Document:

Exhibit 10.9

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

     THIS  AMENDED  AND  RESTATED  MORTGAGE,  DEED OF TRUST, SECURITY AGREEMENT,
FINANCING  STATEMENT  AND ASSIGNMENT OF PRODUCTION (this "Mortgage") is from NEW
CENTURY  ENERGY  CORP.,  a  Colorado corporation, and CENTURY RESOURCES, INC., a
Delaware  corporation,  together  as  Mortgagors  (individually  and  together,
"Mortgagors"),  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,  Mortgagors  entered  into  a  Mortgage,  Deed  of Trust, Security
Agreement,  Financing  Statement  and Assignment of Production with an effective
date  of  June  30,  2005  in  favor  of  Mortgagee  (the  "Original Mortgage");

     WHEREAS,  in order to secure the Secured Indebtedness (defined below), each
Mortgagor  has  agreed  to  execute and deliver this Mortgage pursuant to which,
among  other  things,  the  Mortgaged  Property  (defined  below) is granted and
assigned  by  Mortgagors 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 Mortgagors, Mortgagors hereby
agree  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 Mortgagors now or hereafter existing,
or hereafter acquired by, or on behalf of, Mortgagors, or Mortgagors' 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
Mortgagors  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.

<PAGE>

     "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.

     "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  June  30,  2005.

     "Event of Default" shall mean the occurrence of any breach by Mortgagors 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
Mortgagors,  or  any  other  party  having an interest in any Hydrocarbons to be
produced  from  mineral  interests  in  which Mortgagors own an interest, have a
right  or  an  obligation to take more or less than their 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 Gulf Coast Oil
Corporation  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

<PAGE>

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.

     "Loans"  shall  mean collectively, all amounts advanced by the Mortgagee to
Mortgagors  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
any  Mortgagor,  (b)  the right or ability of any Mortgagor to fully, completely
and  timely  perform  its  obligations  under  the Credit Agreements, or (c) the
validity or enforceability of any Credit Agreement against any 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 Mortgagors' 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 Mortgagors' 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
Mortgagors  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  Mortgagors  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,  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.

<PAGE>

     "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
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  Mortgagors  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
     Mortgagors  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 Mortgagors' 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

<PAGE>

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.

     "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.

     "Securities  Purchase  Agreement"  shall  mean  the  Securities  Purchase
Agreement  dated as of June 30, 2005 among Mortgagors and Mortgagee, as the same
may  be  amended,  modified  and  supplemented  from  time  to  time.

     "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 Mortgagors or to which Mortgagors
have  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  Credit  Agreements.

                                   ARTICLE II
                       GRANTING CLAUSE: MORTGAGED PROPERTY

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 Mortgagors, and for and in consideration of

<PAGE>

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
Mortgagors  hereinafter  described,  Mortgagors  hereby acknowledge, confirm and
agree  that  Mortgagee  has  and  shall continue to have a security interest and
mortgage  lien in all of the Mortgaged Property heretofore granted by Mortgagors
to  Mortgagee  pursuant  to  the  Original Mortgage and Mortgagors 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 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
Mortgagors'  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, Mortgagors
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  Mortgagors  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
     Mortgagors  and  any  third  party  that  provide  for  the  acquisition by
     Mortgagors  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;

<PAGE>

          (g)  the  Well  Data;

          (h) the rights and security interests of Mortgagors held by Mortgagors
     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
     Mortgagors  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
     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  Mortgagors 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  Mortgagors according to the terms of any present or future
     hedge  transaction,  including,  without  limitation, any present or future

<PAGE>

     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 Mortgagors 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(a) of the Note 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 Mortgagors 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").

                                   ARTICLE IV
       COVENANTS, REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF MORTGAGORS

     Mortgagors  hereby  covenant,  represent,  warrant  and  agree  that:

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

     4.2.  Warranties.  Mortgagors,  to the extent of the interests specified in
           ----------
Exhibit A, have good and defensible title, subject to Permitted Encumbrances, to
each  property right or interest constituting the Mortgaged Property, and have a
good and legal right to make the grant and conveyance made in this Mortgage; (b)
Mortgagors'  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
their  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. Mortgagors 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
Mortgagors  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. Mortgagors 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

<PAGE>

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, Mortgagors 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)  Mortgagors  shall maintain and operate the Subject Interests in a
     good  and  workmanlike  manner  and will observe and comply with all of the
     terms  and  provisions,  express  or  implied,  of  all  Oil and Gas Leases
     relating  to  the  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)  Mortgagors  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)  Mortgagors  shall,  at all times, 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
     Mortgagors  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)  Mortgagors shall cause the Mortgaged Property to be kept free and
     clear  of  all  Liens  other  than  Permitted  Encumbrances;

          (e)  Mortgagors  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 Mortgagors hereby assign 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 Mortgagors; and

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

<PAGE>

     4.6.  Recording.  Mortgagors will promptly and at Mortgagors' 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. Mortgagors will keep proper books of
           -------------------------------
record  and  account  in  which  complete  and  correct  entries will be made of
Mortgagors'  transactions  in  accordance  with  sound  accounting  principles,
consistently  applied and will, to the extent required by the Credit Agreements,
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 Mortgagors as Mortgagee may, from time to
time  reasonably  request.

     4.8.  No  Government  Approvals.  Mortgagors  warrant  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 Mortgagors of the covenants herein or
therein  contained.

     4.9.  Right  of  Entry.  Mortgagors 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  Mortgagors  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 peform or direct Trustee to perform any one or

<PAGE>

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
     Mortgagors 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,  Mortgagors would otherwise be
     entitled  to  give  or  withhold  and  perform  or  attempt  to perform any
     covenants  in  this  Mortgage  which  Mortgagors  are 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.

