Document:

AMENDED AND RESTATED REVOLVING CREDIT NOTE
                   ------------------------------------------

$10,000,000.00                   Houston, Texas              September___,  2005

     PETROSEARCH  ENERGY CORPORATION, A NEVADA CORPORATION, ("Maker"), for value
received,  agrees  to  pay  to  the order of FORTUNA ENERGY, L.P. (herein called
"Lender"  which term shall herein in every instance refer to the owner or holder
of  this  Note),  at  P.O. Box 9109, Newport Beach, California 92658, or at such
other place as Lender may hereafter designate in writing, in lawful money of the
United  States  of  America, the principal sum of TEN MILLION AND NO/100 DOLLARS
($10,000,000.00),  or  so much thereof as may be advanced and/or readvanced from
time  to  time by Lender to Maker under the terms and limitations of the Amended
and  Restated  Revolving  Credit  Agreement  of even date between Lender, Maker,
Anadarko  Petrosearch,  L.L.C.  and  Guidance  Petrosearch, L.L.C. (the "Amended
RCA"),  together  with interest accruing during the term hereof on the principal
balance  from time to time outstanding until paid, at an annual rate of interest
equal to the prime rate of interest published by The Wall Street Journal, as the
same may change from time to time ("Wall Street Journal Prime Rate"), plus three
percent  (3%).  Interest  shall  be  calculated on the average daily outstanding
principal  balance.  Upon  Maturity  (defined  hereinbelow)  or upon an Event of
Default  (defined  hereinbelow)  by  Maker, the principal balance hereof and all
accrued  but  unpaid  interest  shall  bear  interest at the rate of Wall Street
Journal  Prime Rate, as the same may change from time to time, plus nine percent
(9.0%)  per  annum.

     This  Note  is  intended  as  a  revolving  credit  loan  more particularly
described  in  a certain Amended and Restated Revolving Credit Agreement of even
date  (the  "Amended  RCA")  under  which  the  principal may be repaid prior to
Maturity  (defined  herein)  without  penalty  in  minimum  principal amounts of
$100,000.00  or  more  each  in  accordance  with  and  subject to the terms and
conditions  set  forth  in  the  Amended  RCA.

     For purposes hereof, "Maturity" shall mean the earlier to occur of April 1,
2008,  or  the  date  on  which  the  entire outstanding balance under this Note
becomes due and payable by acceleration of Lender, at the election of Lender, as
a  result  of an Event of Default (defined below) subject to the applicable cure
period  for  such  event  giving  rise  to  the  Event  of  Default.

     The  principal  to  be advanced under this Note may be drawn by Maker until
October  1, 2007 in accordance with the Schedule of Advances attached hereto and
made  a  part  hereof,  subject  to the Minimum Collateral Coverage Requirements
described in Section 1.6 of the Amended RCA.  Principal repaid may be readvanced
subject  to  the  Minimum  Collateral  Coverage  Requirement  limitations.  Each
Advance requested by Maker other than the initial Advance shall be preceded by a
20-day  written  request  (accompanied  by  a  statement  of the proposed use of
proceeds) to Lender and shall be funded by Lender on the twenty-first (21st) day
following  the  request.  If  the 21st day falls on a Saturday, Sunday or public
holiday,  the  said  funding  shall  occur  on  the next business day of Lender.
Unless  otherwise  agreed  by  Lender,  draw  requests  shall  be funded no more
frequently  than  monthly.

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     The principal and interest under this Note shall be paid by Maker to Lender
     as  follows:

     1)   As  to each specific principal Advance drawn by Maker hereunder, Maker
          shall  pay  interest-only installments monthly to Lender commencing on
          the first day of the calendar month following the date of the specific
          Advance  and  continuing  on  the same calendar day of each succeeding
          month  thereafter  for a total of six (6) monthly interest payments if
          the  specific  Advance  by  Lender is made between the first (1st) and
          fifteenth (15th) calendar day of a month, and for a total of seven (7)
          monthly  interest  payments  if the specific Advance is made after the
          fifteenth  (15th) calendar day of a month and prior to the first (1st)
          calendar  day  of  the  following  month.

     2)   As  to  each  specific principal Advance drawn by Maker, commencing on
          the  first  day  of  the  calendar  month following the last scheduled
          interest-only  payment  (whether  the  interest only period is six (6)
          months  or  seven  (7)  months  as set forth above and unless Maturity
          occurs  on  or prior to such date) and continuing on the same calendar
          day  of  each  succeeding  month thereafter until Maturity (as defined
          above), Maker shall pay monthly installments of principal based upon a
          30-month  amortization  of  that  specific Advance (i.e. 1/30th of the
          specific  principal  Advance shall be paid monthly), together with the
          monthly  accrued  interest  on  that  specific  Advance  as  of  the
          installment  due  date  for that specific Advance for twenty-four (24)
          months  or  until  Maturity (as defined above), whichever shall be the
          earlier  to  occur,  at  which time the entire balance of the specific
          Advance  shall  become  due  and  payable.

     3)   At  Maturity  (as defined above), all outstanding and unpaid principal
          and  accrued  interest  shall  be  paid  by  Maker  to  Lender.

     If  any  payment  on  this  Note shall become due on a Saturday, Sunday, or
public  holiday under the laws of the State of California on which Lender is not
open  for  business,  such payment shall be made on the next succeeding business
day of Lender, unless the effect of such extension would be to carry the payment
over  to the next calendar month, in which case such payment shall be due on the
preceding  business day of Lender, and such extension or reduction of time shall
in  such case be included in computing interest in connection with such payment.
All  sums required to paid hereunder shall be applied first to any sums expended
by  Lender  to  preserve or protect the collateral securing this Note (including
advances,  if  any,  made to pay the taxes thereon), then to any attorneys' fees
incurred  by  Lender  in  enforcing  the  provision of this Note or any document
securing  same,  if  any, then to accrued interest and then to principal, except
that  Maker  may  prepay  principal  as  set  forth  hereinabove.

     If  an  "Event of Default" (as defined below) be made in the performance of
Maker  under  this  Note,  then  the Lender may, at Lender's option, declare the
entire unpaid principal of and accrued interest on this Note immediately due and
payable  without  additional  notice,  demand  or  presentment, all of which are
hereby  waived,  and  upon  such declaration, the same shall become and shall be
immediately  due  and  payable,  and  the

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Lender  hereof  shall have the right to foreclose or otherwise enforce all liens
or  security  interests  securing payment hereof, or any part hereof, and offset
against  this  Note any sum or sums owed by the Lender to Maker.  Failure of the
Lender  to  exercise  this  option shall not constitute a waiver of the right to
exercise  the  same  upon  the occurrence of a subsequent Event of Default.  For
purposes  hereof,  an  Event  of  Default shall mean (1) the failure by Maker to
perform  any  obligation  to  pay  principal  or interest when due and after the
expiration  of  any  applicable  cure period provided herein, (2) the failure by
Maker to perform any other obligation or to pay any other sum when due under the
terms  of  the  Note,  the  Master  Deed(s)  of  Trust,  Mortgage, Assignment of
Production,  Security Agreement and Financing Statement (Multi-State Oil and Gas
Interests) (the "Deed(s) of Trust) as amended or supplemented, if applicable, as
modified  by  the  Modification and Extension of Master Deed of Trust, Mortgage,
Assignment of Production, Security Agreement and Financing Statement, the Pledge
Agreement(s),  the  Amended RCA and any other loan document after the expiration
of  any  applicable  cure  period,  or (3) Maker's assignment for the benefit of
creditors  or  becoming  the  subject of any voluntary or involuntary bankruptcy
proceeding.  With  respect  to  circumstances  (1)  or (2), the Event of Default
shall  not occur until Maker is first sent a notice of the default or deficiency
by  certified  mail,  postage  prepaid,  verifiable  facsimile  transmission  or
personal delivery, whereupon Maker shall have an opportunity to cure the default
or deficiency within five (5) days of the date of the notice if the default is a
monetary  default, and twenty (20) days of the date of the notice if the default
is  a  non-monetary  default,  all in accordance with Section 7.6 of the Amended
RCA.  For  purposes  hereof,  the  date  of the notice shall be deemed to be the
earlier  of  the  date of receipt of the notice of default by Maker, the date of
transmission of the verifiable facsimile or the date which is the third business
day  after  the  date  the  notice  is deposited, postage prepaid, in the United
States Mail addressed to Maker, whether or not said notice is received.  Maker's
mailing  address  shall  be  deemed  to be 675 Bering Drive, Suite 200, Houston,
Texas  77057  unless  and  until  Maker  provides  to Lender a written change of
address.

