Document:

EXHIBIT 10.1

                          SECURITIES PURCHASE AGREEMENT

      THIS SECURITIES PURCHASE AGREEMENT (the "Agreement") is entered into this
24th day of March, 2004, by and among FEQ GAS, LLC, a Delaware Limited Liability
Company ("FEQ"), TOUCHSTONE RESOURCES USA, INC., a Delaware Corporation
("Touchstone"), KNOX GAS, LLC, a Delaware Limited Liability Company ("Knox
Gas"), and KNOX MISS, LLC, a Delaware Limited Liability Company ("Knox Miss").

      WHEREAS, FEQ is a member of Knox Gas and holds 94 of the Membership
Interests of Knox Gas;

      WHERAS, Knox Gas owns a 1% interest (the "Interest") in Knox Miss, the
general partner of Knox Miss Partners, L.P., a Delaware limited partnership;

      WHEREAS, Touchstone desires to purchase from FEQ, and FEQ desires to sell
to Touchstone, 75 Membership Interests in Knox Gas (the "Membership Interests")
and Touchstone desires to purchase from Knox Gas and Knox Gas desires to sell to
Touchstone, the Interest in consideration for which Touchstone shall assume
FEQ's obligation to make $5,000,000 in capital contributions to Knox Gas.

      NOW, THEREFORE, in consideration of the premises hereof and the agreements
set forth herein below, and for other good and valuable consideration, the
receipt and sufficiency of which the parties hereto do hereby acknowledge, the
parties hereto, intending to be legally bound hereby, agree as follows:

      1. Sale and Purchase of Interest and Membership Interests. Subject to the
terms and conditions hereof, FEQ hereby sells to Touchstone and Touchstone
hereby purchases the Membership Interests, and Knox Gas hereby sells to
Touchstone and Touchstone hereby purchases the Interest, in consideration for
which Touchstone shall assume FEQ's obligation to make $5,000,000 in capital
contributions to Knox Gas (the "Purchase Price"). Payment of the Purchase Price
shall be made as follows:

            a.    $500,000 upon execution of this Agreement;
            b.    $500,000 on March 27, 2004;
            c.    $1,000,000 on or before April 27, 2004;
            d.    $1,000,000 on or before June 27, 2004
            e.    $2,000,000 on or before August 27, 2004.

      2. Closing.

      The purchase and sale of the Membership Interests (the "Closing") shall
take place at the offices of the Company at 111 Presidential Drive, Bala Cynwyd,
PA 19004, upon execution of this Agreement.

      At the Closing (i) Knox Gas shall deliver an amended Operating Agreement
of Knox Gas to the Parties evidencing Touchstone's ownership of 75 Membership
Interests of Knox Gas and (ii) Knox Miss shall deliver an amended Operating
Agreement of Knox Miss to the Parties evidencing Touchstone's ownership of a 1%
interest in Knox Miss.
<PAGE>

      3. Representations and Warranties of FEQ. FEQ represents and warrants to
Touchstone as follows:

            (a) Authority. FEQ is a limited liability company, validly existing
and in good standing under the laws of the state of Delaware and has all
requisite power and authority to carry on its business as now conducted and as
currently proposed to be conducted by it and to enter into and perform this
Agreement. All organizational action on the part of FEQ necessary for the
authorization, execution, delivery and performance of all obligations of FEQ
under the Agreement has been taken.

            (b) Binding Obligation. FEQ has the legal power and authority to
enter into and perform this Agreement and to consummate the transactions
contemplated hereby. This Agreement has been duly and validly executed and
delivered by and on behalf of FEQ and constitutes a valid and legally binding
obligation of FEQ, enforceable against FEQ in accordance with its terms.

            (c) Title to the Membership Interests. FEQ is the sole record and
beneficial owner of the Membership Interests, free and clear of all liens and
encumbrances of any kind and nature, any preemptive rights, co sale rights,
rights of first refusal or any other rights of any kind or nature which limit,
condition, or restrict in any way FEQ's right to transfer and sell the
Membership Interests. FEQ has the sole power and authority to transfer the
Membership Interests.

            (d) Absence of Litigation. There is no litigation or proceeding
pending or, to the best knowledge of FEQ, threatened, against FEQ, which would
have an effect on the validity or performance of this Agreement.

            (e) No Brokers Fees. No person has or will receive from FEQ, or to
FEQ's knowledge, from FEQ or any other person, any compensation as a broker,
finder, adviser or in any other capacity in connection with the purchase and
sale of the Membership Interests.

