each  Pledgor  shall at any time, and from time to time, upon the
     written  request of Pledgee, execute and deliver such further documents and
     do  such further acts and things as Pledgee may reasonably request in order
     to  effectuate  the  purposes  of  this  Agreement  including,  but without
     limitation,  delivering  to  Pledgee,  upon  the  occurrence of an Event of
     Default,  irrevocable  proxies  in  respect  of  the  Collateral  in  form
     satisfactory  to  Pledgee.  Until receipt thereof, upon an Event of Default
     that  has  occurred  and  is continuing beyond any applicable grace period,
     this  Agreement  shall constitute Pledgor's proxy to Pledgee or its nominee
     to  vote  all  shares of Collateral then registered in each Pledgor's name.

          (d)  No  Pledgor  will  consent  to or approve the issuance of (i) any
     additional  shares  of any class of capital stock or other equity interests
     of the Issuer; or (ii) any securities convertible either voluntarily by the
     holder thereof or automatically upon the occurrence or nonoccurrence of any
     event  or  condition  into,  or  any  securities exchangeable for, any such
     shares  of  the  Issuer, unless, in either case, such shares are pledged as
     Collateral  pursuant  to  this  Agreement.

     6.  Voting  Rights  and  Dividends. In addition to the Pledgee's rights and
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remedies  set  forth in Section 8 hereof, in case an Event of Default shall have
occurred and be continuing, beyond any applicable cure period, the Pledgee shall
(i)  be  entitled  to  vote  the  Collateral, (ii) be entitled to give consents,
waivers  and  ratifications  in  respect  of the Collateral (each Pledgor hereby
irrevocably  constituting  and  appointing  the  Pledgee,  with  full  power  of
substitution,  the proxy and attorney-in-fact of each Pledgor for such purposes)
and (iii) be entitled to collect and receive for its own use cash dividends paid
on  the  Collateral.  No  Pledgor shall be permitted to exercise or refrain from
exercising  any  voting rights or other powers if, in the reasonable judgment of
the  Pledgee,  such  action would have a material adverse effect on the value of
the  Collateral  or  any part thereof; and, provided, further, that each Pledgor
shall  give  at  least five (5) days' written notice of the manner in which such

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Pledgor  intends to exercise, or the reasons for refraining from exercising, any
voting  rights  or  other  powers  other  than  with  respect to any election of
directors  and  voting  with  respect  to  any incidental matters. Following the
occurrence  of an Event of Default, all dividends and all other distributions in
respect  of  any  of the Collateral shall be delivered to the Pledgee to hold as
Collateral  and  shall, if received by any Pledgor, be received in trust for the
benefit  of  the  Pledgee, be segregated from the other property or funds of any
other  Pledgor,  and  be forthwith delivered to the Pledgee as Collateral in the
same  form  as  so  received  (with  any  necessary  endorsement).

     7. Event of Default. An "Event of Default" under this Agreement shall occur
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upon  the  happening  of  any  of  the  following  events:

          (a)  An "Event of Default" under any Document or any agreement or note
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     related to any Document or a default under the Guaranty shall have occurred
     and  be  continuing  beyond  any  applicable  cure  period;

          (b)  Any  Pledgor  shall  default  in  the  performance  of any of its
     obligations  under  any  Document,  including,  without  limitation,  this
     Agreement,  and  such  default  shall  not  be cured during the cure period
     applicable  thereto;

          (c)  Any representation or warranty of any Pledgor made herein, in any
     Document  or  in  any  agreement, statement or certificate given in writing
     pursuant  hereto or thereto or in connection herewith or therewith shall be
     false  or  misleading  in  any  material  respect;

          (d) Any portion of the Collateral is subjected to a levy of execution,
     attachment,  distraint  or  other  judicial  process  or any portion of the
     Collateral  is the subject of a claim (other than by the Pledgee) of a Lien
     or  other  right or interest in or to the Collateral and such levy or claim
     shall  not  be  cured,  disputed  or stayed within a period of fifteen (15)
     business  days  after  the  occurrence  thereof;  or

          (e)  Gulf  Coast  or  any  Pledgor shall (i) apply for, consent to, or
     suffer  to  exist  the  appointment  of,  or the taking of possession by, a
     receiver, custodian, trustee, liquidator or other fiduciary of itself or of
     all  or  a substantial part of its property, (ii) make a general assignment
     for  the  benefit  of  creditors, (iii) commence a voluntary case under any
     state  or  federal bankruptcy laws (as now or hereafter in effect), (iv) be
     adjudicated  a  bankrupt  or insolvent, (v) file a petition seeking to take
     advantage  of  any  other  law  providing  for  the relief of debtors, (vi)
     acquiesce  to,  or  fail  to  have  dismissed, within thirty (30) days, any
     petition  filed  against  it  in any involuntary case under such bankruptcy
     laws,  or  (vii)  take  any  action for the purpose of effecting any of the
     foregoing.

     8.  Remedies.  In  case  an  Event  of  Default  shall have occurred and is
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continuing,  the  Pledgee  may:

          (a)  Transfer  any or all of the Collateral into its name, or into the
     name  of  its  nominee  or  nominees;

          (b)  Exercise  all  corporate  rights  with  respect to the Collateral
     including,  without  limitation,  all  rights  of  conversion,  exchange,
     subscription  or  any other rights, privileges or options pertaining to any
     shares  of  the  Collateral  as  if  it  were  the  absolute owner thereof,
     including,  but  without  limitation,  the  right  to  exchange,  at  its
     discretion,  any  or  all of the Collateral upon the merger, consolidation,
     reorganization,  recapitalization  or  other  readjustment  of  the  Issuer
     thereof,  or  upon  the  exercise  by the Issuer of any right, privilege or
     option  pertaining  to any of the Collateral, and, in connection therewith,
     to  deposit  and  deliver any and all of the Collateral with any committee,
     depository,  transfer  agent, registrar or other designated agent upon such
     terms  and  conditions as it may determine, all without liability except to
     account  for  property  actually  received  by  it;  and

          (c)  Subject  to  any  requirement of applicable law, sell, assign and
     deliver  the whole or, from time to time, any part of the Collateral at the
     time held by the Pledgee, at any private sale or at public auction, with or
     without  demand,  advertisement  or  notice of the time or place of sale or
     adjournment  thereof  or  otherwise (all of which are hereby waived, except
     such  notice  as  is  required by applicable law and cannot be waived), for
     cash  or credit or for other property for immediate or future delivery, and
     for  such  price  or  prices  and  on such terms as the Pledgee in its sole
     discretion  may  determine,  or  as  may  be  required  by  applicable law.

          Each Pledgor hereby waives and releases any and all right or equity of
     redemption,  whether  before  or  after  sale  hereunder. At any such sale,
     unless  prohibited  by applicable law, the Pledgee may bid for and purchase
     the whole or any part of the Collateral so sold free from any such right or
     equity of redemption. All moneys received by the Pledgee hereunder, whether
     upon sale of the Collateral or any part thereof or otherwise, shall be held
     by  the  Pledgee  and  applied  by  it as provided in Section 10 hereof. No
     failure  or  delay  on  the  part  of  the Pledgee in exercising any rights
     hereunder shall operate as a waiver of any such rights nor shall any single
     or  partial  exercise  of  any  such  rights  preclude  any other or future
     exercise thereof or the exercise of any other rights hereunder. The Pledgee
     shall  have no duty as to the collection or protection of the Collateral or
     any income thereon nor any duty as to preservation of any rights pertaining
     thereto,  except  to apply the funds in accordance with the requirements of
     Section  10  hereof.  The  Pledgee  may exercise its rights with respect to
     property  held hereunder without resort to other security for or sources of
     reimbursement  for  the  Obligations. In addition to the foregoing, Pledgee
     shall  have  all  of the rights, remedies and privileges of a secured party
     under the Uniform Commercial Code of New York (the "UCC") regardless of the
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     jurisdiction  in  which  enforcement  hereof  is  sought.

     9.  Private Sale. Each Pledgor recognizes that the Pledgee may be unable to
         ------------
effect (or to do so only after delay which would adversely affect the value that
might  be  realized  from  the  Collateral)  a public sale of all or part of the
Collateral  by reason of certain prohibitions contained in the Securities Act of
1933,  as  amended (the "Securities Act"), and may be compelled to resort to one
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or more private sales to a restricted group of purchasers who will be obliged to
agree, among other things, to acquire such Collateral for their own account, for
investment  and  not  with  a  view  to the distribution or resale thereof. Each

<PAGE>

Pledgor  agrees  that  any  such private sale may be at prices and on terms less
favorable to the seller than if sold at public sales and that such private sales
shall  be  deemed  to  have  been made in a commercially reasonable manner. Each
Pledgor  agrees  that  the  Pledgee  has  no  obligation  to  delay  sale of any
Collateral for the period of time necessary to permit the Issuer to register the
Collateral  for  public  sale  under  the  Securities  Act.

     10.  Proceeds  of  Sale. The proceeds of any collection, recovery, receipt,
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appropriation,  realization  or  sale  of the Collateral shall be applied by the
Pledgee  as  follows:

          (a)  First,  to  the  payment  of  all  costs, reasonable expenses and
     charges  of  the  Pledgee  and  to the reimbursement of the Pledgee for the
     prior  payment  of  such costs, reasonable expenses and charges incurred in
     connection  with  the  care  and  safekeeping of the Collateral (including,
     without  limitation,  the  reasonable  expenses  of  any  sale or any other
     disposition  of  any  of  the  Collateral),  attorneys' fees and reasonable
     expenses,  court costs, any other fees or expenses incurred or expenditures
     or  advances  made by Pledgee in the protection, enforcement or exercise of
     its  rights,  powers  or  remedies  hereunder;

          (b) Second, to the payment of the Obligations, in whole or in part, in
     such  order  as  the Pledgee may elect, whether or not such Obligations are
     then  due;

          (c)  Third,  to such persons, firms, corporations or other entities as
     required  by  applicable  law  including,  without  limitation,  Section
     9-615(a)(3)  of  the  UCC;  and

          (d) Fourth, to the extent of any surplus to the Pledgors or as a court
     of  competent  jurisdiction  may  direct.

     In  the  event  that  the  proceeds  of  any collection, recovery, receipt,
appropriation,  realization or sale are insufficient to satisfy the Obligations,
each  Pledgor  shall be jointly and severally liable for the deficiency plus the
costs  and fees of any attorneys employed by Pledgee to collect such deficiency.

     11.  Waiver  of  Marshaling. Each Pledgor hereby waives any right to compel
          ----------------------
any  marshaling  of  any  of  the  Collateral.

     12.  No  Waiver.  Any  and  all of the Pledgee's rights with respect to the
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Liens  granted under this Agreement shall continue unimpaired, and Pledgor shall
be and remain obligated in accordance with the terms hereof, notwithstanding (a)
the  bankruptcy, insolvency or reorganization of any Pledgor, (b) the release or
substitution  of  any  item  of  the Collateral at any time, or of any rights or
interests  therein,  or (c) any delay, extension of time, renewal, compromise or
other  indulgence granted by the Pledgee in reference to any of the Obligations.
Each  Pledgor  hereby  waives  all notice of any such delay, extension, release,

<PAGE>

substitution, renewal, compromise or other indulgence, and hereby consents to be
bound  hereby  as  fully and effectively as if such Pledgor had expressly agreed
thereto  in  advance. No delay or extension of time by the Pledgee in exercising
any  power of sale, option or other right or remedy hereunder, and no failure by
the Pledgee to give notice or make demand, shall constitute a waiver thereof, or
limit,  impair  or  prejudice the Pledgee's right to take any action against any
Pledgor  or  to  exercise  any other power of sale, option or any other right or
remedy.

     13.  Expenses.  The  Collateral shall secure, and each Pledgor shall pay to
          --------
Pledgee  on  demand,  from  time  to  time,  all  reasonable costs and expenses,
(including  but not limited to, reasonable attorneys' fees and costs, taxes, and
all  transfer,  recording,  filing  and other charges) of, or incidental to, the
custody,  care,  transfer,  administration  of  the  Collateral  or  any  other
collateral,  or  in  any  way  relating  to  the  enforcement,  protection  or
preservation  of  the  rights or remedies of the Pledgee under this Agreement or
with  respect  to  any  of  the  Obligations.