     Except as otherwise provided hereinabove, Maker and each surety, guarantor,
endorser and other party ever liable for payment of any sums of money payable on
this  Note  jointly  and  severally  waive  presentment  and demand for payment,
protest,  notice of protest and non-payment or dishonor, notice of acceleration,
notice  of  intent  to  accelerate,  notice  of  intent  to demand, diligence in
collecting,  and  grace,  and  consent  to all extensions without notice for any
period  or  periods  of  time  and  partial  payments, before or after maturity,
without  prejudice  to the Lender.  The Lender shall similarly have the right to
deal  in any way, at any time, with one or more of the foregoing parties without
notice  of  any  other party, and to grant any such party any extensions of time
for  payment  of  any  of  said  indebtedness,  or to release part or all of the
collateral securing this Note, or to grant any other indulgences or forbearances
whatsoever,  without  notice to any other party and without in any way affecting
the  personal  liability  of  any  party  hereunder.

     If  the  Lender expends any effort in any attempt to enforce payment of all
or  any part or installment of any sum due the Lender, or if this Note is placed
in  the  hands  of an attorney for collection, or if it is collected through any
legal  proceedings,  Maker  agrees  to

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<PAGE>
pay  all  reasonable collection costs and fees incurred by the Lender, including
reasonable  attorneys'  fees  and  expenses.

     This  Note  is  made and is deemed performable in Harris County, Texas, and
Maker  and  each  surety,  guarantor,  endorser  and other party ever liable for
payment  of  any sums of money payable on this Note, jointly and severally waive
the  right  to  be  sued  hereon  elsewhere.  This Note shall be governed by and
construed  in  accordance with the laws of the State of Texas and the applicable
laws  of  the  United  States  of  America.

     Any  check,  draft, money order or other instrument given in payment of all
or any portion hereof may be accepted by the Lender and handled in collection in
the  customary  manner,  but  the same shall not constitute payment hereunder or
diminish any rights of the Lender except to the extent that actual cash proceeds
of  such  instruments  are unconditionally received by the Lender and applied to
this  indebtedness  in  the  manner  elsewhere  herein  provided.

It  is  the  intention  of the parties hereto to comply strictly with applicable
usury  laws,  if any; accordingly, notwithstanding any provision to the contrary
in this Note or in any of the documents securing the payment hereof or otherwise
relating hereto, in no event shall this Note or such documents require or permit
the  payment,  taking,  reserving, receiving, collection or charging of any sums
constituting  interest  under  applicable  laws  which exceed the maximum amount
permitted  by  such laws.  If any such excess interest is called for, contracted
for, charged, taken, reserved, or received in connection with the loan evidenced
by this Note or in any of the documents securing the payment hereof or otherwise
relating  hereto, or in any communication by Lender or any other person to Maker
or  any  other  person, or in the event all or part of the principal or interest
hereof  shall be prepaid or accelerated, so that under any of such circumstances
or  under  any  other circumstances whatsoever the amount of interest contracted
for,  charged,  taken, reserved, or received on the amount of principal actually
outstanding from time to time under this Note shall exceed the maximum amount of
interest permitted by applicable usury laws, then in any such event it is agreed
as  follows: (i) the provisions of this paragraph shall govern and control, (ii)
neither the Maker nor any other person or entity now or hereafter liable for the
payment  of  this  Note shall be obligated to pay the amount of such interest to
the  extent  such  interest  is  in  excess  of  the  maximum amount of interest
permitted  by  applicable usury laws, (iii) any such excess which is or has been
received  notwithstanding  this  paragraph  shall  be  credited against the then
unpaid  principal  balance  hereof or, if this Note has been or would be paid in
full by such credit, refunded to Maker, and (iv) the provisions of this Note and
the documents securing the payment hereof and otherwise relating hereto, and any
communication  to  Maker,  shall  immediately be deemed reformed and such excess
interest  reduced, without the necessity of executing any other document, to the
maximum  lawful rate allowed under applicable laws as now or hereafter construed
by  courts  having  jurisdiction  hereof  or  thereof.  Without  limiting  the
foregoing,  all  calculations  of  the rate of interest contracted for, charged,
collected,  taken,  reserved,  or  received are intended to be applicable to and
spread  over  the  maximum term provided hereunder.  The terms of this paragraph
shall  be deemed to be incorporated in every loan document, security instrument,
and  communication  relating  to  this  Note  and  the  loan.

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<PAGE>
     To  the  extent  that  the  interest  rate  laws  of the State of Texas are
applicable  to  this  Note,  the  applicable interest rate ceiling is the weekly
ceiling (formerly the indicated rate ceiling) determined in accordance with Tex.
Rev.  Civ.  Stat., Title 79, Article 5069-1D.003, also codified at Texas Finance
Code, Section 303.301 (formerly Article 5069-1.01(a)(1), and, to the extent that
this  Note  is  deemed  an open end account as such term is defined in Tex. Rev.
Civ.  Stat.,  Title  79, Article 5069-1B.002(14), also codified at Texas Finance
Code  Section  301.001(3) (formerly Article 5069-1.01(f), the Lender retains the
right  to  modify  the  interest  rate  in  accordance  with  applicable  law.

     This  Note  is  intended  as  a  renewal extension and modification of that
certain  Revolving  Credit  Note from Maker to Lender dated October 15, 2004, in
the  original  principal  sum of $18,000,000.00, and is currently secured by (a)
those Master Deed(s) of Trust, Assignment of Production, Security Agreement, and
Financing  Statement  currently  of  record  in certain counties in Texas, North
Dakota  and  Oklahoma,  and  (b)  first and prior lien(s) on Maker's one hundred
percent  (100%)  membership  interest  (subject  to  the  after-payout  back-in
interests  of  the  subsidiary  directors  of  project  development  (formerly
presidents),  where applicable) in Anadarko Petrosearch and any other subsidiary
holding  legal  title to a Lease acquired with Lender's funds. This Note will be
further secured by, where applicable, and where existing Master Deed(s) of Trust
and/or  applicable  supplements  thereto  are  of record, (c) a Modification and
Extension of Master Deed of Trust, Assignment of Production, Security Agreement,
and  Financing Statement, recorded in each jurisdiction where an existing Master
Deed  of  Trust  is currently of record and (d) as to future properties acquired
utilizing  Lender's  funds  in jurisdictions in which a security document is not
currently  of  record,  a  Master  Deed(s)  of  Trust, Assignment of Production,
Security  Agreement,  and Financing Statement (or comparable document conforming
to  the  laws  of  the jurisdiction) creating a first and prior lien in favor of
Lender  on  the  properties  so acquired utilizing Lender's funds Advanced under
this  Note.

     This Note is dated as of the date set forth first above.  In the event of a
conflict  between  this  Note and the Amended RCA, the terms of the Amended  RCA
shall  be  deemed  controlling.

NOTICE  OF  NO  ORAL  AGREEMENTS.  THIS  DOCUMENT  AND  ALL OTHER LOAN DOCUMENTS
--------------------------------
RELATING  TO  THIS  LOAN OR REFERRED TO ABOVE TOGETHER CONSTITUTE A WRITTEN LOAN
AGREEMENT  WHICH  REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT
BE  CONTRADICTED  BY  EVIDENCE  OF  PRIOR,  CONTEMPORANEOUS,  OR SUBSEQUENT ORAL
AGREEMENTS  OF  THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES  RELATING  TO  THIS  LOAN.