      4. Representations and Warranties of Touchstone. Touchstone hereby
represents and warrants to FEQ as follows:

            (a) Authority. Touchstone is a corporation duly organized, validly
existing and in good standing under the laws of the state of Delaware and has
all requisite corporate power and authority to carry on its business as now
conducted and as currently proposed to be conducted by it and to enter into and
perform this Agreement. All corporate action on the part of the Company
necessary for the authorization, execution, delivery and performance of all
obligations of the Company under the Agreement has been taken.

            (b) Binding Obligation. Touchstone has the legal power and authority
to enter into and perform this Agreement and to consummate the transactions
contemplated hereby. This Agreement has been duly and validly executed and
delivered by and on behalf of Touchstone and constitutes a valid and legally
binding obligation of Touchstone, enforceable against the Touchstone in
accordance with its terms.

            (c) Absence of Litigation. There is no litigation or proceeding
pending or, to the best knowledge of the Company, threatened, against Touchstone
which would have an effect on the validity or performance of this Agreement.

<PAGE>

            (d) Investment Intent. Touchstone understands, acknowledges and
represents that:

                  (i) The Membership Interests have not been registered under
the Securities Act of 1933, as amended (the "Securities Act"), or under any
state securities or blue sky laws and the transfer of the Membership Interests
is intended to be exempt from registration under the Securities Act based, in
part, upon the representations, warranties and covenants of FEQ contained
herein;

                  (ii) Neither the United States Securities and Exchange
Commission nor any state securities commission has approved the transfer of the
Membership Interests.

                  (iii) Touchstone has such knowledge, sophistication and
experience in financial, tax and business matters in general, and investments in
securities in particular, so that it is capable of evaluating the merits and
risks of an investment in the Membership Interests. Touchstone has made such
investigations in connection herewith as it has deemed necessary or desirable so
as to make an informed investment decision without relying on FEQ for legal or
tax advice related to this investment and has had the opportunity to obtain
additional information as desired in order to evaluate the merits of and the
risks inherent in an investment in the Membership Interests and has received all
such information requested and has had all such questions answered to its
satisfaction;

                  (iv) Touchstone is an "Accredited Investor" as that term is
defined in the Securities Act and the rules and regulations promulgated
thereunder; and

                  (v) Touchstone is purchasing the Membership Interests in a
private transaction separately negotiated with FEQ, for its own account, for
investment purposes and not with a view to distribution and in electing to make
such a purchase was unaware of, and did not rely on, and did not become aware of
the offering of the Membership Interests through or as a result of, any form of
general solicitation or general advertising including, without limitation, any
article, notice, advertisement or other communication published in any
newspaper, magazine or similar media, or broadcast over television or radio, in
connection with the offer and sale of the Membership Interests.

      5. Representations and Warranties of Knox Gas. Knox Gas represents and
warrants to Touchstone as follows:

            (a) Authority. Knox Gas is a limited liability company, validly
existing and in good standing under the laws of the state of Delaware and has
all requisite power and authority to carry on its business as now conducted and
as currently proposed to be conducted by it and to enter into and perform this
Agreement. All organizational action on the part of Knox Gas necessary for the
authorization, execution, delivery and performance of all obligations of Knox
Gas under the Agreement has been taken.

            (b) Binding Obligation. Knox Gas has the legal power and authority
to enter into and perform this Agreement and to consummate the transactions
contemplated hereby. This Agreement has been duly and validly executed and
delivered by and on behalf of Knox Gas and constitutes a valid and legally
binding obligation of Knox Gas, enforceable against Knox Gas in accordance with
its terms.

<PAGE>

            (c) Title to the Membership Interests. Knox Gas is the sole record
and beneficial owner of the Interest, free and clear of all liens and
encumbrances of any kind and nature, any preemptive rights, co sale rights,
rights of first refusal or any other rights of any kind or nature which limit,
condition, or restrict in any way Knox Gas' right to transfer and sell the
Interest. Knox Gas has the sole power and authority to transfer the Interest.

            (d) Absence of Litigation. There is no litigation or proceeding
pending or, to the best knowledge of Knox Gas, threatened, against Knox Gas,
which would have an effect on the validity or performance of this Agreement.

      6. Consents.

            (a) By executing below Knox Gas hereby consents to the assignment of
the Membership Interests by FEQ to Touchstone and to the admission of Touchstone
as a member of Knox Gas.

            (b) By executing below Knox Miss hereby consents to the assignment
of the Interest by Knox Gas to Touchstone and to the admission of Touchstone as
a member of Knox Miss.

      7. Confidentiality. The existence and contents of this Agreement and the
transactions contemplated hereby are confidential and shall not be disclosed to
any person for any reason.

      8. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Pennsylvania without regard to
conflict of laws principles.

      9. Sections and Other Headings. The section and other headings contained
in this Agreement are for the convenience of reference only, do not constitute
part of this Agreement or otherwise affect any of the provisions hereof.