     14.  The Pledgee Appointed Attorney-In-Fact and Performance by the Pledgee.
          ---------------------------------------------------------------------
Upon  the  occurrence  of  an  Event of Default, each Pledgor hereby irrevocably
constitutes  and  appoints  the  Pledgee  as  such  Pledgor's  true  and  lawful
attorney-in-fact,  with  full power of substitution, to execute, acknowledge and
deliver  any  instruments and to do in such Pledgor's name, place and stead, all
such  acts,  things  and  deeds  for  and  on  behalf of and in the name of such
Pledgor,  which  such  Pledgor  could  or might do or which the Pledgee may deem
necessary, desirable or convenient to accomplish the purposes of this Agreement,
including,  without  limitation,  to  execute  such instruments of assignment or
transfer  or  orders  and to register, convey or otherwise transfer title to the
Collateral  into  the  Pledgee's name. Each Pledgor hereby ratifies and confirms
all  that  said  attorney-in-fact  may  so  do and hereby declares this power of
attorney to be coupled with an interest and irrevocable. If any Pledgor fails to
perform  any agreement herein contained, the Pledgee may itself perform or cause
performance  thereof,  and  any  costs  and  expenses of the Pledgee incurred in
connection  therewith  shall  be  paid by the Pledgors as provided in Section 10
hereof.

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

     16.  Recapture. Notwithstanding anything to the contrary in this Agreement,
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if  the  Pledgee receives any payment or payments on account of the Obligations,
which  payment  or  payments  or  any part thereof are subsequently invalidated,
declared  to  be  fraudulent  or  preferential,  set aside and/or required to be
repaid  to  a  trustee,  receiver,  or  any  other party under the United States
Bankruptcy  Code,  as  amended,  or  any  other  federal  or  state  bankruptcy,

<PAGE>

reorganization,  moratorium  or  insolvency  law  relating  to  or affecting the
enforcement  of  creditors'  rights generally, common law or equitable doctrine,
then  to  the  extent  of  any  sum  not  finally  retained by the Pledgee, each
Pledgor's  obligations  to  the  Pledgee  shall be reinstated and this Agreement
shall  remain  in  full  force and effect (or be reinstated) until payment shall
have  been  made  to  Pledgee,  which  payment  shall  be  due  on  demand.

     17.  Captions.  All  captions  in  this  Agreement  are included herein for
          --------
convenience  of  reference  only and shall not constitute part of this Agreement
for  any  other  purpose.

     18.  Miscellaneous.
          -------------

          (a)  This  Agreement  constitutes the entire and final agreement among
     the  parties  with  respect  to  the  subject  matter hereof and may not be
     changed,  terminated  or otherwise varied except by a writing duly executed
     by  the  parties  hereto.

          (b)  No  waiver of any term or condition of this Agreement, whether by
     delay,  omission  or  otherwise,  shall  be effective unless in writing and
     signed  by  the  party  sought to be charged, and then such waiver shall be
     effective  only  in  the  specific  instance  and for the purpose for which
     given.

          (c)  In  the  event  that  any  provision  of  this  Agreement  or the
     application  thereof to any Pledgor or any circumstance in any jurisdiction
     governing  this Agreement shall, to any extent, be invalid or unenforceable
     under  any  applicable  statute, regulation, or rule of law, such provision
     shall  be  deemed  inoperative to the extent that it may conflict therewith
     and shall be deemed modified to conform to such statute, regulation or rule
     of law, and the remainder of this Agreement and the application of any such
     invalid  or  unenforceable  provision  to  parties,  jurisdictions,  or
     circumstances  other  than  to  whom  or  to  which  it  is held invalid or
     unenforceable  shall  not  be  affected  thereby, nor shall same affect the
     validity  or  enforceability  of  any  other  provision  of this Agreement.

          (d)  This  Agreement  shall  be  binding  upon  each Pledgor, and each
     Pledgor's  successors  and  assigns,  and shall inure to the benefit of the
     Pledgee  and  its  successors  and  assigns.

          (e)  All  notices,  requests and demands hereunder shall be in writing
     and  shall be deemed to have been duly given or made (i) when delivered, if
     by  hand,  (ii)  three  (3)  days  after being sent, postage prepaid, if by
     registered  or  certified  mail,  (iii)  when confirmed electronically on a
     business  day,  if by facsimile, or (iv) when delivered, if by a recognized
     overnight  delivery  service,  to  the  undersigned  at  the numbers and/or
     address  set  forth  beneath  the  signature  of  the  undersigned  or  as
     subsequently  changed  by  the undersigned in a written notice delivered in
     accordance  with  this  Section  18  and  to  Laurus  at:

<PAGE>

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

                         with  a  copy  to:

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

                         and  to:

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

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

          (g)  EACH PLEDGOR HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL
     COURTS  LOCATED  IN  THE  COUNTY  OF NEW YORK, STATE OF NEW YORK SHALL HAVE
     EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN
     ANY  PLEDGOR,  ON  THE  ONE  HAND,  AND  THE  PLEDGEE,  ON  THE OTHER HAND,
     PERTAINING TO THIS AGREEMENT OR ANY OF THE OTHER DOCUMENTS OR TO ANY MATTER
     ARISING  OUT OF OR RELATED TO THIS AGREEMENT OR ANY OF THE OTHER DOCUMENTS,
     PROVIDED, THAT EACH PLEDGOR ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS
     --------
     MAY  HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK,
     STATE  OF  NEW  YORK;  AND FURTHER PROVIDED, THAT NOTHING IN THIS AGREEMENT
                                ------- --------
     SHALL  BE  DEEMED  OR OPERATE TO PRECLUDE THE PLEDGEE FROM BRINGING SUIT OR
     TAKING  OTHER  LEGAL  ACTION  IN  ANY  OTHER  JURISDICTION  TO  COLLECT THE
     INDEBTEDNESS,  TO  REALIZE  ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE
     INDEBTEDNESS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE

<PAGE>

     PLEDGEE.  EACH  PLEDGOR  EXPRESSLY  SUBMITS AND CONSENTS IN ADVANCE TO SUCH
     JURISDICTION  IN  ANY  ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH
     PLEDGOR  HEREBY  WAIVES  ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF
     PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS. EACH PLEDGOR
     HEREBY  WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS
     ISSUED  IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS,
     COMPLAINT  AND  OTHER  PROCESS  MAY BE MADE BY REGISTERED OR CERTIFIED MAIL
     ADDRESSED  TO  SUCH PLEDGOR AT THE ADDRESS SET FORTH IN SECTION 18(e) ABOVE
     AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH
     PLEDGOR'S  ACTUAL  RECEIPT  THEREOF  OR THREE (3) DAYS AFTER DEPOSIT IN THE
     U.S.  MAILS,  PROPER  POSTAGE  PREPAID.

          (h) It is understood and agreed that any person or entity that desires
     to  become  a Pledgor hereunder, or is required to execute a counterpart of
     this  Agreement  after  the date hereof pursuant to the requirements of any
     Document,  shall  become  a  Pledgor  hereunder  by (x) executing a Joinder
     Agreement in form and substance satisfactory to the Pledgee, (y) delivering
     supplements  to  such exhibits and annexes to such Documents as the Pledgee
     shall reasonably request and/or set forth in such joinder agreement and (z)
     taking  all actions as specified in this Agreement as would have been taken
     by  such  Pledgor  had it been an original party to this Agreement, in each
     case  with  all documents required above to be delivered to the Pledgee and
     with all documents and actions required above to be taken to the reasonable
     satisfaction  of  the  Pledgee.

          (i)  This  Agreement may be executed in one or more counterparts, each
     of  which  shall be deemed an original and all of which when taken together
     shall  constitute  one and the same agreement. Any signature delivered by a
     party  by  facsimile  transmission  shall  be  deemed an original signature
     hereto.

                  [Remainder of Page Intentionally Left Blank]

<PAGE>

     IN  WITNESS  WHEREOF,  the  parties  have  duly  executed this Stock Pledge
Agreement  as  of  the  day  and  year  first  written  above.

                              NEW  CENTURY  ENERGY  CORP.

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

                              Address:

                              5851  San  Felipe,  Suite  775
                              Houston,  Texas  77057
                              Facsimile:  713-255-4358

                              LAURUS  MASTER  FUND,  LTD.

                              By: /s/ Eugene Grin
                                 ----------------------------
                              Name: Eugene Grin
                                   --------------------------
                              Title: Director
                                   --------------------------

<PAGE>

<TABLE>
<CAPTION>

                                   Schedule A
                                   ----------
                                  Pledged Stock
                                  -------------

                                Class of   Stock Certificate   Par Value    Number of
Pledgor            Issuer        Stock          Number                       Shares
------------   --------------  ---------  -----------------   ----------   ---------
<S>                 <C>           <C>            <C>             <C>           <C>
New Century     Gulf Coast Oil   Common           1             $.001         1000
Energy Corp.     Corporation

</TABLE>

<PAGE>Exhibit 10.8

                  MORTGAGE, DEED OF TRUST, SECURITY AGREEMENT,
                FINANCING STATEMENT AND ASSIGNMENT OF PRODUCTION

     THIS  MORTGAGE,  DEED OF TRUST, SECURITY AGREEMENT, FINANCING STATEMENT AND
ASSIGNMENT OF PRODUCTION (this "Mortgage") is from GULF COAST OIL CORPORATION, a
Delaware  corporation  ("Gulf Coast" and sometimes "Mortgagor"), to EUGENE GRIN,
825  Third  Avenue,  New  York,  New  York 10022, as Trustee ("Trustee") for the
benefit  of  LAURUS  MASTER  FUND, LTD., a Cayman Islands company ("Mortgagee"),
dated  as  of  April  26,  2006.

                                    RECITALS

     WHEREAS,  pursuant to the terms of a Securities Purchase Agreement dated as
of  the  date hereof between Gulf Coast and Mortgagee (as amended, modified, and
supplemented  from  time  to  time, the "Securities Purchase Agreement") and the
Related Agreements defined therein, Mortgagor is required to execute and deliver
this  Mortgage  pursuant  to  which,  among other things, the Mortgaged Property
(defined  below)  is  granted  and assigned by Mortgagor to Mortgagee to further
secure  the  Secured  Indebtedness  (defined  below).

     NOW,  THEREFORE,  in  consideration of the sum of $10.00 and other good and
valuable  consideration,  in hand paid by Mortgagee, the receipt and adequacy of
which  are  hereby  acknowledged  and  confessed  by Mortgagor, Mortgagor hereby
agrees  as  follows:

                                    ARTICLE I
                                   DEFINITIONS

     1.1.  Certain  Defined Terms. For all purposes of this Mortgage, unless the
           ----------------------
context  otherwise  requires:

     "Accounts  and Contract Rights" shall mean all accounts (including accounts
in  the  form of joint interest billings under applicable operating agreements),
contract  rights and general intangibles of Mortgagor now or hereafter existing,
or  hereafter acquired by, or on behalf of, Mortgagor, or Mortgagor's successors
in  interest,  relating  to  or  arising  from  the  ownership,  operation  and
development  of  the  Mortgaged  Property  and  to  the  production, processing,
treating,  sale,  purchase,  exchange or transportation of Hydrocarbons (defined
below) produced or to be produced from or attributable to the Mortgaged Property
or any units or pooled interest units in which all or a portion of the Mortgaged
Property  forms  a  part,  together  with  all accounts and proceeds accruing to
Mortgagor  attributable  to the sale of Hydrocarbons produced from the Mortgaged
Property  or any units or pooled interest units in which all or a portion of the
Mortgaged  Property  forms  a  part.

     "Article"  shall  mean  and  refer  to  an Article of this Mortgage, unless
specifically  indicated  otherwise.

     "Code"  shall  mean  the  Uniform  Commercial Code in effect in each of the
jurisdictions  where  the  Mortgaged  Property or a portion thereof is situated.

<PAGE>

     "Credit  Agreements"  shall  mean,  collectively,  the  Securities Purchase
Agreement  and  the Related Agreements as defined therein and "Credit Agreement"
shall  mean  any  one  of  the  foregoing.