                                   PETROSEARCH ENERGY CORPORATION

                                   By:
                                       ------------------------------------
                                        Richard D. Dole, President and C.E.O.

--------------------------------------------------------------------------------
                                        5AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT
                 -----------------------------------------------

     This  Amended  and Restated Revolving Credit Agreement (this "Amended RCA")
is  made  effective  as  of  ________________  , 2005 ("Effective Date"), by and
between  PETROSEARCH  ENERGY  CORPORATION,  A  NEVADA  CORPORATION [SUCCESSOR BY
MERGER  TO PETROSEARCH CORPORATION, A TEXAS CORPORATION] ("Borrower"),  ANADARKO
PETROSEARCH, L.L.C., A TEXAS LIMITED LIABILITY COMPANY ("Anadarko Petrosearch"),
GUIDANCE  PETROSEARCH,  L.L.C.,  A  TEXAS  LIMITED LIABILITY COMPANY  ("Guidance
Petrosearch")  and  FORTUNA  ENERGY,  L.P.,  A  CALIFORNIA  LIMITED  PARTNERSHIP
("Lender").

                                    RECITALS:

     A.     Effective  October  1, 2004, Lender, Borrower, Anadarko Petrosearch,
TK Petrosearch, and Guidance Petrosearch entered into a certain Revolving Credit
Agreement  (the  "Original  Credit Agreement") creating an $18,000,000.00 credit
facility  available  to  Borrower  and its subsidiaries to fund acquisitions and
development  of  its  oil  and  gas  leases in several states, including, Texas,
Oklahoma,  North  Dakota,  Montana  and  Mississippi.

     B.     Borrower,  with  the  consent  of  Lender, sold the assets of its TK
Petrosearch  subsidiary  to  a  third  party  effective  July  1,  2005.

     C.     Borrower has proposed to acquire and/or participate in ownership and
development  of  eight  (8) new prospects (the "Eight Prospect Package") with an
initial  capital  budget of $10,000,000.00 (the "Eight Prospect Capital Budget")
which  has  been  submitted  to  Lender  for  review and consideration.  Lender,
Borrower,  Anadarko  Petrosearch  and  Guidance  Petrosearch desire to amend and
restate  the  Original  Credit  Agreement to address the repayment terms for the
current  outstanding  indebtedness,  the  proposed funding of the Eight Prospect
Capital  Budget,  and the future advances, if any, under the credit facility for
other  future  prospects  made  available  to  Borrower.

                               TERMS OF AMENDMENT:

     NOW,  THEREFORE,  FOR  VALUE  RECEIVED,  the  sufficiency  of  which  is
acknowledged  by  the parties, the parties hereby amend and restate the Original
Credit  Agreement  as  follows:

                                    ARTICLE I

                    COMMITMENT USE OF PROCEEDS AND COLLATERAL
                    -----------------------------------------

     Section  1.1.     COMMITMENT/ADVANCES.  Subject to the terms and conditions
                       -------------------
of  this  Amended  RCA and beginning on the Effective Date, until the earlier of
the  maturity  of  the  revolving  loan,  as amended, Lender will make a loan to
Borrower  by  making  advances  of  good  funds  by  wire transfer to Borrower's
designated  bank  or  such  designated  third party recipient as the parties may
mutually  agree  upon  (the "Advances"), from time to time as limited by Section

<PAGE>
1.5  hereinbelow,  in such amounts as the Borrower may request up to the funding
limits  described  in  this  Amended  RCA, up to the maximum aggregate principal
amount  outstanding  at  any time during the term of the loan of TEN MILLION AND
NO/100  DOLLARS  ($10,000,000.00)[the  "Amended  and  Restated  Credit  Line"].
Attached  hereto  as  Schedule  1  is  the schedule of anticipated Advances (the
"Schedule  of  Advances")  pursuant  to  the  Eight  Prospect  Capital  Budget.

     Section  1.2     USE  OF  PROCEEDS.  Proceeds  of  the Amended and Restated
                      -----------------
Credit  Line  shall  be  used  only  to  finance:

          (a)     Past,  present,  or  future acquisitions of oil and gas leases
     (collectively,  if  acquired  in  whole  or  in part with Lender funds, the
     "Leases"),  including  all title and land work in Anadarko Petrosearch, all
     title  and land work related to the Eight Prospect Package (irrespective of
     the  entity  holding  title)  all  fees paid to governmental entities (i.e.
     filing  fees  and/or  tax  stamps),  bonus  consideration,  surface  damage
     payments,  prospect  acquisition  costs  such  as Barbee costs which accrue
     under  the  Prospect  Generation  Agreement  between  Borrower  and William
     Barbee,  associated  title,  geological,  and  engineering review, fees and
     payments  to  maintain  such  leases  such  as  delay  rentals;

          (b)     oil  and  gas drilling, reworking, production, transportation,
     marketing  and  plugging  activities  under  the  Leases,  and

          (c)     All  Lender  charges  and fees, including fees and expenses of
     legal  counsel  to  Lender.

     Section  1.3     OUTSTANDING LOAN BALANCE/REVOLVING CREDIT NOTE AMENDMENTS.
                      ---------------------------------------------------------
All  Advances  to  date under the Original Credit Agreement have been made under
the original Revolving Credit Note of the Borrower dated as of October 15, 2004,
payable  to  the  order of Lender, and providing for interest on the outstanding
principal  balance  as  advanced,  from time to time, at the rate of six percent
(6%)  per  annum.  The  parties  stipulate  and agree that as of and through the
Effective  Date  above,  the  outstanding and unpaid principal balance under the
original Revolving Credit Note is as follows:  $825,000.00, and that the accrued
interest  through  said  Effective  Date  which  has  accrued under the original
Revolving  Credit  Note  will  be paid upon execution of this Amended RCA.   The
parties  hereby  amend and restate the Note terms as follows and as set forth in
Sections  1.4, 1.5, 1.6, 1.7, 1.8 and 1.9 below, which shall be evidenced by the
form  of  Amended  and  Restated  Note attached hereto and made a part hereof as
Exhibit  "A"  (the  "Amended  and  Restated Note") and the current principal and
------------
interest  balance  under  the  original  Revolving Credit Note described in this
Section shall be hereafter deemed to be principal and interest outstanding under
the  Amended  and  Restated  Note:

     (a)     INTEREST  RATE.  The  Note  interest  rate  is  amended  as  of the
             --------------
     Effective  Date above to Wall Street Journal Prime Rate, as same may change
     from  time  to  time,  plus  three  percent  (3%)  per  annum.

     (b)     MATURITY.  The  Note  maturity is hereby extended to April 1, 2008.
             --------
     For  purposes

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<PAGE>
     hereof, the term "Maturity" shall likewise refer to the date, if ever, upon
     which Lender, after any applicable cure period, accelerates the Amended and
     Restated Note as a result of a Borrower Event of Default as defined in this
     Amended  RCA  and  in  the  Amended  and  Restated  Note.

     (c)     ADVANCE  CUTOFF  DATE.  Subject  to  the  provisions of Section 1.5
             ---------------------
     below, Borrower shall not request an Advance under the Amended and Restated
     Note  after  October  1,  2007.

     (d)     AMORTIZATION/PAYMENT OF INTEREST AND PRINCIPAL.  From and after the
             ----------------------------------------------
     Effective Date, each respective Advance shall be treated as a separate loan
     for repayment purposes and each such Advance together with accrued interest
     thereon  at  the rate stated in the Amended and Restated Note shall be paid
     by  Borrower  to  Lender  as  follows:

     (1)      As to each specific principal Advance drawn by Borrower hereunder,
     Borrower  shall pay interest-only installments monthly to Lender commencing
     on  the  first day of the calendar month following the date of the specific
     Advance  and  continuing  on the same calendar day of each succeeding month
     thereafter for a total of six (6) monthly interest payments if the specific
     Advance  by  Lender  is  made  between the first (1st) and fifteenth (15th)
     calendar  day  of  a  month,  and for a total of seven (7) monthly interest
     payments  if  the  specific  Advance  is  made  after  the fifteenth (15th)
     calendar  day  of  a month and prior to the first (1st) calendar day of the
     following  month.