          (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
     Mortgagors 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  Mortgagors  have  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 Mortgagors promise, 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 4.2 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 Mortgagors, 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

<PAGE>

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
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 Mortgagors, 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  Mortgagors.

     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,
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

<PAGE>

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 Mortgagors do 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 Mortgagors, 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.
     Mortgagors  hereby consent to the appointment of such receiver or receivers
     and  agree  not to oppose any application therefor by Trustee or Mortgagee.

<PAGE>

          (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 Mortgagors' 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  Mortgagors,  including,
     specifically, one or more actions for forcible entry and detainer, trespass
     to  try  title  and  restitution.

          (j) Mortgagee may require Mortgagors 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
     Mortgagors  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, Mortgagors hereby appoint Mortgagee as the agent and
     attorney-in-fact  for  Mortgagors  (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.

<PAGE>

          (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.

     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
Mortgagors  of,  in  and  to  the  premises and the property sold and shall be a
perpetual  bar,  both  at law and in equity, against Mortgagors, and Mortgagors'
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  Mortgagors, or Mortgagors' successors, legal representatives
and assigns. Nevertheless, Mortgagors, 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.  Mortgagors'  Waiver  of  Right  to  Appraisement,  Marshaling,  etc.
           -------------------------------------------------------------------
Mortgagors agree, to the full extent that Mortgagors may lawfully so agree, that
Mortgagors  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 Mortgagors, and all who may claim through or under Mortgagors,
so  far  as  Mortgagors  or  those  claiming  through or under Mortgagors now or
hereafter  lawfully  may,  hereby waive the benefit of all such laws. Mortgagors

<PAGE>

and  all  who  may  claim through or under Mortgagors, waive, to the extent that
Mortgagors or those claiming through or under Mortgagors 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 Mortgagors or Mortgagors'
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.  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
Mortgagors  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  4.2  of  the  Note,  all of which shall constitute a portion of the
Secured  Indebtedness.

     6.8.  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
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.

     6.9.  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 Mortgagors, and Mortgagors' agents or servants, wholly
therefrom  and  to  hold,  use,  administer,  manage and operate the same to the
extent  that  Mortgagors  shall be at the time entitled to do any of such things
and  in  Mortgagors'  place  and  stead.  Mortgagee (or any Person designated by
Mortgagee)  may  operate the same without any liability or duty to Mortgagors 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 Mortgagors with

<PAGE>

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  Mortgagors.

     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. Mortgagors waive, to the fullest extent permitted by law,
any  defense Mortgagors 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,  Mortgagors  waive,  to the fullest extent permitted by law, any right
Mortgagors 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
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.  Mortgagors waive 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. Mortgagors further agree 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 Mortgagors
agree  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 Mortgagors solely at Mortgagors' expense. If Mortgagors
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 Mortgagors'

<PAGE>

behalf, and Mortgagors hereby agree to repay such sums upon demand plus interest
at  a  rate  per annum equal to the rate of interest set forth in Section 4.2 of
the  Note.  No such advance shall be deemed to relieve Mortgagors from any Event
of  Default  hereunder.

     7.2.  Defense  of  Claims.  Mortgagors  will  notify Mortgagee, in writing,
           -------------------
promptly  of  the commencement of any legal proceedings of which Mortgagors have
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  Mortgagors'  or  Mortgagee's  rights  affected  thereby;  and  should
Mortgagors  fail  or  refuse  to  take  any such action, Mortgagee may take such
action  on behalf and in the name of Mortgagors and at Mortgagors' 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  Mortgagors except to use ordinary care, Mortgagors 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 4.2 of the
Note  will,  on  demand,  be  reimbursed  to Mortgagee or any receiver appointed
hereunder.

     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  Mortgagors.  Mortgagee  will, at Mortgagors' sole expense, execute and
deliver to Mortgagors 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  Mortgagors  to grant, bargain, sell, warrant, mortgage, assign, transfer
or  convey  Mortgagors'  rights, titles and interests to Mortgagee in the manner
herein  adopted,  with  respect  to  the  Mortgaged  Property  located  in  such
jurisdiction,  Mortgagors  do  hereby  grant,  bargain, sell, warrant, mortgage,
assign,  transfer and convey unto Mortgagee the Mortgaged Property to secure the
Secured  Indebtedness  and  the  Obligations  of  Mortgagors  contained  herein.

<PAGE>

     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  Mortgagors.  In  determining  whether  or not the interest paid or
payable  under  any  specific  contingency  exceeds  the  Maximum  Lawful  Rate,
Mortgagors 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,  Mortgagee  shall  refund to Mortgagors 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 Mortgagors, and
           ----------------------
Mortgagors'  heirs, devisees, successors, personal and legal representatives and

<PAGE>

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 Mortgagors, as
debtors,  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
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 Mortgagors 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. Mortgagors authorize 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):

<PAGE>

        MORTGAGORS-DEBTORS                  MORTGAGEE-SECURED PARTY

        New Century Energy Corp.            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
        Century Resources, Inc.             Facsimile:  345-949-8080
        Attn: Edward R. DeStefano
        5851 San Felipe, Suite 775
        Houston, Texas 77057
        Fax:  713-266-4358

        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.

     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 Mortgagors (the "Future Advances"), including, without
limitation,  any  amounts  advanced  by  Mortgagee in satisfying, on Mortgagors'
behalf,  any  of  Mortgagors'  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  Mortgagors,
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

<PAGE>

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 Mortgagors' covenants hereunder, Mortgagors
do  hereby  TRANSFER,  ASSIGN,  AND  CONVEY  unto  Mortgagee  any and all of the
interests of Mortgagors 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 Mortgagors
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 Mortgagors; (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, Mortgagors
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) Mortgagors covenant 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  Mortgagors 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
Mortgagors,  at  Mortgagors' sole cost and expense, shall execute and deliver to
Mortgagors  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, Mortgagors 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  Mortgagors  or  to receive directly from the
purchasers  all  other  Hydrocarbons  and  proceeds  of  the  sale  thereof.