     "Effective  Date"  shall  mean  April  26,  2006.

     "Event  of Default" shall mean the occurrence of any breach by Mortgagor of
any term or provision of this Mortgage or the occurrence of any Event of Default
under  and  as  defined  in  the  applicable  Credit  Agreement.

     "Exhibit  A" shall mean, unless specifically indicated otherwise, Exhibit A
attached  hereto  and  incorporated  herein  by  reference  for  all  purposes.

     "Gas  Balancing  Agreement"  means  any  agreement  or  arrangement whereby
Mortgagor,  or  any  other  party  having  an interest in any Hydrocarbons to be
produced  from  mineral  interests  in  which Mortgagor owns an interest, have a
right  or  an  obligation  to  take more or less than its proportionate share of
production  therefrom.

     "Guaranties"  shall  mean, collectively, each Guaranty dated as of the date
hereof  executed  by  any Mortgagor in favor of Mortgagee pursuant to which such
Mortgagor  guaranteed  all  debts,  liabilities  and  obligations of New Century
Energy Corp. to Mortgagee, as the same may be amended, modified and supplemented
from  time  to  time.

     "Guaranty  Agreements" shall mean, collectively, the Guaranties and all the
other documents, instruments and agreements executed in connection therewith, as
each  of  the  same may be amended, modified and supplemented from time to time.

     "Guaranty  Obligations" shall mean all present and future indebtednesses of
each  Mortgagor  arising  pursuant  to  any  Guaranty  Agreement.

     "Hydrocarbons"  shall  mean  oil, gas, coalbed methane gas, casinghead gas,
drip  gasolines,  natural  gasoline,  condensate,  distillate,  as-extracted
collateral  and  all  other  liquid  or  gaseous  hydrocarbons produced or to be
produced  in  conjunction  therewith, and all products, byproducts and all other
substances  derived  therefrom or the processing thereof, and all other minerals
and  substances, including, but not limited to, sulphur, lignite, coal, uranium,
thorium,  iron,  geothermal steam, water, carbon dioxide, helium and any and all
other  minerals,  ores,  or  substances  of  value and the products and proceeds
therefrom,  including,  without  limitation,  all gas resulting from the in-situ
combustion  of  coal  or  lignite.

     "Lands"  shall  mean  the  lands  described in Exhibit A, shall include any
lands  the  description  of  which  is incorporated in Exhibit A by reference to
another  instrument  or  document,  including,  without  limitation,  all  lands
described  in  the Oil and Gas Leases listed on Exhibit A hereto, and shall also
include  any  lands  now  or  hereafter  unitized,  pooled,  spaced or otherwise
combined,  whether  by statute, order, agreement, declaration or otherwise, with
lands  the  description of which is contained in Exhibit A or is incorporated in
Exhibit  A  by  reference.

     "Lien" shall mean any mortgage, deed of trust, collateral assignment, lien,
pledge,  charge,  security  interest  or  other  encumbrance.

<PAGE>

     "Loans"  shall  mean collectively, all amounts advanced by the Mortgagee to
Mortgagor  under  the  Note  and  the  Credit  Agreements.

     "Material  Adverse  Effect" shall mean a material adverse effect on (a) the
assets,  liabilities, financial condition, results of operations or prospects of
Mortgagor, (b) the right or ability of Mortgagor to fully, completely and timely
perform  their  obligations  under the Credit Agreements, or (c) the validity or
enforceability  of  any  Credit  Agreement  against  Mortgagor, or the rights or
remedies  of  Mortgagee  thereunder.

     "Mortgaged  Property"  shall  have  the meaning stated in Article 2 of this
Mortgage.

     "Net  Revenue  Interest"  shall  mean Mortgagor's share of all Hydrocarbons
produced  from  the Lands, after deducting the appropriate proportionate part of
all  lessors'  royalties,  overriding  royalties,  production payments and other
payments  out of or measured by production which burden Mortgagor's share of all
such  production, subject to non-consent provisions contained in joint operating
agreements.

     "Note"  shall  have  the  meaning  set  forth  in  the  Credit  Agreements.

     "Obligations"  shall  mean all present and future indebtedness, obligations
and  liabilities  (including, without limitation, all Guaranty Obligations), and
all  renewals,  refinancings  and  extensions  thereof,  or any part thereof, of
Mortgagor  to  Mortgagee  arising  pursuant  to any of the Credit Agreements, or
arising  pursuant  to  any  commodity,  interest  rate,  currency or other swap,
option,  collar,  futures  contract or other contract pursuant to which a Person
hedges  risks  related  to  commodity  prices, interest rates, currency exchange
rates,  securities prices or financial market conditions and any other commodity
price hedging agreements by and between Mortgagor and Mortgagee and all interest
accrued  on any of the foregoing, and reasonable costs, expenses, and attorneys'
fees  incurred  in  the enforcement or collection thereof, regardless of whether
such  indebtedness,  obligations  and  liabilities  are direct, indirect, fixed,
contingent,  liquidated,  unliquidated,  joint,  several  or  joint and several.

     "Oil  and  Gas  Leases" shall mean oil, gas and mineral leases, oil and gas
leases, oil leases, gas leases, other mineral leases, subleases, top leases, any
rights  resulting  in  an  ownership  interest in Hydrocarbons and all operating
rights  relating  to  any  of  the foregoing (whether operated by virtue of such
leases,  or  assignments  or  applicable  operating  agreements)  and  all other
interests pertaining to any of the foregoing, including, without limitation, all
royalty  and  overriding  royalty  interests, production payments and net profit
interests,  mineral  fee interests, and all reversionary, remainder, carried and
contingent  interests  relating  to  any  of  the foregoing and all other rights
therein  which are described and/or to which reference may be made on Exhibit A.

     "Operating Equipment" shall mean all Personal Property and fixtures affixed
or  situated  upon all or any part of the Mortgaged Property, including, without
limitation,  all surface or subsurface machinery, equipment, facilities or other
property  of  whatsoever  kind  or nature now or hereafter located on any of the
Lands  which are useful for the production, treatment, storage or transportation
of  oil  or  gas,  including,  but  not by way of limitation, all oil wells, gas
wells,  water  wells,  injection  wells, casing, tubing, rods, pumping units and

<PAGE>

engines,  Christmas trees, derricks, separators, gun barrels, flow lines, tanks,
gas  systems  (for  gathering,  treating  and  compression),  water systems (for
treating,  disposal  and  injection),  power plants, poles, lines, transformers,
starters  and  controllers,  machine  shops,  tools, storage yards and equipment
stored  therein,  buildings  and  camps,  telegraph,  telephone  and  other
communication  systems,  roads,  loading  racks  and  shipping  facilities.

     "Permitted Encumbrances" shall mean with respect to the Mortgaged Property:

          (a)  Liens  securing  the  obligations;

          (b)  minor  defects  in title which do not secure the payment of money
     and  otherwise have no material adverse effect on the value or operation of
     the  subject  property,  including,  without  limitation,  easements,
     rights-of-way,  servitudes,  permits,  surface  leases,  and  other similar
     rights  in  respect  of  surface  operations,  and easements for pipelines,
     streets, alleys, highways, telephone lines, power lines, railways and other
     easements  and  rights-of-way,  on,  over  or  in  respect  of  any  of the
     properties  of  Mortgagor  that  are customarily granted in the oil and gas
     industry;

          (c)  inchoate  statutory  or operators' Liens securing obligations for
     labor,  services,  materials  and  supplies furnished for operations on the
     Lands,  which  are  not  more  than  60  days  delinquent;

          (d)  mechanic's,  materialman's,  warehouseman's,  journeyman's  and
     carrier's Liens, and other similar Liens arising by operation of law in the
     ordinary  course  of business, securing obligations which are not more than
     60  days  delinquent;

          (e)  Liens for taxes or assessments not yet due or not yet delinquent,
     or,  if  delinquent,  that  are being contested in good faith in the normal
     course  of  business  by  appropriate  action;

          (f)  lease  burdens payable to third parties which are deducted in the
     calculation  of discounted present value in any reserve report delivered by
     Mortgagor pursuant to the Credit Agreements, including, without limitation,
     any  royalty, overriding royalty, net profits interest, production payment,
     carried  interest  or  reversionary  working  interest;  and

          (g)  Liens,  charges  and  encumbrances upon Mortgagor's assets, other
     than  Proved  Mineral Interests, which in the aggregate do not have a value
     in  excess  of  $50,000.

     "Person"  shall  mean  any  individual,  corporation,  partnership, limited
liability  company,  association,  trust,  other  entity or organization, or any
court  or  governmental  department,  commission,  board,  bureau,  agency,  or
instrumentality  of  any nation or of any province, state, commonwealth, nation,
territory, possession, county, parish, or municipality, whether now or hereafter
constituted  or  existing.

     "Personal  Property" shall mean that portion of the Mortgaged Property that
is  personal  property.

<PAGE>

     "Proved  Mineral  Interests"  shall  mean,  collectively,  Proved Producing
Mineral Interests, Proved Nonproducing Mineral Interests, and Proved Undeveloped
Mineral  Interests.

     "Proved  Nonproducing  Mineral  Interests" shall mean all Subject Interests
which  constitute  proved  developed  nonproducing  reserves.

     "Proved Producing Mineral Interests" shall mean all Subject Interests which
constitute  proved  developed  producing  reserves.

     "Proved  Undeveloped  Mineral  Interests"  shall mean all Subject Interests
which  constitute  proved  undeveloped  reserves.

     "Section"  shall  mean  and  refer  to  a  section of this Mortgage, unless
specifically  indicated  otherwise.

     "Secured  Indebtedness"  shall have the meaning stated in Article 3 of this
Mortgage.

     "Subject  Interests"  shall  have  the  meaning stated in Article 2 of this
Mortgage.

     "Subsidiary" shall mean, for any Person, any corporation or other entity of
which  securities  or  other ownership interests having ordinary voting power to
elect  a  majority of the board of directors or other persons performing similar
functions  (including  that  of  a  general partner) are at the time directly or
indirectly  owned,  collectively,  by  such  Person and any Subsidiaries of such
Person.  "Subsidiary"  shall  include  Subsidiaries of Subsidiaries (and so on).

     "Well  Data"  shall  mean  all  logs,  drilling  reports,  division orders,
transfer  orders,  operating  agreements,  contracts  and  other  agreements,
abstracts,  title  opinions,  files,  records, seismic data, memoranda and other
information  in the possession or control of Mortgagor or to which Mortgagor has
access  relating  to  the  Lands  and/or  any  wells  located  thereon.

     1.2.  Other  Terms. Unless otherwise defined or indicated herein, all terms
           ------------
with their initial letter capitalized shall have the meaning given such terms in
the  Revolving  Credit  Agreement.