     (2)     As to each specific principal Advance drawn by Borrower, commencing
     on  the  first  day  of  the  calendar  month  following the last scheduled
     interest-only  payment  (whether the interest only period is six (6) months
     or  seven  (7)  months  as set forth above and unless Maturity occurs on or
     prior  to  such  date)  and  continuing  on  the  same calendar day of each
     succeeding  month  thereafter  until  Maturity (as defined above), Borrower
     shall  pay  monthly  installments  of  principal  based  upon  a  30-month
     amortization  of  that  specific  Advance  (i.e.  1/30th  of  the  specific
     principal Advance shall be paid monthly), together with the monthly accrued
     interest  on  that specific Advance as of the installment due date for that
     specific  Advance for twenty-four (24) months or until Maturity (as defined
     above),  whichever  shall be the earlier to occur, at which time the entire
     balance  of  the  specific  Advance  shall  become  due  and  payable.

     (3)     At  Maturity  (as  defined  above),  all  outstanding  and  unpaid
     principal  and  accrued  interest  shall  be  paid  by  Borrower to Lender.

     A scheduled payment date which falls on a Saturday, Sunday or holiday shall
     be  due  on  the next business day. [EXAMPLE: A principal Advance eight (8)
     months  prior  to  Maturity would be repayable as interest only for six (6)
     months, then one month of principal based upon a 30-month amortization plus
     interest,  and  then  on  the  8-month  anniversary the entire Advance plus
     accrued  interest  (plus all other outstanding Advances) would be repayable
     due  to  Maturity  of  the  Amended  and  Restated  Note].

                                        3
<PAGE>
     (a)     BALLOON AT MATURITY.  On April 1, 2008, the Amended and Restated
             -------------------
     Note  shall  mature and Borrower shall pay to Lender the entire outstanding
     and  unpaid  principal balance of the Note and all accrued, unpaid interest
     thereon.

     (b)     PAYMENTS  AND  PREPAYMENTS.  Borrower  may  prepay  the  Loan  in
             --------------------------
     increments of not less than $100,000.00 or more each. Any prepayments shall
     be  applied  first  to  those  fees  and  expenses  incurred  by  Lender in
     enforcement  of  the  Amended  and Restated Note, the Deed(s) of Trust, the
     Pledge  Agreement(s),  the  ORRI  assignment(s)  or  any  other  document
     evidencing  or securing the obligations of Borrower and/or its subsidiaries
     under  this  Amended  RCA or under such documents, then to accrued interest
     and  then  to  the principal balance outstanding. All principal prepayments
     shall be applied to the last ensuing installment due under the Note without
     reamortization  of  the  Note.

     (c)     PUT AND CALL PROVISIONS.  The Amended and Restated Note shall have
             -----------------------
     NO  put  or  call  rights  vested  in  either  Lender  or  Borrower.

     Section  1.4     COLLATERAL  FOR  AMENDED  AND  RESTATED  CREDIT LINE.  The
                      ----------------------------------------------------
collateral  for  the  Amended and Restated Credit Line evidenced by this Amended
RCA  shall  be  (a)  subject  to  Sections  6.1 and 6.2 herein,  first and prior
lien(s)  on  the  oil  and gas leases, wells, downhole and surface equipment and
storage  tanks  and  stored  equipment on such leases as to which Lender's funds
have  been  utilized  for  acquisition and/or drilling costs referenced above in
Sections  1.2(a) and (b), including all existing lease interests in the State of
Oklahoma  and  existing  lease  interests in North Dakota (regardless of whether
Lender  funds  are  used for acquisition and/or drilling in North Dakota), which
lien(s)  are  and  shall  be  evidenced  by the form(s) of Master Deed of Trust,
Assignment  of  Production, Security Agreement, and Financing Statement attached
hereto  and  made a part hereof as EXHIBIT "B" or, as to Texas, North Dakota and
                                   -----------
Oklahoma  where  existing  Master  Deed(s)  of  Trust and applicable supplements
thereto  are  of  record, evidenced by the form of Modification and Extension of
Master  Deed  of  Trust,  Assignment  of  Production,  Security  Agreement,  and
Financing  Statement attached hereto and made a part hereof as EXHIBIT "B-1" and
                                                               -------------
(b)  first and prior lien(s) on Borrower's one hundred percent (100%) membership
interest  (subject  to  the  after-payout  back-in  interests  of the subsidiary
directors  of  project  development  (formerly presidents), where applicable) in
Anadarko  Petrosearch  and  any  other subsidiary holding legal title to a Lease
acquired  with  Lender's  funds, which lien(s) shall be evidenced by the form of
Pledge  Agreement  attached  hereto  and  made a part hereof as EXHIBIT "C" (the
                                                                -----------
"Pledge  Agreement").  To the extent that the jurisdiction where future acquired
properties  are  situated  requires a document which is different than the forms
attached  hereto  as  EXHIBITS "B" or "B-1" to create a first and prior lien and
                      ------------    -----
security  interest  in  favor of Lender, then Borrower shall execute and deliver
the  form  of  document prescribed by Lender as necessary to conform to the lien
laws  of  the  applicable  jurisdiction  where the newly acquired properties are
situated.  The  Borrower  anticipates that a new or existing subsidiary shall be
created  or  dedicated to hold legal title to acquired Leases funded in whole or
in  part  with  Lender funds.   Borrower further covenants and agrees to execute
and  deliver  and/or  cause  the  applicable  subsidiary  to execute and deliver
documentation  sufficient to create and perfect first and prior lien(s) over and
upon  any

                                        4
<PAGE>
additional  oil  and  gas  lease(s)  now  existing  or hereafter acquired and/or
drilled  using  Lender  funds.  In  the  event  that  the  title  review  and/or
examination  for  newly  acquired  oil  and  gas  lease(s)  or interests therein
reflects  any  mortgage,  deeds of trust, tax lien or other apparent encumbrance
("encumbrance")  which,  if valid and existing, could impair the first and prior
status of Lender's lien(s) and security interest(s) therein, then Borrower shall
cause  such encumbrance, whether valid or otherwise, to be released of record or
shall  lawfully  bond  around  in  accordance with applicable state or local law
requirements the apparent encumbrance within sixty (60) days of the request date
for  any  Lender advance which will be used to either acquire the encumbered oil
and  gas lease(s) or reimburse Borrower or its subsidiaries for the costs of its
acquisition.  In  the event Borrower fails to cure such title encumbrance within
the  time period provided above, Lender may, but shall not be obligated to, cure
such  title  encumbrance  and  to  charge  the cost and expense incurred in such
curative  action  to  Borrower as an increase in the principal balance under the
Note in addition to all other rights of Lender herein and under any of the other
Loan  Documents.  Such  curative  expenses  so  advanced  shall  thereafter bear
interest  at  the  rate of eighteen (18%) per annum from the date incurred until
paid.