<PAGE>

     8.2.  Power  of  Attorney.  In  consideration of the Loans evidenced by the
           -------------------
Note,  Mortgagors hereby designate and appoint Mortgagee as Mortgagors' 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  Mortgagors 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. Mortgagors shall be bound thereby as
fully and effectively as if Mortgagors had personally 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.

     8.3. Amendment and Restatement. As of the date of this Mortgage, the terms,
          -------------------------
conditions,  covenants,  agreements, representations and warranties contained in
the  Original Mortgage shall be deemed amended and restated in their entirety as
set  forth in this Mortgage and the Original Mortgage shall be consolidated with
and  into  and  superseded  by  this  Mortgage;  provided, however, that nothing
contained  in  this Mortgage shall impair, limit or affect the liens or security
interests  heretofore  granted, pledged and/or assigned to Mortgagee as security
for  the  Secured  Indebtedness  under  the  Original  Mortgage.

                           [Signature Page to Follow]

<PAGE>

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

                                 NEW  CENTURY  ENERGY  CORP.

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

                                 CENTURY  RESOURCES,  INC.

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

The  addresses  of  Mortgagors  are:

New  Century  Energy  Corp.
5851  San  Felipe,  Suite  775
Houston,  Texas  77057

Century  Resources,  Inc.
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     Sec.
                          Sec.
COUNTY  OF  HARRIS        Sec.

     BEFORE  ME,  the  undersigned  authority,  on  this day personally appeared
Edward  R.  DeStefano, President and CEO of NEW CENTURY ENERGY CORP., a Colorado
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

THE  STATE  OF  TEXAS     Sec.
                          Sec.
COUNTY  OF  HARRIS        Sec.

BEFORE  ME, the undersigned authority, on this day personally appeared Edward R.
DeStefano, President and CEO of CENTURY RESOURCES, INC., 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>MASTER SECURITY AGREEMENT

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

Date:  April 26,  2006

To  Whom  It  May  Concern:

     1.  To  secure  the payment of all Obligations (as hereafter defined), Gulf
Coast Oil Corporation, a Delaware corporation (the "Company"), each of the other
undersigned  parties  (other  than Laurus Master Fund, Ltd., "Laurus")) and each
other entity that is required to enter into this Master Security Agreement (each
an  "Assignor"  and, collectively, the "Assignors") hereby assigns and grants to
Laurus a continuing security interest in all of the following property now owned
or  at  any  time hereafter acquired by such Assignor, or in which such Assignor
now  has  or at any time in the future may acquire any right, title or interest:

          (a) all cash, cash equivalents, accounts, accounts receivable, deposit
     accounts  (including,  without limitation, (x) the Restricted Accounts (the
     "Restricted  Accounts")  maintained  at North Fork Bank (Account Name: Gulf
     Coast  Oil  Corporation,  Account  Number:  270-4057658) referred to in the
     Restricted Account Agreement) and (y) Lockbox Deposit Accounts), inventory,
     equipment,  goods,  fixtures,  documents,  instruments  (including, without
     limitation,  promissory  notes),  contract  rights,  general  intangibles
     (including,  without  limitation, payment intangibles and an absolute right
     to  license on terms no less favorable than those currently in effect among
     such  Assignor's  affiliates),  chattel  paper,  supporting  obligations,
     investment  property  (including,  without limitation, all equity interests
     owned by any Assignor), letter-of-credit rights, all commercial tort claims
     set  forth  on Schedule A, trademarks, trademark applications, tradestyles,
                    ----------
     patents,  patent applications, copyrights, copyright applications and other
     intellectual  property  in  which  such  Assignor  now has or hereafter may
     acquire  any  right,  title  or interest, all proceeds and products thereof
     (including,  without  limitation, proceeds of insurance) and all additions,
     accessions  and  substitutions  thereto  or  therefor.

          (b)  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  hereto;
                                 ----------

          (c)  All  rights, titles, interests and estates now owned or hereafter
     acquired  by  such  Assignor  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,

<PAGE>

     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);

          (d)  All presently existing and future agreements entered into between
     such  Assignor and any third party that provide for the acquisition by such
     Assignor 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;
                                             ----------

          (e)  The Hydrocarbons (including inventory) which are in, under, upon,
     produced  or  to  be  produced  from  or  attributable  to  the  Lands;

          (f)  The  Accounts  and  Contract  Rights;

          (g)  The  Operating  Equipment;

          (h)  The  Well  Data;

          (i)  The  rights  and security interests of such Assignor held by such
     Assignor  to  secure  the  obligation  of  the  first  purchaser to pay the
     purchase  price  of  the  Hydrocarbons;

          (j)  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
     such  Assignor  may,  at  any  time,  have  or  be  entitled;  and

          (k)  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
     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 Laurus' Lien,
being  hereinafter  called  the  "Collateral".
                                  ----------

     As  used  herein,  the  following  terms shall have the following meanings:

     "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  any  Assignor  now or hereafter
existing,  or  hereafter  acquired  by,  or  on  behalf of, any Assignor, or any
Assignor's  successors  in  interest, relating to or arising from the ownership,
operation  and  development of the Collateral 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 Collateral or any

<PAGE>

units or pooled interest units in which all or a portion of the Collateral forms
a  part,  together  with  all  accounts  and  proceeds  accruing to any Assignor
attributable  to  the  sale  of Hydrocarbons produced from the Collateral or any
units or pooled interest units in which all or a portion of the Collateral forms
a  part.

     "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 and shall include any
      -----                                      ---------
lands,  the  description of  which  is contained in Exhibit A or 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  ExhibitA  by  reference.

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

     "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,  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  Collateral,  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
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.