                                   ARTICLE II
                       GRANTING CLAUSE: MORTGAGED PROPERTY

     Mortgagor, for and in consideration of the sum of $10.00 and other good and
valuable  consideration,  in hand paid by Mortgagee, the receipt and adequacy of
which  are  hereby  acknowledged  and  confessed  by  Mortgagor,  and for and in
consideration of the debt and purposes hereinafter set forth, to secure the full
and  complete  payment and performance of the Secured Indebtedness and to secure
the  performance  of  the covenants, obligations, agreements and undertakings of
Mortgagor  hereinafter described, have GRANTED, BARGAINED, WARRANTED, MORTGAGED,
ASSIGNED,  TRANSFERRED  and  CONVEYED,  and by these presents do GRANT, BARGAIN,
WARRANT,  MORTGAGE,  ASSIGN,  TRANSFER  and  CONVEY  unto  Trustee and Trustee's

<PAGE>

substitutes  or successors, and his and their assigns, for the uses and purposes
herein  set  forth,  with  warranties  and covenants of title only to the extent
provided  herein  and  in the Credit Agreements, all of Mortgagor's right, title
and interest, whether now owned or hereafter acquired, in all of the hereinafter
described  properties,  rights  and  interests; and, insofar as such properties,
rights  and  interests  consist  of  equipment,  general  intangibles, accounts,
contract rights, inventory, goods, chattel paper, instruments, documents, money,
fixtures,  as  extracted  collateral, proceeds and products of collateral or any
other  Personal  Property  of  a  kind or character defined in or subject to the
applicable  provisions  of  the  Code,  Mortgagor  hereby  grants to Mortgagee a
security  interest  therein,  whether  now  owned or hereafter acquired, namely:

          (a)  all  of  those certain Oil and Gas Leases and Lands (all such Oil
     and  Gas  Leases  and Lands being herein called the "Subject Interests," as
     hereinafter  further  defined)  which  are described in Exhibit A and/or to
     which reference may be made in Exhibit A and/or which are covered by any of
     the  leases  described on Exhibit A, which Exhibit A is made a part of this
     Mortgage for all purposes, and is incorporated herein by reference as fully
     as  if  copied  at  length  in  the  body  of  this Mortgage at this point;

          (b)  all  rights, titles, interests and estates now owned or hereafter
     acquired by Mortgagor in and to (i) any and all properties now or hereafter
     pooled  or  unitized  with  any  of  the  Subject  Interests,  and (ii) all
     presently  existing  or  future  operating  agreements  and  unitization,
     communitization  and  pooling  agreements and the units operated thereby to
     the  extent  the  same  relate to all or any part of the Subject Interests,
     including,  without  limitation,  all units formed under or pursuant to any
     applicable  laws  (the  rights,  titles, interests and estates described in
     this  clause (b) also being included within the term "Subject Interests" as
     used  herein);

          (c)  all presently existing and future agreements entered into between
     Mortgagor and any third party that provide for the acquisition by Mortgagor
     of  any  interest  in  any  of  the  properties  or  interests specifically
     described  in  Exhibit  A  or  which  relate  to  any of the properties and
     interests  specifically  described  in  Exhibit  A;

          (d)  the Hydrocarbons (including inventory) which are in, under, upon,
     produced or to be produced from or attributable to the Lands from and after
     the  Effective  Date;

          (e)  the  Accounts  and  Contract  Rights;

          (f)  the  Operating  Equipment;

          (g)  the  Well  Data;

          (h)  the  rights and security interests of Mortgagor held by Mortgagor
     to  secure  the obligation of the first purchaser to pay the purchase price
     of  the  Hydrocarbons;

          (i)  all  surface  leases,  rights-of-way,  franchises,  easements,
     servitudes,  licenses,  privileges,  tenements,  hereditaments  and
     appurtenances now existing or in the future obtained in connection with any
     of  the  aforesaid, and all other items of value and incident thereto which
     Mortgagor  may,  at  any  time,  have  or  be  entitled;  and

          (j)  all  and  any  different  and additional rights of any nature, of
     value  or  convenience  in  the  enjoyment,  development,  operation  or
     production,  in any way, of any property or interest included in any of the
     foregoing  clauses, and in all revenues, income, rents, issues, profits and

<PAGE>

     other  benefits  arising therefrom or from any contract now in existence or
     hereafter  entered  into  pertaining  thereto, and in all rights and claims
     accrued  or  to  accrue  for the removal by anyone of Hydrocarbons from, or
     other  act  causing  damage  to,  any  of  such  properties  or  interests.

     All  the  aforesaid properties, rights and interests, together with any and
all substitutions, replacements, corrections or amendments thereto, or renewals,
extensions  or ratifications thereof, or of any instrument relating thereto, and
together  with  any additions thereto which may be subjected to the Lien of this
Mortgage by means of supplements hereto, being hereinafter called the "Mortgaged
Property".

     Subject,  however,  to  (i)  Permitted Encumbrances, and (ii) the condition
that  Mortgagee  shall  not  be liable in any respect for the performance of any
covenant  or  obligation  of  Mortgagor  with respect to the Mortgaged Property.

     TO  HAVE  AND  TO  HOLD  the  Mortgaged  Property  unto  Mortgagee  and its
successors,  legal  representatives and assigns, forever, subject to Section 7.3
hereof,  to  secure,  in  each such instance, the payment and performance of the
Secured  Indebtedness  and  the  Obligations.

                                   ARTICLE III
                              SECURED INDEBTEDNESS

     This Mortgage is given to secure the Loans and all of the Obligations under
and  as  described  in  the  Credit  Agreements  and  the  Guaranty  Agreements,
including,  without  limitation:

          (a)  interest on all credit outstanding under the Credit Agreements at
     the  rates  provided  in  the  Credit  Agreements;

          (b)  the  Obligations, including, without limitation, the indebtedness
     evidenced  by  the  Note;

          (c)  payment  and  performance  of  any  and  all  present  and future
     obligations  of  Mortgagor  according to the terms of any present or future
     hedge  transaction,  including,  without  limitation, any present or future
     swap  agreements,  cap,  floor,  collar,  exchange  transaction,  forward
     agreement  or  other exchange or protection agreements relating to any such
     transaction  now  existing  or hereafter entered into between Mortgagor and
     Mortgagee;

          (d)  any  sums advanced as expenses or costs incurred by, or on behalf
     of,  Mortgagee  which  are  made  or incurred pursuant to the terms of this
     Mortgage  or  any  Credit  Agreement, plus interest thereon at the rate set
     forth  in  Section 1.1 of the Note, as applicable, from the date of advance
     or  expenditure  until  reimbursed;  and

          (e)  all  other  and  additional debts, obligations and liabilities of
     every  kind and character of Mortgagor now existing or hereafter arising in
     connection  with  any  of  the  Credit  Agreements or otherwise (all of the
     obligations  and  indebtedness  referred  to  in  this  Article  3, and all
     renewals,  refinancings,  extensions  and  modifications  thereof,  and all
     substitutions  therefor, in whole or in part, are herein sometimes referred
     to  as  the  "Secured  Indebtedness").

<PAGE>

                                   ARTICLE IV
                     COVENANTS, REPRESENTATIONS, WARRANTIES
                           AND AGREEMENTS OF MORTGAGOR

     Mortgagor  hereby  covenants,  represents,  warrants  and  agrees  that:

     4.1.  Payment  of  Indebtedness.  Mortgagor will duly and punctually pay or
           -------------------------
cause  to  be  paid  when  due  all  of  the  Secured  Indebtedness.

     4.2. Warranties. (a) Mortgagor, to the extent of the interests specified in
          ----------
Exhibit  A, has good and defensible title, subject to Permitted Encumbrances, to
each  property  right or interest constituting the Mortgaged Property, and has a
good and legal right to make the grant and conveyance made in this Mortgage; (b)
Mortgagor's  present  Net Revenue Interest in the Mortgaged Property is not less
than  that  specified in Exhibit A and if no interest is specified, includes all
its  interests  however  specified  in  and  to the Oil and Gas Leases and Lands
described  on  Exhibit  A; and (c) the Mortgaged Property is free from all Liens
other  than  Permitted  Encumbrances.  Mortgagor will warrant and forever defend
(subject to those Permitted Encumbrances described in clauses (b) and (f) of the
definition  of  "Permitted Encumbrances" set forth above) the Mortgaged Property
unto  Mortgagee  and  Mortgagee's successors, legal representatives and assigns,
and Trustee and Trustee's successors, legal representatives and assigns, against
every  Person  whomsoever  lawfully  claiming  the same or any part thereof, and
Mortgagor  will  maintain and preserve the Lien hereby created so long as any of
the  Secured  Indebtedness  remains  unpaid, except where such failure to comply
would  not  have  a  Material  Adverse  Effect.

     4.3.  Further Assurances. Mortgagor will execute and deliver such other and
           ------------------
further instruments and will do such other and further acts as in the reasonable
discretion  of  Mortgagee  may  be  necessary  or  desirable  to  carry out more
effectively  the  purposes  of  this  Mortgage,  including, without limiting the
generality  of the foregoing, (a) prompt correction of any material defect which
may  hereafter  be  discovered  in the title to the Mortgaged Property or in the
execution  and acknowledgment of this Mortgage, any Notes, or any other document
used  in connection herewith or at any time delivered to Mortgagee in connection
with  any  Obligations,  and  (b)  if  required  by  Section  8.1 hereof, prompt
execution and delivery of all division or transfer orders that in the reasonable
discretion of Mortgagee are needed to transfer effectively the assigned proceeds
of  production  from  the  Mortgaged  Property  to  Mortgagee.

     4.4.  Taxes.  To  the  extent  and  in  the  manner  required by the Credit
           -----
Agreements,  and  to the extent not prohibited by applicable law, Mortgagor will
promptly  pay, or cause to be paid, all taxes legally imposed upon this Mortgage
or  upon  the  Mortgaged  Property or upon the interest of Mortgagee therein, or
upon  the  income,  profits,  proceeds  and  other  revenues  thereof.

     4.5.  Operation  of  the  Mortgaged  Property.  So  long  as  the  Secured
           ---------------------------------------
Indebtedness  or  any  part  thereof  remains  unpaid:

          (a)  Mortgagor  shall  observe  and  comply  with all of the terms and
     provisions,  express  or implied, of all Oil and Gas Leases relating to the

<PAGE>

     Subject  Interests  so  long  as  such  Oil  and  Gas Leases are capable of
     producing  Hydrocarbons  in paying quantities, except where such failure to
     comply  would  not  have  a  Material  Adverse  Effect;

          (b)  Mortgagor  shall  comply  with  all  contracts  and  agreements
     applicable  to  or relating to the Mortgaged Property or the production and
     sale of Hydrocarbons therefrom, except to the extent a failure to so comply
     would  not  have  a  Material  Adverse  Effect;

          (c)  Mortgagor shall, at all times, take reasonable steps to maintain,
     preserve  and  keep  all  Operating  Equipment  used  with  respect  to the
     Mortgaged  Property in proper repair, working order and condition, and make
     all necessary or appropriate repairs, renewals, replacements, additions and
     improvements  thereto  so  that  the efficiency of such Operating Equipment
     shall  at all times be properly preserved and maintained, except where such
     failure  to  comply would not have a Material Adverse Effect; provided that
     no  item  of  Operating  Equipment  need be so repaired, renewed, replaced,
     added  to or improved, if Mortgagor shall in good faith determine that such
     action  is  not  necessary  or  desirable  for  the continued efficient and
     profitable  operation  of  the  Subject  Interests;

          (d)  Mortgagor  shall cause the Mortgaged Property to be kept free and
     clear  of  all  Liens  other  than  Permitted  Encumbrances;

          (e)  Mortgagor  shall  comply  with the terms of the Credit Agreements
     with  respect  to  maintenance  of  insurance.  All loss payable clauses or
     provisions  in  said  policy  or policies shall be endorsed in favor of and
     made payable to Mortgagee, as its interest may appear. Mortgagee shall have
     the  right  to  collect, and Mortgagor hereby assigns to Mortgagee, any and
     all  monies that may become payable under any such policies of insurance by
     reason of damage, loss or destruction of any of the Mortgaged Property, and
     Mortgagee may, at its election, either apply all or any part of the sums so
     collected  toward  payment of the Secured Indebtedness, whether or not such
     Secured  Indebtedness,  or any portion thereof, is then due and payable, in
     such  manner  as  Mortgagee  may  elect,  or release same to Mortgagor; and

          (f)  Mortgagor  shall  not sell, lease, transfer, abandon or otherwise
     dispose  of  any  portion  of  the Mortgaged Property or any of Mortgagor's
     rights,  titles  or  interests  therein  or thereto, except as specifically
     permitted  in  the  Credit  Agreements.

     4.6.  Recording.  Mortgagor  will promptly and at Mortgagor's sole cost and
           ---------
expense,  record,  register,  deposit  and  file  this  Mortgage and every other
instrument  in addition or supplemental hereto in such offices and places and at
such  times  and as often as may be necessary to preserve, protect and renew the
Lien  hereof  as  a perfected Lien on real or personal property, as the case may
be,  subject  only  to  Permitted  Encumbrances,  and the rights and remedies of
Mortgagee,  and otherwise will do and perform all matters or things necessary or
expedient to be done or observed by reason of any law or regulation of any state
or  of the United States or of any other competent authority, for the purpose of
effectively  operating,  maintaining  and  preserving  the  Lien  hereof  on the
Mortgaged  Property.