     Section  1.5.     DRAW  PERIOD  AND  AVAILABILITY  OF  LENDER  FUNDS.
                       --------------------------------------------------

          (a)     DRAW  REQUEST  PROCEDURE.  The  principal  of  the Amended and
                  ------------------------
     Restated  Credit  Line  may  be  drawn  by  Borrower in accordance with the
     Schedule of Advances over a twenty-four (24) month period which shall begin
     on  the  Effective Date and end on October 1, 2007 (the "Draw Period") in a
     lump  sum  or  partial  sums  pursuant  to  the  Schedule  of  Advances, in
     Borrower's  discretion,  subject  to  the  Minimum  Collateral  Coverage
     Requirements  described  in  Section 1.6 below. Principal repaid during any
     Draw  Period  may  be  redrawn  subject  to the Minimum Collateral Coverage
     limitations.  Each  draw  by  Borrower  other than the initial draw request
     shall  be  preceded by a 20-day written request (accompanied by a statement
     of the proposed use of proceeds) to Lender and shall be funded by Lender on
     the  twenty-first  (21st)  day following the request. In the event that the
     twenty-first (21st) day falls on a Saturday, Sunday or public holiday, then
     the funding date shall be the next business day of Lender. Unless otherwise
     agreed  in  writing by Lender, draw requests shall be funded utilizing this
     notice  procedure  and  no  more  frequently  than monthly in amounts which
     conform  to the Schedule of Advances, unless otherwise reasonably requested
     by  Borrower  (e.g.  a  request  for  expedited funding due to an impending
                    ---
     deadline  or strong competition for a Lease) and unless otherwise agreed by
     Lender  and  Borrower.

          (b)     FUNDS  AVAILABILITY  DISCLOSURE.  Borrower  acknowledges,
                  -------------------------------
     understands  and  agrees  that  Lender is a private, non-public, entity. As
     such,  Lender  obtains  its  funds  from the private capital markets and/or
     individuals  who  desire  to  participate  in  Lenders  investment  banking
     activities, thus Lender does not have a guaranteed source of money in which
     to  fund  this  transaction  with  Borrower. Borrower acknowledges that the
     volatility  of  the  capital  markets,  the  nature  of Borrower's business
     activities  and/or  other  events  which may come into existence may impact
     Lender's  ability  to raise and procure sufficient capital in order to fund
     all  or  substantially all of the Loan described in this Amended RCA. While
     Lender  will  use  its  best  efforts  to  raise  all  necessary capital to

                                        5
<PAGE>
     complete  the  funding  obligations described in this Amended RCA, the Note
     and  as  Amended  and  Restated  Credit  Line,  Lender  cannot and will not
     guaranty  to  Borrow  that  all  proposed  funding required herein, will be
     available  as,  if and when Borrower elects to make draw requests under the
     terms of this Amended RCA and/or the Note. Borrower acknowledges and agrees
     that  the  inability  of  Lender to obtain funds to complete the funding of
     this  Amended  and  Restated  Credit  Line  will not constitute a breach or
     violation  of  this Amended RCA and/or the Amended and Restated Note and/or
     any  other Loan document as defined herein on the part of Lender; provided,
     however,  that  in the event of Lender's failure to fully fund the entirety
     of  the Amended and Restated Credit Line in accordance with the Schedule of
     Advances  for  reasons  other  than  a  Borrower  default  or  a Collateral
     deficiency  relative  to  the  Minimum  Collateral  Coverage  Requirements
     described  in  Section 1.6 below, the provisions of Section 1.5 below shall
     be  applicable.

          (c)     EFFECT  OF FAILURE TO FUND EIGHT PROSPECT PACKAGE.  Lender and
                  -------------------------------------------------
     Borrower  stipulate  and  agree  that the credit facility as amended by the
     Amended and Restated Note is intended to cover the initial capital needs of
     Borrower  for  the Eight Prospect Package as depicted in the Eight Prospect
     Capital  Budget.  It  is  further  anticipated  that  Borrower  will pursue
     additional  prospect  acquisition  opportunities  in  the  future for which
     Lender funding participation may be desirable. Other than a refusal to fund
     due  to  Borrower's inability to conform to the Minimum Collateral Coverage
     Requirements  described  in Section 1.6, in the event that Lender is unable
     or  refuses to fund the Amended and Restated Credit Line in accordance with
     the  Schedule  of  Advances,  then  (i)  Borrower shall not be obligated to
     afford  Lender  the  participation  rights in future prospects described in
     Section 2.2 herein (except to the extent such future prospects have already
     been  funded  by  Lender),  and  (ii) Lender's overriding royalty interests
     described  in  Section 2.1(b) herein shall apply only to Lease acquisitions
     in  the  Eight  Prospect  Package  funded  by  Lender.  As  an  additional
     consequence of Lender's failure or refusal to fund the Amended and Restated
     Credit  Line (except in the case of Borrower default or failure to meet the
     Minimum  Collateral  Coverage Requirements), Borrower shall have the option
     to  terminate  this  Amended RCA without affecting the payment schedule for
     the Amended and Restated Note Balance and without affecting Lender's ORRI's
     earned  through  the  date  of  termination.

     Section 1.6.     COLLATERAL COVERAGE REQUIREMENTS.  Unless otherwise agreed
                      --------------------------------
in  writing  by  Lender,  unused  available funds under the Amended and Restated
Credit  Line,  shall  only  be  available  for  draw by Borrower if at all times
Borrower's  Proved  Developed  Reserves  (as  defined  herein)  equal  or exceed
twenty-five percent (25%) of the outstanding principal and interest indebtedness
under  the  Amended  and Restated Note, and if the principal balance of the Note
outstanding  after  the  requested  draw  will  be  less than the following sum,
to-wit:  a)  the  actual  costs  of  the  oil  and gas lease(s) purchased and/or
reimbursed through the date of the requested draw with funds advanced under this
Amended  RCA,  and b) the sum of 75% of Borrower's Proved Developed Reserves (as
defined  herein)  and  50% of Borrower's Proved Undeveloped Reserves (as defined
herein)  from  all  sources  pledged  as  collateral  by the Borrower, including

                                        6
<PAGE>
subsidiaries  of  Borrower,  as  such Proved Reserves are reflected in a reserve
report  prepared  by  an  independent  petroleum  engineer  engaged by Borrower,
acceptable  to  Lender  and  otherwise  qualified  to  calculate Proved Reserves
acceptable under Securities and Exchange Commission ("SEC") standards, and which
reserve  report  is  a "Current Reserve Report" as required by Lender under this
Section 1.6. The foregoing requirements shall be collectively referred to as the
"Minimum  Collateral  Coverage  Requirements".  Borrower  shall  be obligated to
update  reserve reports on the earlier to occur of the passage of six (6) months
from  the  date  of the previous report or upon a 15% decline in the hydrocarbon
pricing  model  utilized  in  preparation  of the current report under which the
parties  are operating.  All reserve reports must be updated in a timely fashion
to  conform to these two (2) conditions in order to be deemed a "Current Reserve
Report".  Lender  reserves  the right to engage its own engineer for preparation
of a reserve report and if a separate engineer is so engaged by Lender, Borrower
shall  in  all  respects  cooperate  with  Lender's  engineer  and  provide  all
information  requested  by said engineer to assist in preparation and generation
of  a report.  Said engineer engaged by Lender must be qualified in all respects
to  deliver  a reserve report which meets SEC standards.   If for any reason the
Minimum Collateral Coverage Requirements fall below the minimum threshold amount
described in this Section 1.6, then, within fifteen (15) days of Lender's notice
to  Borrower  of  the  deficiency,  Borrower  and  its  subsidiaries shall cause
additional  collateral  which  strictly  conforms  to  the  collateral  coverage
requirements  of  this  Section  1.6  to  be  secured, pledged and encumbered by
Lender's  first  and  prior  lien(s) and security interest(s), all at Borrower's
expense,  or  the  Borrower  may  prepay a portion of the outstanding loan in an
amount sufficient to bring the balance into compliance with the requirements set
forth above.  For purposes of this Section 1.6, the terms "Proved Developed" and
"Proved  Undeveloped"  Reserves  shall have the meanings set forth in Regulation
S-X  ("Accounting  Rules  Form  and Content of Financial Statements"), Rule 4-10
("Financial  Accounting  and  Reporting  for  Oil  and  Gas Producing Activities
Pursuant  to  the Federal Securities Laws and the Energy Policy and Conservation
Act  of  1975")  as  follows:

          PROVED  DEVELOPED  OIL AND GAS RESERVES. Proved developed oil and
          gas  reserves  are  reserves that can be expected to be recovered
          through  existing  wells  with  existing  equipment and operating
          methods.  Additional  oil and gas expected to be obtained through
          the  application  of  fluid  injection or other improved recovery
          techniques for supplementing the natural forces and mechanisms of
          primary  recovery should be included as proved developed reserves
          only  after  testing by a pilot project or after the operation of
          an  installed  program  has confirmed through production response
          that  increased  recovery  will  be  achieved.