<PAGE>

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

     "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  any  Assignor or to which any
Assignor  has  access  relating  to  the Lands and/or any wells located thereon.

     2.  Except  as  otherwise defined herein, all capitalized terms used herein
shall have the meanings provided such terms in the Securities Purchase Agreement
referred  to  below.  All items of Collateral which are defined in the UCC shall
have  the  meanings  set  forth  in the UCC. For purposes hereof, the term "UCC"
means  the  Uniform  Commercial  Code  as the same may, from time to time, be in
effect  in the State of New York; provided, that in the event that, by reason of
mandatory  provisions  of  law,  any  or  all  of  the attachment, perfection or
priority  of,  or  remedies  with  respect  to, Laurus' security interest in any
Collateral  is  governed  by  the  Uniform  Commercial  Code  as  in effect in a
jurisdiction  other  than  the  State of New York, the term "UCC" shall mean the
Uniform  Commercial Code as in effect in such other jurisdiction for purposes of
the provisions of this Master Agreement relating to such attachment, perfection,
priority or remedies and for purposes of definitions related to such provisions;
provided  further,  that  to  the extent that the UCC is used to define any term
herein  and  such term is defined differently in different Articles or Divisions
of the UCC, the definition of such term contained in Article or Division 9 shall
govern.

     3.  The term "Obligations" as used herein shall mean and include all debts,
liabilities  and obligations owing by each Assignor to Laurus arising under, out
of,  or in connection with: (i) that certain Securities Purchase Agreement dated
as  of  the  date  hereof by and between the Company and Laurus (the "Securities
Purchase  Agreement"), (ii) the Related Agreements referred to in the Securities
Purchase Agreement, (iii) each guaranty agreement made from time to time by each
Assignor  in favor of Laurus, (iv) the Securities Purchase Agreement dated as of
June 30, 2005 by and between New Century Energy Corp. and Laurus (the "June 2005
Securities  Purchase  Agreement"), (v) each Related Agreement referred to in the
June  2005 Securities Purchase Agreement, (vi) the Securities Purchase Agreement
dated  as  of September 19, 2005 by and between the New Century Energy Corp. and
Laurus  (the  "September  2005  Securities  Purchase  Agreement") and (vii) each
Related  Agreement  referred  to  in  the  September  2005  Securities  Purchase
Agreement  (each,  a  "September 2005 Related Agreement") (each of the foregoing
documents,  instruments  and  agreements,  as  each  may  be  amended, modified,
restated  or supplemented from time to time, collectively, the "Documents"), and
in  connection  with  any  documents,  instruments  or agreements relating to or
executed  in  connection  with  the  Documents  or any documents, instruments or
agreements  referred  to  therein or otherwise, and in connection with any other
indebtedness,  obligations  or  liabilities  of  each  such  Assignor to Laurus,
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,
including, without limitation, obligations and indebtedness of each Assignor for
post-petition  interest,  fees,  costs  and  charges  that  accrue  after  the
commencement  of  any  case  by  or  against such Assignor under any bankruptcy,
insolvency,  reorganization or like proceeding (collectively, the "Debtor Relief
Laws")  in  each  case, irrespective of the genuineness, validity, regularity or
enforceability  of  such Obligations, or of any instrument evidencing any of the

<PAGE>

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 the Obligations in any case commenced by or against any Assignor
under  any  Debtor  Relief  Law.

     4.  Each  Assignor  hereby  jointly  and severally represents, warrants and
covenants  to  Laurus  that:

          (a)  it is a corporation, partnership or limited liability company, as
     the  case  may  be, validly existing, in good standing and formed under the
     respective  laws  of its jurisdiction of formation set forth on Schedule B,
                                                                     ----------
     and  each  Assignor  will  provide  Laurus  thirty (30) days' prior written
     notice  of  any  change in any of its respective jurisdiction of formation;

          (b) its legal name is as set forth in its Certificate of Incorporation
     or  other  organizational  document  (as applicable) as amended through the
     date  hereof  and  as  set  forth on Schedule B, and it will provide Laurus
                                          ----------
     thirty  (30)  days'  prior  written notice of any change in its legal name;

          (c) its organizational identification number (if applicable) is as set
     forth  on  Schedule B  hereto, and it will provide Laurus thirty (30) days'
                ----------
     prior  written  notice  of  any change in its organizational identification
     number;

          (d) it is the lawful owner of its Collateral and it has the sole right
     to grant a security interest therein and will defend the Collateral against
     all  claims  and  demands  of  all  persons  and  entities;

          (e)  it  will  keep  its Collateral free and clear of all attachments,
     levies, taxes, liens, security interests and encumbrances of every kind and
     nature  ("Encumbrances"),  except (i) Encumbrances securing the Obligations
     and  (ii)  Encumbrances  securing indebtedness of each such Assignor not to
     exceed  $50,000 in the aggregate for all such Assignors so long as all such
     Encumbrances  are  removed  or  otherwise  released to Laurus' satisfaction
     within  ten  (10)  days  of  the  creation  thereof;

          (f)  it  will,  at its and the other Assignors' joint and several cost
     and  expense keep the Collateral in good state of repair (ordinary wear and
     tear  excepted)  and will not waste or destroy the same or any part thereof
     other  than ordinary course discarding of items no longer used or useful in
     its  or  such  other  Assignors'  business;

          (g)  it  will  not,  without  Laurus'  prior  written  consent,  sell,
     exchange,  lease  or  otherwise dispose of any Collateral, whether by sale,
     lease or otherwise, except for the sale of inventory in the ordinary course
     of  business  and for the disposition or transfer in the ordinary course of
     business  during  any  fiscal  year  of  obsolete and worn-out equipment or
     equipment  no  longer  necessary for its ongoing needs, having an aggregate
     fair  market  value  of  not more than $25,000 and only to the extent that:

               (i)  the  proceeds  of  each such disposition are used to acquire
          replacement  Collateral  which  is  subject  to Laurus' first priority

<PAGE>

          perfected  security  interest, or are used to repay the Obligations or
          to  pay  general  corporate  expenses;  or

               (ii)  following  the  occurrence  of  an  Event  of Default which
          continues  to exist the proceeds of which are remitted to Laurus to be
          held  as  cash  collateral  for  the  Obligations;

          (h)  it  will  insure or cause the Collateral to be insured in Laurus'
     name (as additional insured and loss payee) against loss or damage by fire,
     theft,  burglary,  pilferage,  loss  in  transit  and such other hazards as
     Laurus  shall  specify in amounts and under policies by insurers acceptable
     to  Laurus  and all premiums thereon shall be paid by such Assignor and the
     policies  delivered  to Laurus. If any such Assignor fails to do so, Laurus
     may  procure  such  insurance  and  the  cost  thereof  shall  be  promptly
     reimbursed  by  the  Assignors, jointly and severally, and shall constitute
     Obligations;

          (i)  it  will  at  all  reasonable  times  allow  Laurus  or  Laurus'
     representatives  free  access  to  and  the  right  of  inspection  of  the
     Collateral;

          (j)  such  Assignor  (jointly  and severally with each other Assignor)
     hereby  indemnifies and saves Laurus harmless from all loss, costs, damage,
     liability and/or expense, including reasonable attorneys' fees, that Laurus
     may  sustain or incur to enforce payment, performance or fulfillment of any
     of  the  Obligations  and/or  in  the  enforcement  of this Master Security
     Agreement  or  in  the  prosecution  or defense of any action or proceeding
     either  against Laurus or any Assignor concerning any matter growing out of
     or  in  connection  with  this Master Security Agreement, and/or any of the
     Obligations  and/or  any  of  the Collateral except to the extent caused by
     Laurus'  own  gross  negligence  or  willful misconduct (as determined by a
     court  of  competent jurisdiction in a final and nonappealable decision) In
     addition,  each  Assignor hereby indemnifies and saves Laurus harmless from
     any  claim, cost, expense, liability, obligation, loss or damage (including
     reasonable  legal  fees)  of any nature, incurred by or imposed upon Laurus
     which results, arises out of or is based upon: (i) any misrepresentation by
     any Assignor or breach of any warranty by any Assignor in this Agreement or
     any  Document  or  any  agreement  between any Assignor and Laurus relating
     hereto  or  thereto;  or  (ii)  any breach or default in performance by the
     Assignors  of  any covenant or undertaking to be performed by the Assignors
     hereunder or under any Document, or any other agreement entered into by any
     Assignor  and  Laurus relating hereto or thereto or (iii) (a) the violation
     of  any  local,  state  or  federal  law,  rule or regulation pertaining to
     environmental  regulation,  contamination  or  clean-up  (collectively,
     "Environmental  Laws"),  including  without  limitation,  the Comprehensive
     Environmental  Response,  Compensation and Liability Act of 1980 (42 U.S.C.
     Sec.9601  et  seq. and 40 CFR Sec.302.1 et seq.), the Resource Conservation
     and  Recovery  Act  of 1976 (42 U.S.C. Sec.6901 et seq.), the Federal Water
     Pollution  Control Act (33 U.S.C. Sec.1251 et seq., and 40 CFR Sec.116.1 et
     seq.),  the  Hazardous  Materials Transportation Act (49 U.S.C. Sec.1801 et
     seq.) and the regulations promulgated pursuant to said laws, all as amended
     and relating to or affecting any Assignor and/or any Assignor's properties,
     whether  or  not  caused  by or within the control of Laurus and/or (b) the
     presence,  release  or threat of release of any hazardous, toxic or harmful
     substances,  wastes,  materials,  pollutants  or  contaminants  (including,

<PAGE>

     without  limitation,  asbestos,  polychlorinated  biphenyls,  petroleum
     products,  flammable  explosives,  radioactive  materials,  infectious
     substances  or  raw  materials which include hazardous constituents) or any
     other  substances or raw materials which are included under or regulated by
     Environmental  Laws  on,  in,  under or affecting all or any portion of any
     property of any Assignor or any surrounding areas, regardless of whether or
     not  caused  by  or  within  the  control  of  Laurus;

          (k)  it  will promptly, and in any event within five (5) business days
     after  the  same  is  acquired  by it, notify Laurus of any commercial tort
     claim  acquired  by  it  and  unless  otherwise  consented to in writing by
     Laurus,  it shall enter into a supplement to this Master Security Agreement
     granting  to  Laurus a security interest in such commercial tort claim; and