      10. Entire Agreement. This Agreement represents the entire agreement
between the parties with respect to the subject matter hereof and supersedes any
and all prior and contemporaneously made written or oral agreements between the
parties relating to the subject matter hereof.

      11. Counterpart Signatures. This Agreement may be delivered via facsimile
and executed in counterpart both of which shall be deemed to be an original and
to be one and the same instrument.

<PAGE>

      IN WITNESS WHEREOF, intending to be legally bound, the parties hereto have
executed this Agreement as of the date first above written.

                                       FEQ GAS, LLC.

                                       By: FEQ Investments, Inc., Manager

                                       By:  /s/  Ernest A. Barlett
                                            ------------------------------------
                                            Ernest A. Bartlett, President

                                       TOUCHSTONE RESOURCES USA, INC.

                                       By:  /s/ Stephen P. Harrington
                                            ------------------------------------
                                            Stephen P. Harrington, President

                                       KNOX GAS, LLC

                                       By: PHT Gas, LLC, Manager

                                       By:  /s/  Mark A. Bush
                                            ------------------------------------

                                       KNOX MISS, LLC

                                       By:  /s/  Mark A. Bush
                                            ------------------------------------
                                       Mark A. Bush, ManagerEXHIBIT 10.2

                             SECURED PROMISSORY NOTE

$4,500,000                                                     February 26, 2004

      FOR VALUE RECEIVED, Knox Gas, LLC, a Delaware limited liability company
with a principal place of business at 111 Presidential Blvd., Suite 158A, Bala
Cynwyd, PA 19004 (the "Borrower"), hereby promises to pay to Continental
Southern Resources, Inc., a Nevada corporation with a principal place of
business at 1001 Fannin Street, Suite 1700, Houston, Texas 77010 (the "Lender"),
the principal sum of Four Million Five Hundred Thousand Dollars (US $4,500,000),
together with interest on the unpaid principal balance from time to time
outstanding, from the date hereof until maturity at a fixed rate per annum equal
to four percent (4%) (the "Stated Rate"). Interest on this Note shall be
calculated at an annual rate based on the actual number of days elapsed in an
actual calendar year (365 days or 366 days in a leap year, as may be
applicable).

      Principal and interest under this Note shall be due and payable as
follows:

      $500,000 plus accrued and unpaid interest shall be paid on or before March
27, 2004; $1,000,000 plus accrued and unpaid interest shall be paid on or before
April 27, 2004; $1,000,000 plus accrued and unpaid interest shall be paid on or
before June 27, 2004; and $2,000,000 plus accrued and unpaid interest shall be
paid on or before August 27, 2004.

      All past due principal of, and interest on, this Note shall accrue
interest from the date due until the date it is paid at the lower of (i) 4% plus
the Stated Rate per annum and (ii) the maximum rate allowed by law.

      The Borrower shall have the right, from time to time, without premium or
penalty, to prepay the indebtedness evidenced by this Note, in full or in part.

      The obligation of the Borrower for payment of principal, interest and all
other sums hereunder is secured by that certain Interest Pledge Agreement, dated
as of even date herewith, between the Borrower and the Lender (the "Pledge
Agreement").

      All payments (including prepayments) to be made by the Borrower hereunder,
whether on account of principal, interest or otherwise, shall be made without
set off or counterclaim and shall be made on or prior to the due date set forth
above to the Lender at the address set forth above, or such other place as the
Lender may from time to time designate in writing. If any payment or action to
be made or taken hereunder shall be stated to be or become due on a day that is
not a business day, such payment or action shall be made or taken on the next
following business day and such extension of time shall be included in computing
interest or fees, if any, in connection with such payment or action.

      "Event of Default," wherever used herein, means any one of the following
events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any
governmental authority):

<PAGE>

      (a) default in the payment of the principal sum of this Note, and any
interest accrued thereon, when such principal and interest becomes due and
payable (whether by acceleration or otherwise), or

      (b) the entry by a court having jurisdiction in the premises of (A) a
decree or order for relief in respect of the Borrower in an involuntary case or
proceeding under any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law or (B) a decree or order adjudging the
Borrower a bankrupt or insolvent, or approving as properly filed a petition
seeking reorganization, arrangement, adjustment or composition of or in respect
of the Borrower under any applicable Federal or State law, or appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Borrower or of any substantial part of its property, or
ordering the winding up or liquidation of its affairs, and the continuance of
any such decree or order for relief or any such other decree or order unstayed
and in effect for a period of 90 consecutive days; or

      (c) the commencement by the Borrower of a voluntary case or proceeding
under any applicable Federal or State bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or order
for relief in respect of the Borrower in an involuntary case or proceeding under
any applicable Federal or State bankruptcy, insolvency, reorganization or other
similar law or to the commencement of any bankruptcy or insolvency case or
proceeding against it, or the filing by it of a petition or answer or consent
seeking reorganization or relief under any applicable Federal or State law, or
the consent by it to the filing of such petition or to the appointment of or
taking possession by a custodian, receiver, liquidator, assignee, trustee,
sequestrator or similar official of the Borrower or of any substantial part of
its property, or the making by it of an assignment for the benefit of creditors,
or the admission by it in writing of its inability to pay its debts generally as
they become due, or the taking of corporate action by the Borrower in
furtherance of any such action.