          PROVED  UNDEVELOPED  RESERVES.  Proved  undeveloped  oil  and gas
          reserves  are reserves that are expected to be recovered from new
          wells  on  undrilled  acreage,  or  from  existing  wells where a
          relatively  major  expenditure  is  required  for  recompletion.
          Reserves  on undrilled acreage shall be limited to those drilling
          units  offsetting productive units that are reasonably certain of
          production  when  drilled.  Proved  reserves  for other undrilled
          units  can  be  claimed  only  where  it can be demonstrated with
          certainty  that  there  is  continuity  of  production  from  the
          existing  productive  formation.  Under  no  circumstances should
          estimates  for

                                        7
<PAGE>
          proved  undeveloped  reserves  be attributable to any acreage for
          which  an  application  of  fluid  injection  or  other  improved
          recovery  technique  is contemplated, unless such techniques have
          been proved effective by actual tests in the area and in the same
          reservoir.

     Section  1.7.     LENDER  STANDBY FEES FOR UNDRAWN PRINCIPAL.  Lender shall
                       ------------------------------------------
charge  quarter-annually  to  Borrower  and  Borrower  shall  pay  to Lender, as
invoiced,  a  standby  fee  equal to one quarter of one percent (0.25%) [i.e. 1%
annually]  of  the funds available to be drawn under the Schedule of Advances in
effect  at  the  time  which  are  not  drawn by Borrower.   Funds which are not
available to be drawn either because of (i) limitations imposed by Lender due to
deficiency  in  the  Minimum  Collateral Coverage Requirements, or (ii) Lender's
inability  to fund pursuant to timely request for funding by Borrower, shall not
be  included  in  the  calculation of the standby fee.  The standby fee shall be
calculated using the average daily balance of the unused available funds for the
quarter.   Attached  hereto as Schedule 2 are the anticipated scheduled payments
and  commitments  under  the  Amended  and  Restated  Credit  Line.

     Section 1.8     EVENTS UPON REPAYMENT OF LOAN.  Upon the full repayment and
                     -----------------------------
discharge  by  Borrower of all of the obligations under this Amended RCA and the
corresponding  loan  documents,  Lender shall, promptly after such repayment and
termination have occurred, release all of its liens and security interests under
the  Deed(s)  of  Trust  and  the  Pledge  Agreement(s)  and  any  amendments or
supplements  thereto,  if  applicable, or other document(s) executed by Borrower
and/or  its  subsidiaries  to  evidence  or  secure the indebtedness of Borrower
and/or  its  subsidiaries  under  this  Amended  and  Restated  Credit  Line.

     Section  1.9.     PARTIAL  RELEASES  OF  DEED(S)  OF  TRUST  AND/OR  PLEDGE
                       ---------------------------------------------------------
AGREEMENT(S).   With regard to the lien(s) and security agreement(s) created and
evidenced  by  the  Deed(s)  of Trust, any amendments or supplements thereto, if
applicable, and any other document executed by Borrower and/or its subsidiaries,
Borrower  and  its subsidiaries who are parties to the Deed(s) of Trust shall be
entitled to obtain from Lender, upon written request to Lender from time to time
and  for any business reason, so long as Borrower and/or its subsidiaries is/are
not  then  in default under this Amended RCA or any other document evidencing or
securing  the obligations of Borrower and/or its subsidiaries under this Amended
RCA  or under such documents, a partial release of the specific Deed of Trust so
long as the written request is signed by the chief financial officer of Borrower
and  contains  a  certification by said chief financial officer that the Minimum
Collateral  Coverage  Requirements set forth in Section 1.6 above shall continue
to  be satisfied after such partial release is executed and delivered by Lender.
The  request  must  be  supported  by  a  Current Reserve Report as that term is
defined  in  Section 1.6 above which reflects a level of Proved Developed and/or
Proved  Undeveloped  Reserves  which,  after the requested partial release, will
continue  to  provide  the Minimum Collateral Coverage described in Section 1.6.
In  like  fashion, Borrower shall be entitled to obtain from Lender upon written
request to Lender from time to time, so long as Borrower and/or its subsidiaries
is/are  not  then  in  default  under  this  Amended  RCA  or any other document
evidencing or securing the obligations of Borrower and/or its subsidiaries under
this  Amended  RCA  or  under  such  documents,  a  release  of  the  Pledge

                                        8
<PAGE>
Agreement(s)  as to any specified subsidiary which no longer holds a Lease which
is subject to Lender's Deed of Trust lien(s), either due to sale of the Lease(s)
or  due  to  expiration  or  termination  of  the  Lease(s)  by  their  terms.

                                   ARTICLE II

LENDER'S OVERRIDING ROYALTY INTEREST AND RIGHT TO PARTICIPATE IN FUTURE PROSPECT
--------------------------------------------------------------------------------
                                  ACQUISITIONS
                                  ------------

     Section  2.1     LENDER'S  OVERRIDING  ROYALTY  INTERESTS.
                      ----------------------------------------

          (a)     EXISTING  OVERRIDE  IN  ANADARKO  AND  FORT  BEND  LEASES.  As
                  ---------------------------------------------------------
     additional consideration from Borrower to Lender to make the original loan,
     Borrower  caused  Anadarko  Petrosearch  and  TK  Petrosearch to deliver to
     Lender a one percent (1% of 8/8ths) overriding royalty interest ("ORRI") in
     all  existing Oklahoma Leases (the "Existing Oklahoma ORRI") and in certain
     Fort  Bend  County,  Texas  Leases  (the "Existing Fort Bend County ORRI"),
     which  Existing  Oklahoma  ORRI  and  Fort Bend County ORRI shall remain in
     effect  as  to the Leases acquired prior to the Effective Date unchanged by
     this  Amended  RCA.  Since  Borrower  has  divested  the  Fort Bend Leases,
     Borrower  shall have no liability or responsibility with regard to the Fort
     Bend  County  ORRIs held by Lender except for warranties of title contained
     in  the  assignment  conveying  such  Fort  Bend  County  ORRIs.

          (b)     EIGHT  PROSPECT  PACKAGE LENDER ORRI.  As to each Lease in the
                  ------------------------------------
     Eight  Prospect  Package  funded  with  Lender funds in accordance with the
     Eight  Prospect  Capital  Budget  submitted by Borrower to Lender (assuming
     100%  funding  of  Borrower's  acquired  interest  by  direct  payment  or
     reimbursement),  Borrower  shall  cause  the  acquiring  subsidiary  or
     subsidiaries  (if more than one subsidiary holds legal title) to deliver to
     Lender  an  ORRI  equal  to  two  percent  (2%) of the net revenue interest
     actually  acquired  by  Borrower's  subsidiary. [EXAMPLE: Should Borrower's
     subsidiary acquire a 50% net revenue interest in a prospect included within
     the  Eight  Prospect  Package  which  is  funded  by Lender in its entirety
     pursuant  to the Eight Prospect Capital Budget, then Lender's ORRI shall be
     adjusted  by  multiplying: 2% (ORRI) X 50% (Borrower's interest), resulting
     in  an  adjusted  ORRI  of  1.0%].