          (l)  On  or  prior  to  the  Closing  Date,  each  Assignor  will  (x)
     irrevocably  direct  all  of  its  present  and  future Account Debtors (as
     defined  below)  and  other  persons or entities obligated to make payments
     constituting  Collateral  to  make  such payments directly to the lockboxes
     maintained  by such Assignor (the "Lockboxes") with North Fork Bank or such
     other  financial  institution  accepted  by  Laurus  in  writing  as may be
     selected  by the Company (the "Lockbox Bank") (each such direction pursuant
     to  this  clause  (x),  a  "Direction  Notice") and (y) provide Laurus with
     copies  of  each  Direction  Notice,  each  of which shall be agreed to and
     acknowledged  by  the  respective  Account  Debtor.  Upon  receipt  of such
     payments,  the  Lockbox  Bank  shall  agree to deposit the proceeds of such
     payments in that certain deposit account maintained at the Lockbox Bank and
     evidenced by the account name of Gulf Coast Oil Corporation and the account
     number  of 270-4057658, or such other deposit account accepted by Laurus in
     writing  (the  "Lockbox Deposit Account"). On or prior to the Closing Date,
     the  Company  shall and shall cause the Lockbox Bank to enter into all such
     documentation  acceptable  to Laurus pursuant to which, among other things,
     the  Lockbox  Bank  agrees  to,  following  notification  by  Laurus (which
     notification Laurus shall only give following the occurrence and during the
     continuance  of  an Event of Default), comply only with the instructions or
     other  directions  of Laurus concerning the Lockbox and the Lockbox Deposit
     Account.  All  of  each  Assignor's  invoices, account statements and other
     written  or  oral  communications  directing,  instructing,  demanding  or
     requesting  payment  of  any  Account  (as hereinafter defined) of any such
     Assignor  or  any  other amount constituting Collateral shall conspicuously
     direct  that  all  payments be made to the Lockbox or such other address as
     Laurus  may  direct  in  writing.  If,  notwithstanding the instructions to
     Account  Debtors,  any  Assignor receives any payments, such Assignor shall
     immediately  remit  such  payments  to the Lockbox Deposit Account in their
     original  form  with  all  necessary  endorsements.  Until so remitted, the
     Assignors  shall hold all such payments in trust for and as the property of
     Laurus and shall not commingle such payments with any of its other funds or
     property. For the purpose of this Master Security Agreement, (x) "Accounts"
     shall  mean all "accounts", as such term is defined in the UCC as in effect
     in  the  State  of  New  York  on  the  date hereof, now owned or hereafter
     acquired  by any Assignor and (y) "Account Debtor" shall mean any person or
     entity  who  is  or  may be obligated with respect to, or on account of, an
     Account.

<PAGE>

     5.  The  occurrence  of  any  of  the  following events or conditions shall
constitute  an  "Event  of  Default"  under  this  Master  Security  Agreement:

          (a)  any  covenant  or  any  other  term  or  condition of this Master
     Security  Agreement is breached in any material respect and such breach, if
     subject to cure, shall continue for a period of fifteen (15) days after the
     occurrence  thereof;

          (b)  any representation or warranty, or statement made or furnished to
     Laurus  under  this  Master  Security  Agreement  by any Assignor or on any
     Assignor's  behalf  should  prove to any time be false or misleading in any
     material  respect  on  the  date  as  of  which  made  or  deemed  made;

          (c)  the  loss,  theft,  substantial  damage,  destruction,  sale  or
     encumbrance  to  or  of  any  of  the Collateral or the making of any levy,
     seizure  or  attachment  thereof  or  thereon  except  to  the  extent:

               (i)  such loss is covered by insurance proceeds which are used to
          replace  the  item  or  repay  Laurus;  or

               (ii)  said  levy,  seizure  or  attachment  does  not  secure
          indebtedness  in excess of $100,000 in the aggregate for all Assignors
          and  such  levy,  seizure  or attachment has been removed or otherwise
          released  within  ten  (10)  days  of  the  creation  or the assertion
          thereof;

          (d)  any  Assignor shall become insolvent, cease operations, dissolve,
     terminate  its  business  existence,  make an assignment for the benefit of
     creditors,  suffer  the  appointment  of a receiver, trustee, liquidator or
     custodian  of  all  or  any  part  of  any  Assignor's  property;

          (e)  any  proceedings  under any bankruptcy or insolvency law shall be
     commenced  by or against any Assignor and if commenced against any Assignor
     shall  not  be  dismissed  within  thirty  (30)  days;

          (f) any Assignor shall repudiate, purport to revoke or fail to perform
     any  of  its  obligations  under any Note (after passage of applicable cure
     period,  if  any)  or  any  document,  instrument  or agreement executed in
     connection  therewith;  or

          (g)  an  Event  of Default (or similar term) shall have occurred under
     and  as  defined  in  any Document or any document, instrument or agreement
     entered  into  in  connection  therewith.

     6.  Upon the occurrence of any Event of Default and at any time thereafter,
Laurus  may declare all Obligations immediately due and payable and Laurus shall
have  the  remedies  of  a secured party provided in the UCC as in effect in the
State  of New York, this Agreement and other applicable law. Upon the occurrence
of  any  Event of Default and at any time thereafter, Laurus will have the right
to  receive  one-hundred  percent  of  all  accounts receivable of each Company,
whether  attributable  to  oil,  gas, other hydrocarbon production or otherwise,
take  possession  of  the  Collateral  and  to  maintain  such possession on any

<PAGE>

Assignor's  premises  or  to  remove  the Collateral or any part thereof to such
other  premises  as Laurus may desire. Upon Laurus' request, each Assignor shall
assemble or cause the Collateral to be assembled and make it available to Laurus
at  a place designated by Laurus. If any notification of intended disposition of
any Collateral is required by law, such notification, if mailed, shall be deemed
properly  and  reasonably  given  if  mailed  at least ten (10) days before such
disposition,  postage  prepaid,  addressed  to the applicable Assignor either at
such  Assignor's  address  shown  herein  or at any address appearing on Laurus'
records  for  such  Assignor.  Any  proceeds  of  any  disposition of any of the
Collateral  shall  be  applied  by  Laurus  to  the  payment  of all expenses in
connection with the sale of the Collateral, including reasonable attorneys' fees
and  other  legal  expenses  and  disbursements  and  the reasonable expenses of
retaking, holding, preparing for sale, selling, and the like, and any balance of
such  proceeds may be applied by Laurus toward the payment of the Obligations in
such order of application as Laurus may elect, and each Assignor shall be liable
for  any  deficiency.  For  the avoidance of doubt, following the occurrence and
during  the  continuance of an Event of Default, Laurus shall have the immediate
right  to withdraw any and all monies contained in the Restricted Account or any
other  deposit accounts in the name of any Assignor and controlled by Laurus and
apply  same to the repayment of the Obligations (in such order of application as
Laurus may elect). The parties hereto each hereby agree that the exercise by any
party  hereto  of any right granted to it or the exercise by any party hereto of
any  remedy  available  to  it (including, without limitation, the issuance of a
notice  of  redemption,  a borrowing request and/or a notice of default, in each
case,  hereunder, under the Documents which has been publicly filed with the SEC
shall  not  constitute confidential information and no party shall have any duty
to  the  other  party  to  maintain  such  information  as  confidential.