     4.7.  Records,  Statements and Reports. Mortgagor will keep proper books of
           --------------------------------
record  and  account  in  which  complete  and  correct  entries will be made of
Mortgagor's  transactions  in  accordance  with  sound  accounting  principles,
consistently  applied and will, to the extent required by the Credit Agreements,

<PAGE>

furnish or cause to be furnished to Mortgagee (a) all reports required under the
Credit  Agreements,  and  (b) such other information concerning the business and
affairs and financial condition of Mortgagor as Mortgagee may, from time to time
reasonably  request.

     4.8.  No  Government  Approvals.  Mortgagor  warrants  that  no approval or
           -------------------------
consent  of  any  Person is necessary to authorize the execution and delivery of
this  Mortgage,  or  any  of  the  other  Credit  Agreements  or the Note, or to
authorize  the observance or performance by Mortgagor of the covenants herein or
therein  contained.

     4.9.  Right  of  Entry.  Mortgagor  will permit Mortgagee, or the agents or
           ----------------
designated  representatives  of Mortgagee, to enter upon the Mortgaged Property,
and  all  parts  thereof,  for  the purposes of investigating and inspecting the
condition  and  operation  thereof.

     The  representations  and  warranties set forth in the Credit Agreement are
incorporated  herein  by  reference  as  if  set  forth  herein,  and  each such
representation  and  warranty  is  true  and  correct.

                                    ARTICLE V
                         ADDITIONS TO MORTGAGED PROPERTY

     It  is  understood  and  agreed  that  Mortgagor  may  periodically subject
additional properties to the Lien of this Mortgage. In the event that additional
properties  are  to be subjected to the Lien hereof, the parties hereto agree to
execute  a  supplemental  mortgage,  satisfactory  in  form  and  substance  to
Mortgagee,  together  with  any security agreement, financing statement or other
security  instrument  required  by  Mortgagee,  all  in  form  and  substance
satisfactory  to  Mortgagee  and  in a sufficient number of executed (and, where
necessary  or  appropriate,  acknowledged)  counterparts for recording purposes.
Upon  execution of such supplemental mortgage, all additional properties thereby
subjected  to  the  Lien  of  this  Mortgage  shall become part of the Mortgaged
Property  for  all  purposes.

                                   ARTICLE VI
                           ENFORCEMENT OF THE SECURITY

     6.1. General Remedies. Upon the occurrence and during the continuance of an
          ----------------
Event  of Default, Mortgagee may perform or direct Trustee to perform any one or
more  of  the  following  acts, subject to and in accordance with any applicable
provision  of  the  Credit  Agreements  and  to  any  mandatory  requirements or
limitations  of  applicable  law  then  in  force:

          (a)  exercise  all  of  the rights, remedies, powers and privileges of
     Mortgagor  with respect to the Mortgaged Property or any part thereof, give
     or  withhold  all  consents  required  therein  which,  with respect to the
     Mortgaged  Property  or  any  part  thereof,  Mortgagor  would otherwise be
     entitled  to  give  or  withhold  and  perform  or  attempt  to perform any
     covenants  in  this  Mortgage  which  Mortgagor  is  obligated  to perform;
     provided  that  no  payment  or performance by Mortgagee shall constitute a
     waiver  of  any  Event  of Default and Mortgagee shall be subrogated to all
     rights and Liens securing the payment of any debt, claim, tax or assessment
     for  the  payment of which Mortgagee may make an advance or which Mortgagee
     may  pay.

<PAGE>

          (b) execute and deliver to such Person or Persons as may be designated
     by  Mortgagee  appropriate  powers  of attorney to act for and on behalf of
     Mortgagor  in all transactions with any federal, state or local agency with
     respect  to  any  of  the  Mortgaged  Property.

          (c) exercise any and all other rights or remedies granted to Mortgagee
     pursuant  to  the provisions of any of the Credit Agreements and applicable
     law.

          (d) if Mortgagor has failed to keep or perform any covenant whatsoever
     contained  in  any Credit Agreement or this Mortgage, Mortgagee may, at its
     option,  perform  or  attempt to perform such covenant. Any payment made or
     expense  incurred  in  the performance or attempted performance of any such
     covenant  shall  be  a  part  of  the  Secured  Indebtedness, and Mortgagor
     promises,  upon demand, to pay to Mortgagee, at the place where the Note is
     payable,  or at such other place as Mortgagee may direct by written notice,
     all  sums  so  advanced or paid by Mortgagee, with interest at the rate set
     forth  in  Section  2.2  of the Note from the date when paid or incurred by
     Mortgagee.  No  such  payment by Mortgagee shall constitute a waiver of any
     Event  of  Default.

          (e) Mortgagee may, at its option, without notice, demand, presentment,
     notice  of  intent  to accelerate or of acceleration, or notice of protest,
     all  of  which are hereby expressly waived by Mortgagor, declare the entire
     unpaid  balance  of  the  Secured  Indebtedness,  or  any  part  thereof,
     immediately  due  and  payable,  and  upon  such  declaration  it  shall be
     immediately  due and payable, and the Liens hereof shall then be subject to
     foreclosure  in  accordance  with  applicable  law.

          (f)  Upon  the occurrence of an Event of Default, this Mortgage may be
     foreclosed  as  to  the  Mortgaged  Properties, or any part thereof, in any
     manner  permitted  by  applicable  law.

     Mortgagee  may  request  Trustee  to,  and  in such event Trustee is hereby
authorized  and  empowered  and  it  shall  be his or her special duty upon such
request of Mortgagee and to the extent permitted by applicable law, proceed with
foreclosure  and  sell  all or any part of the Mortgaged Property at one or more
sales,  as  an  entirety or in parcels, at such place or places and otherwise in
such manner and upon such notice as may be required by applicable law or, in the
absence  of  any such requirement, as Trustee or Mortgagee may deem appropriate,
and  to  make  conveyance  to the purchaser or purchasers thereof. Any such sale
shall  be made to the highest bidder or bidders for cash, at the courthouse door
of  the county wherein the Mortgaged Property is situated; provided that, if the
Mortgaged  Property  is  situated  in  more  than  one  county, such sale of the
Mortgaged  Property, or part thereof, may be made in any county wherein any part
of the Mortgaged Property is situated. Such sale shall be made at public outcry,
on the day of any month, during the hours of such day, and after written notices
thereof  have  been publicly posted in such places and for such time periods and
all  Persons  entitled  to  notice  thereof  have  been sent such notice, all as
required  by  applicable law. If the applicable law in force as of the Effective
Date  hereof  should  hereafter be amended to require a different notice of sale
applicable  to  sales  of property of the nature of the Mortgaged Property under
powers  of sale conferred by mortgages or deeds of trust, Trustee may, in his or
her  sole discretion, to the extent permitted by applicable law, give either the
notice of sale required by applicable law in effect on the Effective Date or the

<PAGE>

notice of sale prescribed by the amended law; and nothing herein shall be deemed
to  require  Mortgagee  or Trustee to do, and Mortgagee and Trustee shall not be
required  to  do,  any act other than as required by applicable law in effect at
the  time of any such sale. After such sale, Trustee shall make to the purchaser
or purchasers thereunder good and sufficient deeds, assignments or bills of sale
in  the  name of Mortgagor, conveying or transferring the Mortgaged Property, or
any  part  thereof,  so  sold  to  the  purchaser  or purchasers containing such
warranties  of title as are customarily given, which warranties shall be binding
upon  Mortgagor.

     Sale  of  a  part  of the Mortgaged Property shall not exhaust the power of
sale  granted  hereby, but sales may be made from time to time until the Secured
Indebtedness  is  paid  and performed in full. It shall not be necessary to have
present or to exhibit at any such sale any of the Personal Property. In addition
to the rights and other powers of sale granted under the preceding provisions of
this Section 6.1(f), if default is made in the payment of any installment of the
Obligations,  Mortgagee  may,  at  its option, at once or at any time thereafter
while  any  matured  installment  remains  unpaid,  without declaring the entire
Secured  Indebtedness  to  be  due and payable, orally or in writing, enforce or
direct  Trustee  to enforce (as provided by applicable law) the Liens created by
this  Mortgage  and  sell  the  Mortgaged  Property  subject  to  such  matured
indebtedness and the Liens securing its payment, in the same manner, on the same
terms,  at  the  same  place  and time and after having given notice in the same
manner,  all  as  provided  in  the preceding provisions of this Section 6.1(f).
After such sale, Mortgagee or Trustee (as provided by applicable law) shall make
due  conveyance  to the purchaser or purchasers. Sales made without maturing the
Secured  Indebtedness  may  be made hereunder whenever there is a default in the
payment  of  any  installment of the Secured Indebtedness without exhausting the
power  of sale granted hereby and without affecting in any way the power of sale
granted  under  this  Section  6.1(f),  the  unmatured  balance  of  the Secured
Indebtedness (except as to any proceeds of any sale which Mortgagee may apply as
prepayment  of  the  Secured Indebtedness), or the Liens securing payment of the
Secured  Indebtedness. The sale or sales of less than the whole of the Mortgaged
Property  shall  not  exhaust the power of sale herein granted, and Mortgagee or
Trustee  (as  provided  by  applicable  law)  is  specifically empowered to make
successive  sale  or  sales  under  such  power until the whole of the Mortgaged
Property  shall  be  sold. It is intended by each of the foregoing provisions of
this  Section  6.1(f)  that  Trustee  may,  after  any  request  or direction by
Mortgagee,  sell  not  only  the  Subject  Interests  but  also  all other items
constituting  a part of the Mortgaged Property along with the Subject Interests,

<PAGE>

or  any  part thereof, all as a unit and as a part of a single sale, or may sell
any  part  of  the  Mortgaged  Property  separately  from  the  remainder of the
Mortgaged Property. If the proceeds of such sale or sales of less than the whole
of  such  Mortgaged  Property  shall  be  less than the aggregate of the Secured
Indebtedness  and  the  expense of enforcing the trust created by this Mortgage,
the  Liens  of  this  Mortgage  shall  remain in full force and effect as to the
unsold  portion of the Mortgaged Property just as though no sale or sale of less
than  the whole of the Mortgaged Property had occurred, but Mortgagee shall have
the  right, at its sole election, to request Trustee to sell less than the whole
of the Mortgaged Property. In the event any questions should be raised as to the
regularity  or validity of any sale hereunder, Mortgagee or Trustee (as provided
by  applicable law) shall have the right and is hereby authorized to make resale
of  said property so as to remove any questions or doubt as to the regularity or
validity  of  the  previous  sale,  and  as  many  resales may be made as may be
appropriate.  It  is  agreed  that,  in  any deed or deeds given by Mortgagee or
Trustee (as provided by applicable law), any and all statements of fact or other
recitals  therein  made as to the identity of Mortgagee, or as to the occurrence
or  existence  of  any Event of Default, or as to the request to sell, notice of
sale,  time,  place,  terms,  and manner of sale, and receipt, distribution, and
application  of  the  money  realized  therefrom,  or  as  to the due and proper
appointment  of  a  substitute  trustee,  and,  without  being  limited  by  the
foregoing, as to any other act or thing having been duly done by Mortgagee or by
Trustee  shall  be  taken  by any Governmental Authority as prima facie evidence
that  the  said  statements  or  recitals  are  true and correct and are without
further question to be so accepted, and Mortgagor does hereby ratify and confirm
any  and  all  acts that Trustee or Mortgagee may lawfully do in the premises by
virtue  hereof.  In  the event of the resignation or death of Trustee, or his or
her  failure, refusal, or inability, for any reason, to make any such sale or to
perform  any  of  the  trusts  herein  declared, or, at the option of Mortgagee,
without  cause,  Mortgagee  may  appoint  at  its sole discretion, in writing, a
substitute  trustee,  who  shall  thereupon  succeed to all the estates, titles,
rights, powers, and trusts herein granted to and vested in Trustee. If Mortgagee
is a national banking association or a corporation, such appointment may be made
on  behalf  of  such  Mortgagee  by any Person who is then the president, or any
vice-president,  or the cashier or secretary, or any other authorized officer or
agent  of  Mortgagee.  In  the  event  of  the  resignation or death of any such
substitute  trustee,  or  his or her failure, refusal, or inability to make such
sale  or  perform  such  trusts,  or, at the option of Mortgagee, without cause,
Mortgagee  may  appoint  successive substitute trustees from time to time in the
same manner. Wherever herein the word "Trustee" is used, the same shall mean the
Person  who is the duly appointed Trustee or substitute trustee hereunder at the
time  in  question.