      Upon the occurrence of an Event of Default, the entire amount of the
indebtedness evidenced by this Note shall be immediately due and payable. Upon
the acceleration of the obligations evidenced by this Note and failure by the
Borrower to pay amounts then due hereunder, Lender may proceed to protect,
exercise and enforce all of its rights and remedies under this Note, the Pledge
Agreement and that certain Interest Purchase Agreement, dated as of even date
herewith, between the Borrower and the Lender and applicable law. The remedies
provided in this Note are cumulative and concurrent, may be pursued in any
order, separately, successively or together, may be exercised as often as
occasion therefor may arise, and shall be in addition to, and not in
substitution for, the rights and remedies that would otherwise be vested in the
Lender for the recovery of damages, or otherwise, in the event of a breach of
any of the undertakings of the Borrower hereunder. This Note may not be
modified, altered or amended, except by an agreement in writing signed by the
Borrower and the Lender.

      It is the intention of the parties hereto to conform strictly to usury
laws applicable to the holder of this Note. Accordingly, if the transactions
contemplated hereby would be usurious under applicable law (including the laws
of the United States of America and the State of Texas), then, in that event,
notwithstanding anything to the contrary in this Note, it is agreed as follows:
(i) the aggregate of all consideration which constitutes interest under law
applicable to the holder of this Note that is contracted for, taken, reserved,
charged or received under this Note shall under no circumstances exceed the
maximum amount allowed by such applicable law; (ii) in the event that the
maturity of this Note is accelerated by reason of an election of the holder of
this Note resulting from any Event of Default, or in the event of any permitted
prepayment, then such consideration that constitutes interest under law
applicable to the holder of this Note may never include more than the maximum
amount allowed by such applicable law, and (iii) excess interest, if any,
provided for in this Note or otherwise shall be canceled automatically and, if
theretofore paid, shall be credited by the holder of this Note on the principal
amount of this Note (or, to the extent that the principal amount of this Note
shall have been or would thereby be paid in full, refunded by the holder of this

<PAGE>

Note to the Borrower). The right to accelerate the maturity of this Note does
not include the right to accelerate any interest that has not otherwise accrued
on the date of such acceleration, and the holder of this Note does not intend to
collect any unearned interest in the event of acceleration. All sums paid or
agreed to be paid to the holder of this Note for the use, forbearance or
detention of sums included in this Note shall, to the extent permitted by
applicable law, be amortized, prorated, allocated and spread throughout the full
term of this Note until payment in full so that the rate or amount of interest
on account of the indebtedness under this Note does not exceed the applicable
usury ceiling, if any. As used in this paragraph, the term "applicable law"
shall mean the law of the State of Texas.

      All reasonable attorney's fees and expenses and other reasonable
out-of-pocket costs incurred by the Payee in connection with the collection of
this Note subsequent to an Event of Default (as defined herein) shall become
amounts due and owing under the terms of this Note in addition to all other
amounts owing pursuant to the other provisions of this Note.

      Borrower hereby waives demand, presentment for payment, protest, notice of
protest, notice of intention to accelerate the indebtedness hereunder, notice of
the acceleration of the indebtedness hereunder and filing of suit and diligence
in collecting this Note or enforcing of any of the rights of Lender.

      This Note shall bind the Borrower and its successors and assigns, and the
benefits hereof shall inure to the benefit of the Lender and its successors and
assigns, except that Borrower may not sell, assign or transfer this Note or any
portion hereof without obtaining the prior written consent of the Lender. All
references herein to the "Borrower" and the "Lender" shall be deemed to apply to
the Borrower and the Lender, respectively, and their respective successors and
assigns.

      This Note and any other documents delivered in connection herewith and the
rights and obligations of the parties hereto and thereto shall for all purposes
be governed by and construed and enforced in accordance with the internal laws
of the State of Texas without giving effect to its conflicts of law principles.

      IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby,
has executed this Note as of the date first written above with the intention
that this Note shall constitute a sealed instrument.

                                 KNOX GAS, LLC

                                 By:  /s/ Ernest Bartlett
                                     ----------------------------------------
                                      Name: Ernest Bartlett
                                      Title: FEQ Investments, Managing Member

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