     7. If any Assignor defaults in the performance or fulfillment of any of the
terms,  conditions,  promises,  covenants,  provisions  or  warranties  on  such
Assignor's  part  to  be performed or fulfilled under or pursuant to this Master
Security  Agreement,  Laurus  may,  at  its  option without waiving its right to
enforce this Master Security Agreement according to its terms, immediately or at
any  time  thereafter and without notice to any Assignor, perform or fulfill the
same  or  cause  the  performance or fulfillment of the same for each Assignor's
joint  and  several  account  and  at each Assignor's joint and several cost and
expense, and the cost and expense thereof (including reasonable attorneys' fees)
shall  be  added to the Obligations and shall be payable on demand with interest
thereon  at the highest rate permitted by law, or, at Laurus' option, debited by
Laurus  from the Restricted Account or any other deposit accounts in the name of
any  Assignor  and  controlled  by  Laurus.

     8. Each Assignor appoints Laurus, any of Laurus' officers, employees or any
other  person  or  entity whom Laurus may designate as such Assignor's attorney,
with  power  to  execute  such  documents  in each such Assignor's behalf and to
supply  any  omitted  information  and  correct  patent  errors in any documents
executed  by  any  Assignor  or  on  any  Assignor's  behalf;  to file financing
statements  against  such  Assignor  covering the Collateral (and, in connection
with  the  filing  of  any such financing statements, describe the Collateral as
"all  assets  and  all  personal  property,  whether  now owned and/or hereafter
acquired"  (or  any  substantially  similar  variation  thereof));  to sign such
Assignor's  name  on  public  records;  and  to  do all other things Laurus deem
necessary  to  carry  out  this  Master Security Agreement. Each Assignor hereby
ratifies  and  approves  all  acts  of  the  attorney and neither Laurus nor the
attorney  will  be  liable  for  any acts of commission or omission, nor for any

<PAGE>

error  of  judgment  or  mistake  of  fact or law other than gross negligence or
willful  misconduct  (as  determined  by  a court of competent jurisdiction in a
final  and  non-appealable decision). This power being coupled with an interest,
is  irrevocable  so  long  as  any  of  the  Obligations  remain  unpaid.

     9.  No  delay or failure on Laurus' part in exercising any right, privilege
or  option  hereunder  shall  operate as a waiver of such or of any other right,
privilege,  remedy  or  option,  and no waiver whatever shall be valid unless in
writing,  signed by Laurus and then only to the extent therein set forth, and no
waiver  by  Laurus of any default shall operate as a waiver of any other default
or  of  the  same  default  on  a  future  occasion.  Laurus'  books and records
containing  entries  with  respect  to  the  Obligations  shall be admissible in
evidence  in  any  action or proceeding, shall be binding upon each Assignor for
the  purpose  of  establishing  the items therein set forth and shall constitute
prima  facie  proof  thereof.  Laurus shall have the right to enforce any one or
more  of  the  remedies  available  to  Laurus,  successively,  alternately  or
concurrently.  Each  Assignor  agrees  to  join  with  Laurus  in executing such
documents  or  other  instruments  to  the  extent  required  by the UCC in form
satisfactory  to  Laurus and in executing such other documents or instruments as
may  be  required  or  deemed  necessary  by Laurus for purposes of affecting or
continuing  Laurus'  security  interest  in  the  Collateral.

     10.  The  Assignors  shall  jointly  and  severally  pay  all  of  Laurus'
out-of-pocket costs and expenses, including reasonable fees and disbursements of
in-house  or outside counsel and appraisers, in connection with the preparation,
execution  and delivery of the Documents, and in connection with the prosecution
or  defense  of  any action, contest, dispute, suit or proceeding concerning any
matter in any way arising out of, related to or connected with any Document. The
Assignors  shall  also jointly and severally pay all of Laurus' reasonable fees,
charges,  out-of-pocket  costs and expenses, including fees and disbursements of
counsel  and  appraisers,  in connection with (a) the preparation, execution and
delivery of any waiver, any amendment thereto or consent proposed or executed in
connection  with  the  transactions  contemplated  by the Documents, (b) Laurus'
obtaining performance of the Obligations under the Documents, including, but not
limited to the enforcement or defense of Laurus' security interests, assignments
of  rights  and  liens  hereunder as valid perfected security interests, (c) any
attempt  to  inspect,  verify,  protect,  collect,  sell, liquidate or otherwise
dispose  of  any Collateral, (d) any appraisals or re appraisals of any property
(real  or  personal) pledged to Laurus by any Assignor as Collateral for, or any
other  Person  as  security  for,  the  Obligations  hereunder  and  (e)  any
consultations  in connection with any of the foregoing. The Assignors shall also
jointly  and  severally pay Laurus' customary bank charges for all bank services
(including wire transfers) performed or caused to be performed by Laurus for any
Assignor  at  any  Assignor's  request or in connection with any Assignor's loan
account  (if  any)  with  Laurus.  All such costs and expenses together with all
filing,  recording  and search fees, taxes and interest payable by the Assignors
to  Laurus shall be payable on demand and shall be secured by the Collateral. If
any  tax  by  any nation or government, any state or other political subdivision
thereof,  and  any  agency,  department  or  other  entity exercising executive,
legislative,  judicial,  regulatory or administrative functions of or pertaining
to government (each, a "Governmental Authority") is or may be imposed on or as a
result  of  any transaction between any Assignor, on the one hand, and Laurus on
the  other  hand,  which  Laurus  is  or may be required to withhold or pay, the
Assignors  hereby  jointly  and  severally indemnify and hold Laurus harmless in
respect  of such taxes, and the Assignors will repay to Laurus the amount of any
such  taxes  which  shall  be  charged  to the Assignors' account; and until the

<PAGE>

Assignors  shall  furnish  Laurus with indemnity therefor (or supply Laurus with
evidence  satisfactory to it that due provision for the payment thereof has been
made),  Laurus may hold without interest any balance standing to each Assignor's
credit  (if  any)  and  Laurus shall retain its liens in any and all Collateral.