          (g)  Mortgagee  may, or Trustee may upon written request of Mortgagee,
     in  lieu  of or in addition to exercising the power of sale provided for in
     Section  6.1(f)  hereof,  proceed by suit or suits, at law or in equity, to
     enforce  the  payment  and  performance  of  the  Secured  Indebtedness  in
     accordance  with  the  terms hereof and of the Credit Agreements evidencing
     it,  to  foreclose the Liens of this Mortgage as against all or any part of
     the  Mortgaged  Property,  and  to  have  all  or any part of the Mortgaged
     Property  sold  under  the  judgment  or  decree  of  a  court of competent
     jurisdiction.

          (h)  To  the  extent  permitted  by  law, upon the acceleration of the
     Secured Indebtedness, Mortgagee, as a matter of right and without regard to
     the  sufficiency  of  the  Mortgaged  Property,  and without any showing of
     insolvency,  fraud  or  mismanagement on the part of Mortgagor, and without
     the  necessity  of  filing  any judicial or other proceeding other than the
     proceeding  for  appointment  of  a  receiver,  shall  be  entitled  to the
     appointment  of  a  receiver or receivers of the Mortgaged Property, or any
     part  thereof,  and of the income, royalties, revenues, bonuses, production
     payments,  delay  rentals,  benefits,  rents,  issues  and profits thereof.
     Mortgagor  hereby consents to the appointment of such receiver or receivers
     and  agrees not to oppose any application therefor by Trustee or Mortgagee.

          (i)  Upon  the acceleration of the Secured Indebtedness, Mortgagee may
     (without  notification,  if  permitted  by  applicable  law) enter upon the
     Mortgaged  Property,  take  possession of the Mortgaged Property and remove
     the Personal Property or any part thereof, with or without judicial process
     and,  in  connection  therewith, without any responsibility or liability on
     the part of Mortgagee, take possession of any property located on or in the
     Mortgaged  Property  which is not a part of the Mortgaged Property and hold
     or  store  such property at Mortgagor's expense. If necessary to obtain the
     possession  provided  for in this Section 6.1 (i), Mortgagee or Trustee may
     undertake  any  and  all  remedies  to  dispossess  Mortgagor,  including,
     specifically, one or more actions for forcible entry and detainer, trespass
     to  try  title  and  restitution.

<PAGE>

          (j)  Mortgagee may require Mortgagor to assemble any Personal Property
     and  any  other  items  of the Mortgaged Property, or any part thereof, and
     make  it  available  to  Mortgagee  at  a  place  reasonably  convenient to
     Mortgagor  and  Mortgagee  to  be  designated  by  Mortgagee.

          (k) Mortgagee may surrender the insurance policies maintained pursuant
     to  the  Credit  Agreements, or any part thereof, and receive and apply the
     unearned  premiums  as  a  credit  on  the  Secured  Indebtedness,  and, in
     connection  therewith, Mortgagor hereby appoints Mortgagee as the agent and
     attorney-in-fact  for  Mortgagor  (with  full  powers  of  substitution) to
     collect  such  premiums,  which  power  of attorney shall be deemed to be a
     power  coupled with an interest and therefore irrevocable until the release
     of  the  Liens  evidenced  by  this  Mortgage.

          (l)  Mortgagee may retain the Personal Property and any other items of
     the  Mortgaged  Property,  or  any part thereof, in satisfaction or partial
     satisfaction  of  the  Secured  Indebtedness whenever the circumstances are
     such  that  Mortgagee  is  entitled  to  do  so  under  the  Code.

          (m) Mortgagee shall have the right to become the purchaser at any sale
     of  the  Mortgaged  Property  held  by  Mortgagee, Trustee or by any court,
     receiver  or  public  officer, and Mortgagee shall have the right to credit
     upon the amount of the bid made therefor, the amount payable out of the net
     proceeds  of  such  sale to Mortgagee. Recitals contained in any conveyance
     made  to  any  purchaser  at  any  sale  made  hereunder shall conclusively
     establish  the truth and accuracy of the matters therein stated, including,
     without  limiting the generality of the foregoing, nonpayment of the unpaid
     principal  sum  of, interest accrued on, and fees payable in respect of the
     Secured  Indebtedness  after  the  same  have  become  due and payable, and
     advertisement  and  conduct  of  such sale in the manner provided herein or
     appointment  of  any  successor  Trustee  hereunder.

          (n) Mortgagee may buy any Personal Property and any other items of the
     Mortgaged  Property  or  any part thereof at any private disposition if the
     Mortgaged  Property  or  the  part  thereof  being  disposed  of  is a type
     customarily  sold  in a recognized market or a type which is the subject of
     widely  distributed  standard  price  quotations.

          (o)  Mortgagee  shall  have  and may exercise any and all other rights
     which  Mortgagee  may  have  under  the  Code,  by  virtue  of  the  Credit
     Agreements,  this  Mortgage,  at  law,  in  equity  or  otherwise.

     Mortgagee shall have no obligation to do, or refrain from doing, any of the
acts, or to make or refrain from making any payment, referred to in this Section
6.1.

     6.2.  Foreclosure  by Judicial Proceedings. Upon the occurrence of an Event
           ------------------------------------
of Default, Mortgagee may proceed, where permitted by law, by a suit or suits in
equity  or  at  law, whether for a foreclosure hereunder, or for the sale of the
Mortgaged Property, or for the specific performance of any covenant or agreement
herein  contained or in aid of the execution of any power herein granted, or for
the  appointment  of a receiver pending any foreclosure hereunder or the sale of
the Mortgaged Property, or for the enforcement of any other appropriate legal or
equitable  remedy.

<PAGE>

     6.3. Receipt to Purchaser. Upon any sale by virtue of judicial proceedings,
          --------------------
the  receipt of the officer making such sale under judicial proceedings shall be
sufficient discharge to the purchaser or purchasers at any sale for his or their
purchase  money,  and  such  purchaser or purchasers, or his or their assigns or
personal  representatives,  shall  not,  after  paying  such  purchase money and
receiving  such  receipt  of  such  officer therefor, be obligated to see to the
application  of  such  purchase  money or be in any way answerable for any loss,
misapplication  or  non-application  thereof.

     6.4.  Effect  of  Sale.  Any  sale  or  sales  of the Mortgaged Property or
           ----------------
portions  thereof  where  permitted  by  law  shall operate to divest all right,
title,  interest,  claim  and  demand  whatsoever  either at law or in equity of
Mortgagor  of,  in  and  to  the  premises  and the property sold and shall be a
perpetual  bar,  both  at  law and in equity, against Mortgagor, and Mortgagor's
successors,  legal  representatives  or assigns, and against any and all Persons
claiming  or  who  shall  thereafter  claim  all or any of the property sold by,
through or under Mortgagor, or Mortgagor's successors, legal representatives and
assigns. Nevertheless, Mortgagor, if requested by Mortgagee to do so, shall join
in  the  execution  and  delivery  of  all  proper  conveyances, assignments and
transfers  of  the  properties  so  sold.

     6.5.  Application  of  Proceeds.  The  proceeds  of  any  sale  of or other
           -------------------------
realization  on the Mortgaged Property, or any part thereof, shall be applied by
Mortgagee  to  the  Secured Indebtedness in such order as Mortgagee shall elect.

     6.6.  Mortgagor's  Waiver  of  Right  to  Appraisement,  Marshaling,  etc.
           -------------------------------------------------------------------
Mortgagor  agrees, to the full extent that Mortgagor may lawfully so agree, that
Mortgagor  will  not  at  any  time  insist  upon  or  plead  or,  in any manner
whatsoever,  claim  the  benefit of any stay, extension or redemption law now or
hereafter  in force in order to prevent or hinder the enforcement or foreclosure
of  this  Mortgage or the absolute sale of the Mortgaged Property or any portion
thereof  or the possession thereof by any purchaser at any sale made pursuant to
any  provision  hereof  or  pursuant  to  the  decree  of any court of competent
jurisdiction;  but  Mortgagor, and all who may claim through or under Mortgagor,
so  far  as  Mortgagor  or  those  claiming  through  or  under Mortgagor now or
hereafter  lawfully  may,  hereby waives the benefit of all such laws. Mortgagor
and  all  who  may  claim  through or under Mortgagor waives, to the extent that
Mortgagor  or  those claiming through or under Mortgagor may lawfully do so, any
and  all  rights  of  appraisement  and  any and all right to have the Mortgaged
Property  marshaled  upon  any foreclosure of the Lien hereof or sold in inverse
order  of  alienation  and agree that any court having jurisdiction to foreclose
such  Lien  may  sell  the Mortgaged Property as an entirety. If any law in this
Section  6.6  referred  to  and  now in force, of which Mortgagor or Mortgagor's
successor  or  successors  might  take  advantage despite the provisions hereof,
shall  hereafter  be  repealed  or  cease  to  be  in  force, such law shall not
thereafter  be deemed to constitute any part of the contract herein contained or
to  preclude the operation or application of the provisions of this Section 6.6.

     6.7.  Mineral  Leasing  Act.  Notwithstanding  any other provisions of this
           ---------------------
Mortgage,  any  Oil and Gas Leases covered by this Mortgage which are subject to
the  Mineral  Leasing  Act  of 1920, as amended, and the regulations promulgated
thereunder,  shall  not be sold or otherwise disposed of to any party other than
citizens  of  the  United  States, or to associations of such citizens or to any
corporation  organized  under  the  laws  of  the United States, or any state or

<PAGE>

territory thereof that are qualified to own or control interests in such Oil and
Gas  Leases under the provisions of such Mineral Leasing Act and regulations, or
to  Persons  who  may  acquire  ownership or interest in such Oil and Gas Leases
under  the  provisions  of 30 U.S.C. Sec. 184(g), if applicable, as such Mineral
Leasing  Act  or  regulations  are  now  or  may be from time to time in effect.

     6.8.  Costs  and  Expenses.  All  reasonable  costs,  expenses  (including
           --------------------
attorneys'  fees)  and  payments incurred or made by Mortgagee in protecting and
enforcing  its  rights  hereunder  shall constitute a demand obligation owing by
Mortgagor to the party incurring such or making such costs, expenses or payments
and  shall  bear  interest  at  a  rate per annum equal to the rate set forth in
Section  2.2 of the Note, all of which shall constitute a portion of the Secured
Indebtedness.

     6.9.  Operation of the Mortgaged Property by Mortgagee. Upon the occurrence
           ------------------------------------------------
of  an  Event  of Default that is continuing and the acceleration of the Secured
Indebtedness  under  any  Credit  Agreement, and in addition to all other rights
herein conferred on Mortgagee, Mortgagee (or any Person designated by Mortgagee)
shall,  to the extent permitted by applicable law, have the right and power, but
not  the  obligation,  to enter upon and take possession of any of the Mortgaged
Property  and  to  exclude Mortgagor, and Mortgagor's agents or servants, wholly
therefrom  and  to  hold,  use,  administer,  manage and operate the same to the
extent that Mortgagor shall be at the time entitled to do any of such things and
in  Mortgagor's  place  and  stead.  Mortgagee  (or  any  Person  designated  by
Mortgagee)  may  operate  the same without any liability or duty to Mortgagor in
connection with such operations, except to use ordinary care in the operation of
such  Mortgaged  Property,  and  Mortgagee or any Person designated by Mortgagee
shall  have  the right to collect and receive all Hydrocarbons produced and sold
from  the  Mortgaged  Property,  the  proceeds  of which shall be applied to the
Secured  Indebtedness  in  such order as Mortgagee shall elect, to make repairs,
purchase  machinery and equipment, conduct workover operations, drill additional
wells and to exercise every power, right and privilege of Mortgagor with respect
to  the  Mortgaged  Property.  When  and  if such expenses of such operation and
development  (including  costs of unsuccessful workover operations or additional
wells)  have  been paid and the Secured Indebtedness paid and performed in full,
such Mortgaged Property shall, if there has been no sale or foreclosure thereof,
be  returned  to  Mortgagor.