          (c)     FUTURE  LENDER  ORRI  IN  OTHER  PROSPECTS.  Subject  to  the
                  ------------------------------------------
     provisions  of  Section 2.2 below, as to future Leases acquired by Borrower
     with  Lender  funds  outside  of the Eight Prospect Package, Borrower shall
     cause the acquiring subsidiary or subsidiaries (if more than one subsidiary
     holds legal title) to deliver to Lender a two percent (2%) ORRI, which ORRI
     shall  be  proportionately  adjusted,  where  applicable,  to  BOTH the net
     revenue  interest owned by Borrower's subsidiaries and to the percentage of
     Lender's  funds  utilized relative to Borrower's funds actually utilized to
     acquire  that  net revenue interest. [EXAMPLE: Should Borrower's subsidiary
     acquire  a  50% net revenue interest in a prospect for $1,000,000, one half
     of which funds are provided by Lender, then Lender's ORRI shall be adjusted
     by  multiplying:  2%  (ORRI)  X  50%  (Borrower's

                                        9
<PAGE>
     interest)  X  50%  (Percentage  of  Lender's  funds  relative to Borrower's
     funds),  resulting  in  an  adjusted  ORRI  of  0.50%].

          (d)     The  ORRIs  are  in  all  respects  absolutely and irrevocably
     earned  when  Lender  funds  are  utilized  by  Borrower  for direct and/or
     indirect  acquisition  expenses,  drilling  expenses  or  reimbursement  to
     Borrower  for  such activities related to an oil and gas lease as described
     in  Sections  1.2(a)  and  (b)  hereof,  and  the earned ORRIs shall not be
     subject  to  reversion  or  reassignment  upon  repayment  of  the  loan or
     termination  (by  passage  of  time,  early  termination or acceleration by
     Lender  upon Borrower's default) of this credit facility. Additionally, all
     earned  ORRIs  which  have been earned but not assigned upon termination of
     the credit facility shall be immediately assigned, in recordable form, upon
     the  termination  event.

          (e)     For  purposes  of  determining  relative percentage funding by
     Lender  and Borrower in any acquisition covered by this Amended RCA, Lender
     and  Borrower  stipulate  and agree that acquisitions by Borrower from bona
     fide third party entities based upon arms length negotiations which involve
     issuance of Borrower's capital stock or assumption of existing indebtedness
     by Borrower either in lieu of or in addition to payment of cash funds, that
     the  issued  stock  or  assumed  indebtedness  shall  be  treated as a cash
     equivalent.  Issued  stock shall be on the basis of the stated value of the
     issued stock in the acquisition agreement (e.g. which may not be the public
     market  trading  value)  or,  if  no  value  is  stated  in  an acquisition
     agreement, then the closing quoted market value of the stock on the date of
     issuance.  If  there  is no stated value for the stock and no quoted public
     market value for the class of stock, then the value shall be based upon par
     value. Assumed indebtedness shall be on the basis of the balance due of the
     indebtedness  so  assumed  on  the  date  of  assumption.

          (f)     The  form  of  Assignment of Overriding Royalty Interest which
     will  be used for each assignment is attached hereto and made a part hereof
     as  EXHIBIT  "D".  Borrower  shall  record  each  Lease  acquired  in  the
         ------------
     appropriate public records office wherein the leasehold interest is located
     within  five (5) business days from receipt of the executed Lease and shall
     deliver to Lender Lender's ORRI within five (5) business days of receipt of
     the  recorded Lease from the public recording official together with a copy
     of  the  recorded Lease and which ORRI shall be effective as of the date of
     the  recorded  Lease.

-          Section 2.2.     LENDER RIGHTS TO PARTICIPATE IN FUTURE PROSPECTS.
                            ------------------------------------------------
     Conditioned upon Lender having funded on a timely basis as requested the
     capital outlay proposed by Borrower in its Eight Prospect Capital Budget,
     as Advances are actually requested by Borrower, subject to compliance with
     Section 1.6 above and providing that the Borrower was not otherwise in
     default, then as to any proposed future prospect during the 24-month period
     from the Effective Date through October 1, 2007, which Borrower expects or
     intends to fund with third party full recourse (to Borrower) debt
     financing, in whole or in part, Borrower shall afford Lender the right and
     opportunity to fund a minimum of thirty-three and one third percent
     (33.33%) of Borrower's third party full recourse debt-financed

                                       10
<PAGE>
     interests acquired in the new prospect, other than the Eight Prospect
     Package. Borrower shall accompany each request for funding with information
     regarding the project Borrower intends to finance with the borrowed funds.
     Borrower, in its sole discretion, will determine the percentage of funding
     requested from Lender which will range from a minimum of 33.33% up to 100%
     funding of Borrower's interests. Each Financing Package (as defined below)
     will exclude the interest of third party drilling co-venturers and cover
     only the particular interest proposed to be acquired by Borrower's
     subsidiary. Other than the Eight Prospect Package, Lender shall have the
     right to voluntarily decline to participate in the particular prospect and
     shall notify Borrower of its election within fifteen (15) days of receipt
     of Borrower's Financing Package, but Lender shall NOT have the right to
     adjust the percentage of participation proposed by Borrower in its funding
     request. A failure to respond in writing by certified mail or overnight
     courier within the fifteen- (15) day period shall be deemed to be an
     election NOT to participate. Lender shall be entitled to receive its
     proportionate ORRI described in Section 2.1 above only as to prospects
     which it funds and only to the proportionate extent funded as described in
     Section 2.1. For purposes hereof, the parties stipulate that a Borrower
     Financing Package need not conform to any particular format or minimum set
     of materials, as some prospect proposals may have more informational
     materials available than others. Accordingly, a "Financing Package" shall
     be defined as those materials which Borrower, in its sole discretion, and
     in good faith, believes are sufficient to identify the target acquisition
     area for which funds are being requested and are sufficiently complete for
     Borrower to obligate itself to incur debt as to the Leases therein
     described, and which shall include the following:

       -  Type of deal - Acquisition with development drilling, development
     drilling, exploitation drilling, enhanced recovery, etc.

       -   Location - State, County, S-T-R or survey and abstract (TX) -
     regional  and  local  maps

       -   Ownership - Gross and net acres, depth limitation, WI, NRI (BPO and
     APO,  before  Fortuna)

       -   Potential number of wells to be drilled, depth, name of zone, gas or
     oil  target

       -   Dry hole and completion cost per well

       -   Total capital requirement expected from Fortuna

       -   Proved, probable and possible reserve estimates

       -   Expected project cash flow and benchmarks - ROI, ROR, time to payout,
     UCF,  PV10

The  rights  of  Lender  under this Section 2.2 shall not be available to Lender
upon  and  after a completed "change in control" of Borrower due to acquisition,
merger,  business  combination  or otherwise, notwithstanding the fact that such
change  in  control  results  in  Borrower's  default

                                       11
<PAGE>
under this Amended RCA, the Amended and Restated Note and the security documents
executed  in  connection  with  this Amended RCA, save and except as to projects
already offered to Lender, accepted by Lender and as to which the loan documents
have  been  amended to include the project at the time of the change in control.
In the event that the completed change of control occurs after Lender's decision
to  participate  but  before execution of amendments to the loan documents, then
Lender  shall  not be entitled to participate but Lender shall be reimbursed all
of  its  reasonable out of pocket expenses related to evaluation of the prospect
and/or  preparation  of  any loan documents, including attorneys fees.  Lender's
right to participate in any proposed acquisition under this Section 2.2 shall be
limited  to  projects  which  Lender  can  fund  to the full extent requested by
Borrower  under  the funding limitations set forth in Section 1.6 herein, unless
Lender  and  Borrower  mutually agree to modify the funding limitations so as to
permit  a  funding  by  Lender  in  accordance  with  Borrower's  request.

                                   ARTICLE III

                         LENDER'S CONDITIONS TO ADVANCES
                         -------------------------------

     The obligation of Lender to fund the Advances shall be subject to the prior
or  concurrent  satisfaction  (or in Lender's discretion, the waiver) of each of
the  conditions  precedent  set  forth  in  this  Section.