     11.  THIS  MASTER SECURITY AGREEMENT 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  LAWS.  All  of  the  rights,  remedies,  options,  privileges and
elections  given  to  Laurus  hereunder  shall  inure  to the benefit of Laurus'
successors  and  assigns. The term "Laurus" as herein used shall include Laurus,
any  parent  of  Laurus', any of Laurus' subsidiaries and any co-subsidiaries of
Laurus'  parent,  whether now existing or hereafter created or acquired, and all
of the terms, conditions, promises, covenants, provisions and warranties of this
Agreement  shall  inure  to the benefit of each of the foregoing, and shall bind
the  representatives,  successors  and  assigns  of  each  Assignor.

     12.  Each  Assignor  hereby  consents  and agrees that the state of 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 Assignor, on
the  one hand, and Laurus, on the other hand, pertaining to this Master Security
Agreement  or  to  any  matter arising out of or related to this Master Security
Agreement, provided, that Laurus and each Assignor 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
Master  Security  Agreement  shall  be deemed or operate to preclude Laurus from
bringing suit or taking other legal action in any other jurisdiction to collect,
the  Obligations,  to  realize  on  the Collateral or any other security for the
Obligations,  or  to enforce a judgment or other court order in favor of Laurus.
Each  Assignor expressly submits and consents in advance to such jurisdiction in
any  action or suit commenced in any such court, and each Assignor hereby waives
any  objection  which  it  may  have  based  upon lack of personal jurisdiction,
improper  venue  or  forum  non conveniens. Each Assignor hereby waives personal
                     -----  --- ----------
service of the summons, complaint and other process issues 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 assignor at the address
set forth on the signature lines hereto and that service so made shall be deemed
completed  upon  the  earlier of such Assignor's actual receipt thereof or three
(3)  days  after  deposit  in  the  U.S.  mails,  proper  postage  prepaid.

     The parties desire that their disputes be resolved by a 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,  suite,  or  proceeding brought to resolve any
dispute,  whether arising in contract, tort, or otherwise between Laurus, and/or
any  Assignor  arising  out  of,  connected  with,  related or incidental to the
relationship  established  between  them in connection with this Master Security
Agreement  or  the  transactions  related  hereto.

     13.  It  is understood and agreed that any person or entity that desires to
become  an  Assignor  hereunder, or is required to execute a counterpart of this
Master  Security Agreement after the date hereof pursuant to the requirements of
any  Document,  shall  become  an  Assignor hereunder by (x) executing a Joinder
Agreement  in  form  and  substance  satisfactory  to  Laurus,  (y)  delivering
supplements  to  such  exhibits  and  annexes  to such Documents as Laurus shall

<PAGE>

reasonably  request  and  (z)  taking  all  actions  as specified in this Master
Security  Agreement  as  would  have  been taken by such Assignor had it been an
original  party  to  this  Master  Security  Agreement,  in  each  case with all
documents  required  above  to be delivered to Laurus and with all documents and
actions  required  above  to  be taken to the reasonable satisfaction of Laurus.

     14.  All notices from Laurus to any Assignor shall be sufficiently given if
mailed  or  delivered  to  such  Assignor's  address  set  forth  below.

<PAGE>

     15.  This Master Security Agreement may be executed by facsimile signatures
and  in  any number of counterparts, each of which shall be an original, but all
of  which  together  shall  constitute  one  agreement.

                          Very  truly  yours,

                          GULF  COAST  OIL  CORPORATION

                          By: /s/ Edward R. DeStefano
                             -------------------------------------
                          Name: Edward R. DeStefano
                               -----------------------------------
                          Title:   President
                                ----------------------------------
                          Address:  5851  San  Felipe,  Suite  775
                          Houston,  TX  77057

                          NEW  CENTURY  ENERGY  CORP.

                          By: /s/ Edward R. DeStefano
                             -------------------------------------
                          Name: Edward R. DeStefano
                               -----------------------------------
                          Title:   President
                                ----------------------------------
                          Address:  5851  San  Felipe,  Suite  775
                          Houston,  TX  77057

                          CENTURY  RESOURCES,  INC.

                          By: /s/ Edward R. DeStefano
                             -------------------------------------
                          Name: Edward R. DeStefano
                               -----------------------------------
                          Title:   President
                                ----------------------------------
                          Address:  5851  San  Felipe,  Suite  775
                          Houston,  TX  77057

                          ACKNOWLEDGED:

                          LAURUS  MASTER  FUND,  LTD.

                          By: /s/ Eugene Grin
                             -------------------------------------
                          Name: Eugene Grin
                               -----------------------------------
                          Title:  Director
                                ----------------------------------
                          Address:  c/o Laurus Capital Management LLC
                          825 Third Avenue
                          New York, New York 10022

<PAGE>

                                    SCHEDULEA
                                    ---------

                             COMMERCIAL TORT CLAIMS
                             ----------------------

                                      None

<PAGE>

                                   SCHEDULE B
                                   ----------

                                Jurisdiction  of     Organization Identification
           Entity                  Formation                   Number
  --------------------------    ----------------      --------------------------
  Gulf Coast Oil Corporation       Delaware                   4143411

  New Century Energy Corp.         Colorado                 20031402340

  Century Resources, Inc.          Delaware                   2029277

<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]