     6.10.  Additional  Waivers. In order to enforce this Mortgage, Mortgagee or
            -------------------
Trustee  shall  not  be obligated (a) to foreclose any other mortgage or deed of
trust  covering  Mortgaged  Property located in another State, seek a deficiency
after any such foreclosure or otherwise enforce Mortgagee's rights in any of the
other  Mortgaged  Property;  or  (b)  to  seek  an  injunction  (prohibitive  or
mandatory),  the  appointment  of a receiver, an order modifying any stay in any
federal  or  state  bankruptcy,  reorganization  or other insolvency proceedings
relating  to  any of the Mortgaged Property or any portion thereof, or any other
extraordinary  relief. Mortgagor waives, to the fullest extent permitted by law,
any  defense  Mortgagor may have to any liability hereunder based on Mortgagee's
failure  or  refusal  to  prosecute,  or  any  lack  of  diligence  or  delay in
prosecuting,  any  action or proceeding to enforce any other mortgage or deed of
trust.  If  Mortgagee  elects  to  enforce  this  Mortgage  before,  or without,
enforcing its rights with respect to any Mortgaged Property covered by any other
Mortgage,  Mortgagor  waives,  to the fullest extent permitted by law, any right
Mortgagor  may have, whether statutory or otherwise, to set off the value of any
other  Mortgaged  Property,  or  any  portion  thereof,  against  the  Secured
Indebtedness.  If  Mortgagee  elects  to enforce its mortgages or deeds of trust
covering  all  or any portion of the Mortgaged Property located in other States,
or in conjunction with the enforcement of this Mortgage, Mortgagee is authorized

<PAGE>

to  purchase  all  or  any  part  of  such other Mortgaged Property at public or
private  sale  or  as  otherwise  provided  by applicable law, and to credit the
purchase  price  against  the  Secured  Indebtedness  in such order or manner as
Mortgagee  determines  in its sole discretion and to preserve Mortgagee's rights
and  Liens  under this Mortgage for any portion of the Secured Indebtedness that
remains  unpaid.  Mortgagor waives to the fullest extent permitted by applicable
law  any  right  to claim or seek any credit against the Secured Indebtedness in
excess  of the actual amount bid or received by Mortgagee in connection with the
foreclosure  of  Mortgagee's  Liens  on any of the Mortgaged Property located in
such other States. Mortgagor further agrees that Mortgagee shall not be required
(a)  to  seek  or  obtain  a deficiency judgment in or pursuant to any action or
proceeding  to  foreclose  this  Mortgage  as a condition of later enforcing any
mortgage  or deed of trust covering Mortgaged Property located in another State,
or  (b)  to seek or obtain a deficiency judgment in or pursuant to any action or
proceeding  to foreclose any such other mortgage or deed of trust as a condition
of later enforcing this Mortgage. Notwithstanding the foregoing, if Mortgagee in
good  faith  believes  that  it  may  be  required either to obtain a deficiency
judgment  to  enforce  this  Mortgage after enforcement of a mortgage or deed of
trust covering Mortgaged Property located in another State or to enforce another
mortgage  or  deed  of  trust  after enforcement of this Mortgage then Mortgagor
agrees  that  Mortgagee  shall  be entitled to seek and obtain such a deficiency
judgment notwithstanding any contrary or inconsistent provision contained in any
Credit  Agreement.

                                   ARTICLE VII
                                  MISCELLANEOUS

     7.1.  Advances by Mortgagee. Each and every covenant herein contained shall
           ---------------------
be  performed  and kept by Mortgagor solely at Mortgagor's expense. If Mortgagor
shall  fail to perform or keep any of the covenants of whatsoever kind or nature
contained  in  this Mortgage, Mortgagee or any receiver appointed hereunder may,
but  shall not be obligated to, make advances to perform the same on Mortgagor's
behalf, and Mortgagor hereby agrees to repay such sums upon demand plus interest
at  a  rate  per annum equal to the rate of interest set forth in Section 2.2 of
the Note. No such advance shall be deemed to relieve Mortgagor from any Event of
Default  hereunder.

     7.2.  Defense  of  Claims.  Mortgagor  will  notify  Mortgagee, in writing,
           -------------------
promptly  of  the  commencement  of any legal proceedings of which Mortgagor has
notice  affecting  or which could adversely effect the Lien hereof or the status
of or title to the Mortgaged Property or any material part thereof and will take
such  action, employing attorneys agreeable to Mortgagee, as may be necessary to
preserve  Mortgagor's  or  Mortgagee's  rights  affected  thereby;  and  should
Mortgagor fail or refuse to take any such action, Mortgagee may take such action
on behalf and in the name of Mortgagor and at Mortgagor's sole cost and expense.
Moreover,  Mortgagee may take such independent action in connection therewith as
it  may,  in  its  sole discretion, deem proper without any liability or duty to
Mortgagor  except  to use ordinary care, Mortgagor hereby agreeing that all sums
advanced  or  all  expenses incurred in such actions plus interest at a rate per
annum  equal  to the rate of interest set forth in Section 2.2 of the Note will,
on  demand,  be  reimbursed  to  Mortgagee  or any receiver appointed hereunder.

<PAGE>

     7.3.  Defeasance.  If the Secured Indebtedness shall be paid and discharged
           ----------
in  full  then,  and in that case only, this Mortgage shall be null and void and
the  interests  of Mortgagor in the Mortgaged Property shall become wholly clear
of the Lien created hereby, and such Lien shall be released in due course at the
cost  of  Mortgagor.  Mortgagee  will,  at Mortgagor's sole expense, execute and
deliver  to Mortgagor all releases and other instruments reasonably requested of
the  Lien  created hereunder. Otherwise, this Mortgage shall remain and continue
in  full  force  and  effect.

     7.4.  Renewals,  Amendments  and Other Security. Renewals, refinancings and
           -----------------------------------------
extensions  of the Secured Indebtedness may be given at any time, and amendments
may  be  made  to  this Mortgage, the Credit Agreements and any other agreements
relating  to any part of the Secured Indebtedness, and Mortgagee may take or may
hold other security for the Secured Indebtedness. Any amendment of this Mortgage
shall  be  by  written instrument and need be executed only by the party against
whom  enforcement  of  such amendment is asserted. Mortgagee may resort first to
such other security or any part thereof or first to the security herein given or
any part thereof, or from time to time to either or both, even to the partial or
complete  abandonment  of either security, and such action shall not be a waiver
of  any  rights conferred by this Mortgage, which shall continue as a first Lien
upon  the  Mortgaged  Property  not  expressly  released  until  all  Secured
Indebtedness  secured  hereby  is  fully  paid  and  discharged.

     7.5.  Instrument  and  Assignment, etc. This Mortgage shall be deemed to be
           --------------------------------
and  may  be  enforced  from  time  to  time as an assignment, chattel mortgage,
contract, financing statement, real estate mortgage, pledge, security agreement,
or  any  combination thereof, and to the extent that any particular jurisdiction
wherein  a  portion  of the Mortgaged Property is situated does not recognize or
permit Mortgagor to grant, bargain, sell, warrant, mortgage, assign, transfer or
convey  Mortgagor's  rights,  titles  and  interests  to Mortgagee in the manner
herein  adopted,  with  respect  to  the  Mortgaged  Property  located  in  such
jurisdiction,  Mortgagor  does  hereby  grant, bargain, sell, warrant, mortgage,
assign,  transfer and convey unto Mortgagee the Mortgaged Property to secure the
Secured  Indebtedness  and  the  Obligations  of  Mortgagor  contained  herein.

     7.6.  Limitation on Interest. Regardless of any provision contained in this
           ----------------------
Mortgage  or  any of the Credit Agreements, Mortgagee shall never be entitled to
receive,  collect,  or  apply, as interest on the Loans, any amount in excess of
the  Maximum  Lawful Rate, and in the event Mortgagee ever receives, collects or
applies as interest any such excess, such amount which would be deemed excessive
interest shall be deemed a partial prepayment of principal and treated hereunder
as  such; and if the Loans are paid in full, any remaining excess shall promptly
be paid to Mortgagor. In determining whether or not the interest paid or payable
under any specific contingency exceeds the Maximum Lawful Rate, Mortgagor shall,
to the extent permitted under applicable law, (a) characterize any non-principal
payment  as  an  expense,  fee  or  premium rather than as interest, (b) exclude
voluntary  prepayments  and  the  effect  thereof,  and  (c)  amortize, prorate,
allocate and spread, in equal parts, the total amount of the interest throughout
the  entire  contemplated  term  of  the  Note, so that the interest rate is the
Maximum  Lawful  Rate throughout the entire term of the Note; provided, however,
that if the unpaid principal balance thereof is paid and performed in full prior
to  the  end of the full contemplated term thereof, and if the interest received
for  the  actual  period  of  existence thereof exceeds the Maximum Lawful Rate,

<PAGE>

Mortgagee  shall  refund  to  Mortgagor  the amount of such excess, and, in such
event,  Mortgagee shall not be subject to any penalties provided by any laws for
contracting  for, charging, taking, reserving or receiving interest in excess of
the  Maximum  Lawful  Rate.

     7.7.  Unenforceable  or  Inapplicable  Provisions. If any provision of this
           -------------------------------------------
Mortgage  or  in any of the Credit Agreements is invalid or unenforceable in any
jurisdiction,  the  other  provisions  hereof or of any of the Credit Agreements
shall  remain  in  full force and effect in such jurisdiction, and the remaining
provisions hereof shall be liberally construed in favor of Mortgagee in order to
effectuate  the provisions hereof, and the invalidity of any provision hereof in
any  jurisdiction  shall  not  affect the validity or enforceability of any such
provision  in any other jurisdiction. Any reference herein contained to statutes
or  laws of a state in which no part of the Mortgaged Property is situated shall
be  deemed  inapplicable  to,  and  not  used  in,  the  interpretation  hereof.

     7.8. Rights Cumulative. Each and every right, power and remedy herein given
          -----------------
to  Mortgagee  shall  be cumulative and not exclusive; and each and every right,
power  and remedy whether specifically herein given or otherwise existing may be
exercised  from  time  to  time  and so often and in such order as may be deemed
expedient  by  Mortgagee, and the exercise, or the beginning of the exercise, of
any  such  right,  power  or remedy shall not be deemed a waiver of the right to
exercise,  at the same time and thereafter, any other right, power or remedy. No
delay  or  omission  by  Mortgagee in the exercise of any right, power or remedy
shall  impair  any such right, power or remedy or operate as a waiver thereof or
of  any  other  right,  power  or  remedy  then  or  thereafter  existing.

     7.9.  Waiver by Mortgagee. Any and all covenants in this Mortgage may, from
           -------------------
time  to  time,  by  instrument in writing signed by Mortgagee be waived to such
extent and in such manner as Mortgagee may desire, but no such waiver shall ever
affect  or  impair Mortgagee's rights and remedies or Liens hereunder, except to
the  extent  specifically  stated  in  such  written  instrument.

     7.10.  Successors and Assigns. This Mortgage is binding upon Mortgagor, and
            ----------------------
Mortgagor's  heirs, devisees, successors, personal and legal representatives and
assigns,  and  shall  inure  to  the  benefit of Mortgagee and Trustee and their
successors,  legal  representatives and assigns, and the provisions hereof shall
likewise  be  covenants  running  with  the  Lands.

     7.11.  Article  and  Section  Headings. The article and section headings in
            -------------------------------
this Mortgage are inserted for convenience and shall not be considered a part of
this  Mortgage  or  used  in  its  interpretation.

     7.12.  Counterparts.  This  Mortgage  may  be  executed  in  any  number of
            ------------
counterparts,  each  of which shall for all purposes be deemed to be an original
and  all  of  which are identical, except that, to facilitate recordation in any
particular  county  or  parish, counterpart portions of Exhibit A which describe
properties  situated  in counties or parishes other than the county or parish in
which  such  counterpart  is  to  be  recorded  may  be  omitted.

     7.13.  Special Filing as Financing Statements. This Mortgage shall likewise
            --------------------------------------
be  a  security  agreement  and a financing statement by virtue of Mortgagor, as
debtor,  granting  to  Mortgagee,  its  successors,  legal  representatives  and
assigns,  as  secured  party,  a  security  interest  in  all personal property,
as-extracted  collateral,  fixtures,  accounts,  contract  rights,  general
intangibles,  inventory,  goods, chattel paper, instruments, documents and money

<PAGE>

described or referred to in granting clauses (a) through (j) of Article 2 hereof
and  all  proceeds and products from the sale, lease or other disposition of the
Mortgaged  Property  or  any  part  thereof. The addresses shown in Section 7.14
hereof  are  the addresses of Mortgagor and Mortgagee and information concerning
the  security interest may be obtained from Mortgagee at its address. Without in
any  manner  limiting  the generality of any of the foregoing provisions hereof:
(a) some portion of the goods described or to which reference is made herein are
or  are  to become fixtures on the Lands described or to which reference is made
herein;  (b)  the  minerals and the like (including oil and gas) included in the
Mortgaged  Property  and  the  accounts  resulting from the sale thereof will be
financed  at the wellhead(s) or minehead(s) of the well(s) or mine(s) located on
the  Lands described or to which reference is made herein; and (c) this Mortgage
is to be filed of record, among other places, in the real estate records of each
county  or  parish  in  which the Lands, or any part thereof, are situated, as a
financing  statement,  but  the  failure  to do so will not otherwise affect the
validity  or  enforceability of this Mortgage. Mortgagor authorizes Mortgagee to
file  such  amendments  to  this  Mortgage,  financing statements and amendments
thereto,  and continuation statements as Mortgagee deems reasonable or necessary
to  perfect  and  maintain the perfection of the Liens granted herein, including
such  Liens  with respect to any additions to the Mortgaged Property as provided
in  Article  5.

     7.14.  Notices.  Whenever  this  Mortgage  requires or permits any consent,
            -------
approval,  notice,  request  or  demand from one party to another, such consent,
approval,  notice  or  demand  shall, unless otherwise required under applicable
law,  be  given  in  accordance  with  the  provisions of the Credit Agreements,
addressed to the party to be notified at the address stated below (or such other
address  as  may  have  been designated in accordance with the provisions of the
Credit  Agreements):

                   MORTGAGOR-DEBTOR           MORTGAGEE-SECURED PARTY

Gulf Coast Oil Corporation                    Laurus Master Fund, Ltd.
Attn: Edward R.  DeStefano                    c/o M&C Corporate Services Limited
5851 San Felipe, Suite 775                    PO Box 309 G.T.
Houston, Texas 77057                          Ugland House, South Church Street,
Fax:  713-266-4358                            George Town
                                              Grand Cayman, Cayman Islands
                                              Facsimile:  345-949-8080

with copies to:                               with copies to:

W. Mark Cotham                                Scott J. Giordano, Esq.
Cotham, Harwell & Evans                       Loeb & Loeb, LLP
1616 S.  Voss, Suite 200                      345 Park Avenue
Houston, Texas 77057                          New York, New York 10154
Facsimile:  713-647-7512                      Facsimile  212-407-4990

     7.15.  GOVERNING  LAW.  THIS  MORTGAGE,  THE NOTE AND THE CREDIT AGREEMENTS
            --------------
SHALL  BE  CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF
TEXAS  AND  THE  LAWS  OF  THE  UNITED  STATES  OF  AMERICA.

<PAGE>

     7.16.  Future  Advances:  Maximum  Secured Amount. This Mortgage covers not
            ------------------------------------------
only  the  proceeds of the Loan, but all advances hereafter made by Mortgagee to
or  for  the  benefit  of  Mortgagor (the "Future Advances"), including, without
limitation,  any  amounts  advanced  by  Mortgagee in satisfying, on Mortgagor's
behalf,  any  of  Mortgagor's  Obligations,  and any advances made in accordance
herewith  by  Mortgagee  to  protect  its  security,  and  any other advances by
Mortgagee.  The  maximum  amount  secured hereby may be advanced and repaid, and
again  advanced  and  repaid  from time to time, in Mortgagee' sole and absolute
discretion,  and this Mortgage shall become enforceable upon recording and shall
have  priority  over  all  other  parties whose rights arose after the recording
hereof, with respect to all funds advanced by Mortgagee to Mortgagor, regardless
of  whether  such  funds were advanced before or after the arising of such other
party's  rights.  Nothing  herein shall be interpreted as requiring Mortgagee to
make any Future Advances hereunder. The maximum principal amount secured by this
Mortgage  at  any  one  time  shall  be  $90,000,000.

     7.17.  Recording. Executed original counterparts of this Mortgage are to be
            ---------
filed  for  record in the records of the Counties wherein the Mortgaged Property
is  situated,  and shall have annexed thereto as Exhibit A, only the portions or
divisions containing specific descriptions of the Mortgaged Property relating to
the  Lands  located  in  such  Counties. Whenever a recorded counterpart of this
Mortgage  contains  specific  descriptions  which  are  less  than  all  of  the
descriptions  contained  in  any  full  counterpart  lodged  with Mortgagee, the
omitted  descriptions  are  hereby  included  by  reference  in  such  recorded
counterpart  as  if  each recorded counterpart conformed to any full counterpart
lodged  with  Mortgagee.

                                  ARTICLE VIII
                            ASSIGNMENT OF PRODUCTION

     8.1.  Assignment.  For  the  purpose  of  further  securing  the  Secured
           ----------
Indebtedness  and  the performance of Mortgagor's covenants hereunder, Mortgagor
does  hereby  TRANSFER,  ASSIGN,  AND  CONVEY  unto Mortgagee any and all of the
interests  of Mortgagor in and to the Hydrocarbons that may be produced from, or
attributable  to,  the  Mortgaged  Property  on  and  after  the Effective Date,
together  with  the  proceeds of the sale thereof and attributable thereto. This
assignment  is  made  upon  the  following  terms  and  conditions: (a) pipeline
companies  and  others  purchasing  the  oil, gas, minerals and other substances
listed  above  produced  and  to  be  produced  from  said  property  are hereby
authorized  and directed to pay directly to Mortgagee the interests of Mortgagor
in  and  to  the  proceeds  of  the  sale  of  the  oil, gas, minerals and other
substances  listed  above  produced,  to  be  produced  and attributable to said
property  and  to  continue  such payments until they have been furnished with a
release  hereof  executed  in writing by Mortgagee, and the receipt of Mortgagee
for  monies  so  paid  to it shall be a full and complete release, discharge and
acquittance  to  any  such pipeline company or other purchaser, to the extent of
all  amounts  so paid; (b) Mortgagee is hereby authorized to receive and collect
the  proceeds  of the sale of the oil, gas, minerals and other substances listed
above  assigned  to it hereunder and to apply the funds so received first toward
the  payment  of  the  expenses, if any, incurred in the collection thereof then
toward  the payment of the Secured Indebtedness, any balance remaining after the
full  and  final  payment  of the Secured Indebtedness to be held subject to the
order  of  Mortgagor; (c) Mortgagee shall have the right, at its sole option, at
any  time,  and  from time to time, to release to, or on the order of, Mortgagor

<PAGE>

all  or  any  portion  of the funds assigned to Mortgagee hereunder, and no such
releases  shall  affect  or impair the Lien of this Mortgage or the validity and
effect  of the assignment contained in this Article 8; (d) Mortgagee shall never
be  under  any  obligation to enforce the collection of the funds assigned to it
hereunder,  nor shall it ever be liable for failure to exercise diligence in the
collection  of such funds, but it shall only be accountable for the sums that it
shall  actually receive; (e) Mortgagor covenants to cause all pipeline companies
or  other purchasers of the oil, gas, minerals and other substances listed above
produced from and attributable to said property to pay promptly to Mortgagee, at
the  office of Mortgagee at the address of Mortgagee stated above, the interests
of  Mortgagor  in and to the proceeds of the sale thereof; and (f) upon the full
and  final  payment  of  the  Secured Indebtedness, Mortgagee, at the request of
Mortgagor,  at  Mortgagor's  sole cost and expense, shall execute and deliver to
Mortgagor  a  reassignment  hereof,  without  recourse,  representations  or
warranties.  Notwithstanding  the  foregoing  provisions of this Section 8.1, so
long  as no Event of Default has occurred and shall be continuing, Mortgagor may
continue  to receive from the purchasers of production all such Hydrocarbons and
proceeds  of the sale thereof, subject, however, to the Liens created under this
Mortgage.  If  an Event of Default has occurred and is continuing, Mortgagee may
exercise  all  rights  and  remedies  granted  hereunder,  including,  without
limitation,  the  right to obtain possession of all Hydrocarbons and proceeds of
the  sale  thereof  then  held  by  Mortgagor  or  to  receive directly from the
purchasers  all  other  Hydrocarbons  and  proceeds  of  the  sale  thereof.

     8.2.  Power  of  Attorney.  In  consideration of the Loans evidenced by the
           -------------------
Note,  Mortgagor hereby designates and appoints Mortgagee as Mortgagor' true and
lawful  agent  and  attorney-in-fact  (with  full  power of substitution, either
generally or for such limited periods or purposes as Mortgagee may, from time to
time, prescribe) with full power and authority for and on behalf and in the name
of  Mortgagor  upon the occurrence of an Event of Default that is continuing, to
execute,  acknowledge  and  deliver  all  such division orders, transfer orders,
certificates  and  any and all other documents of every nature as may, from time
to  time,  be  necessary  or  proper to effectuate the intent and purpose of the
assignment  contained in Section 8.1 hereof. Mortgagor shall be bound thereby as
fully  and  effectively  as  if  Mortgagor  had  duly executed, acknowledged and
delivered  any  such  division  order,  transfer  order,  certificate  or  other
documents.  The  powers  and  authorities  herein  conferred on Mortgagee may be
exercised  by  any  authorized  officer  or  director of Mortgagee. The power of
attorney  conferred  by this Section 8.2 is granted for a valuable consideration
and  hence is coupled with an interest and is irrevocable so long as the Secured
Indebtedness, or any part thereof, shall remain unpaid. All Persons dealing with
Mortgagee,  any  officer  or director thereof above designated or any substitute
thereof  shall  be  fully  protected  in  treating the powers and authorizations
conferred  by  this  Section  8.2  as  continuing in full force and effect until
advised  by  Mortgagee that all of the Secured Indebtedness is fully and finally
paid.

                           [SIGNATURE PAGE TO FOLLOW]

<PAGE>

     IN  WITNESS  WHEREOF,  Mortgagor, acting by and through its duly authorized
officers  has  executed  this  Mortgage  on  the  date  of  its  acknowledgment.

                                   GULF  COAST  OIL  CORPROATION

                                   /s/ Edward R. DeStefano
                                   -------------------------------------
                                   Edward  R.  DeStefano
                                   President  &  CEO

The address of Mortgagor is:

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

                                   This  Mortgage  was  prepared  by,  and
                                   recorded  counterparts should be returned to:

                                   Scott  J.  Giordano,  Esq.
                                   Loeb  &  Loeb  LLP
                                   345  Park  Avenue
                                   New  York,  New  York  10154

<PAGE>

THE STATE OF TEXAS     )
                       :
COUNTY OF HARRIS       )

     BEFORE  ME,  the  undersigned  authority,  on  this day personally appeared
Edward R. DeStefano, President and CEO of GULF COAST OIL CORPORATION, a Delaware
corporation,  and  known  to me to be the person whose name is subscribed to the
foregoing  instrument,  and acknowledged to me that he executed the same for the
purposes  and  considerations  therein  expressed,  as  the act and deed of such
corporation  and  in  the  capacity  therein  stated.

     GIVEN  UNDER  MY  HAND  AND  SEAL OF OFFICE this  26th   day of April 2006.
                                                     ---------

                                       /s/ Kimberly Newman
                                       ---------------------------------------
                                       Notary Public, State of Texas

<PAGE>

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