     Section  3.1.     RESOLUTION.  Lender  shall  have received from Borrower a
                       ----------
certificate  of  its  Secretary or Assistant Secretary, member, manager, general
partner  or  other  appropriate officer, as applicable, as to (a) resolutions of
its  Board  of Directors or Managers, as the case may be, then in full force and
effect  authorizing the execution, delivery and performance of this Amended RCA,
the  Amended and Restated Note, the Modification and Extension of Master Deed of
Trust,  Mortgage,  Assignment  of  Production,  Security Agreement and Financing
Statement  (the "Modification of Deed of Trust") and each other loan document to
be  executed  by  it; (b) the incumbency and signatures of those of its officers
and/or managers authorized to act with respect to this Amended RCA, and (c) that
Borrower  and  its  subsidiaries are in compliance with all of the covenants and
Amended  RCAs  contained  in  this  Amended  RCA.

     Section  3.2.     DELIVERY OF NOTE.  Lender shall have received the Amended
                       ----------------
and  Restated  Note  duly  executed  and  delivered  by  Borrower.

     Section  3.3     DELIVERY OF MODIFICATION  AND  EXTENSION OF DEED OF TRUST.
                      ---------------------------------------------------------
Lender  shall  have  received the Modification of Deed of Trust duly executed in
recordable  form  on  behalf  of the Borrower, Anadarko Petrosearch and Guidance
Petrosearch.

     Section  3.4.     COMPLIANCE  WITH  LOAN  DOCUMENTS.  Borrower  shall  have
                       ---------------------------------
performed  all  Amended  RCAs and covenants required by this Amended RCA and all
representations  and  warranties  herein and in the other loan documents made by
Borrower  or any of its subsidiaries shall be true and correct as of the date of
the  Advance.

                                       12
<PAGE>
     Section  3.5     NO  DEFAULT.  No  default,  or  event which could become a
                      -----------
default if uncured, shall have occurred and be continuing on the date of funding
of  the  requested  Advance.

                                   ARTICLE IV

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

     In  order  to  induce Lender to enter into this Amended RCA and to make the
Advances  hereunder,  Borrower  represents  and warrants unto Lender as follows:

     Section  4.1     ORGANIZATION,  ETC.  Borrower  is  a  corporation  validly
                      ------------------
organized  and  existing  and  in  good  standing under the laws of the State of
Texas,  is duly qualified to do business and is in good standing in the State of
Texas  and  all  jurisdictions  where  the  nature of its business requires such
qualification,  and  has  full  power  and  authority  and  holds  all requisite
governmental licenses, permits and other approvals to enter into and perform its
obligations  under  this  Amended  RCA,  the  Amended  and  Restated  Note,  the
Modification of Deed of Trust, the Pledge Agreement and each other loan document
and  to  own  and  hold  under  lease  its  property and to conduct its business
substantially  as  currently  conducted  by  it.

     Section  4.2     DUE  AUTHORIZATION,  NON-CONTRAVENTION, ETC.  Borrower has
                      -------------------------------------------
the  full legal power, right and capacity to enter into and perform this Amended
RCA  and  the  other  loan documents to which it is party.  Each obligor has the
full  legal  power,  right  and  capacity  to  enter  into  and perform the Loan
Documents  to  which  it is a party.  The execution, delivery and performance by
Borrower of this Amended RCA, the Amended and Restated Note, the Modification of
Deed  of Trust, the Pledge Agreement and each other loan document executed or to
be  executed  by  it,  and the execution, delivery and performance by each other
obligor  of  each  loan  document  executed  or  to be executed by it are within
Borrower's  and  each  such  obligor's company, corporate or partnership powers,
respectively,  have  been duly authorized by all necessary corporate action, and
do not (a) contravene Borrower's or any such obligor's organizational documents,
(b)  contravene  any  contractual restriction, law or governmental regulation or
court  decree or order binding on or affecting Borrower or any such obligor, (c)
result  in,  or  require  the  creation or imposition of, any lien on any of any
obligor's  properties,  or  (d)  require  the  consent  or approval of any other
person.

     Section  4.3     GOVERNMENT APPROVAL, REGULATION, ETC.  No authorization or
                      ------------------------------------
approval  or  other action by, and no notice to or filing with, any governmental
authority  or regulatory body or other person is required for the due execution,
delivery  or  performance  by Borrower or any other obligor of this Amended RCA,
the  Amended  and  Restated  Note, the Modification of Deed of Trust, the Pledge
Agreement  or  any other loan document to which it is a party.  Neither Borrower
nor  any  of  its  subsidiaries  or any other obligor is an "investment company"
within  the  meaning  of  the  Investment  Company Act of 1940, as amended, or a
"holding  company,"  or  a  "subsidiary  company"  of a "holding company," or an
"affiliate"  of  a  "holding company" or of a "subsidiary company" of a "holding
company,"  within the meaning of the Public Utility Holding Company Act of 1935,
as  amended.

                                       13
<PAGE>
     Section  4.4     VALIDITY,  ETC.  This  Amended  RCA  constitutes,  and the
                      --------------
Amended  and  Restated  Note,  the Modification of Deed of Trust, and each other
loan  document  executed by Borrower and/or Anadarko Petrosearch and/or Guidance
Petrosearch  will,  on  the  due execution and delivery thereof, constitute, the
legal,  valid and binding obligations of the party executing same enforceable in
accordance  with their respective terms.  Each document executed pursuant hereto
by  each  named  obligor will, on the due execution and delivery thereof by such
obligor,  be the legal, valid and binding obligation of such obligor enforceable
in  accordance  with  its  terms.

     Section  4.5.     NO MATERIAL ADVERSE CHANGE.  Since the date of Borrower's
                       --------------------------
most  recent  audited  financial  statements,  there  has  not been any material
adverse  change.

     Section 4.6.     LITIGATION, LABOR CONTROVERSIES, ETC.  There is no pending
                      ------------------------------------
or,  to  the knowledge of Borrower, threatened litigation, action, proceeding or
labor  controversy  affecting  Borrower  or any of its subsidiaries or any other
obligor,  or  any  of their properties, assets or revenues, or the Leases, which
has  caused  or  may cause a material adverse effect or which purports to affect
the  legality,  validity  or enforceability of this Amended RCA, the Amended and
Restated  Note,  the  Modification  of Deed of Trust or any other loan document.

     Section  4.7.     BROKER'S FEES.  Borrower has not incurred any obligation,
                       -------------
contingent  or  otherwise,  for  brokers'  or  finders'  fees  in respect of the
transactions  contemplated  by  this  Amended  RCA.

     Section  4.8.     TAXES.  Borrower,  each of its subsidiaries and any other
                       -----
obligor has filed all tax returns and reports required by law to have been filed
by it and has paid all taxes and governmental charges thereby shown to be owing,
except  any  such  taxes or charges which are being diligently contested in good
faith  by  appropriate  proceedings  in  accordance with the requirements of the
jurisdiction  where  such  contest is pending and for which adequate reserves in
accordance  with  GAAP shall have been set aside on its books.  Borrower has not
been  audited  by any state, federal, or other governmental or other body having
taxing  authority.

     Section  4.9.     PENSION  AND  WELFARE  PLANS; EMPLOYEES.  Borrower has no
                       ---------------------------------------
pension  plans  or  employee  benefit  plans  within  the  meaning  of  ERISA.

     Section 4.10.     COMPLIANCE WITH LAWS.  Borrower and its subsidiaries have
                       --------------------
complied  with  all  applicable  statutes,  rules,  regulations,  orders  and
restrictions  of  any  domestic  or foreign government or any instrumentality or
agency  thereof,  having jurisdiction over the Leases.  Neither Borrower nor any
of its Subsidiaries has received any notice to the effect that the operations of
Borrower  or  such  subsidiary relating to the Leases are not in compliance with
any  of the requirements of applicable environmental laws, or are the subject of
any  federal  or  state investigations evaluating whether any remedial action is
needed  to  respond  to  a  release of any hazardous material (as defined in the
environmental  laws)  involving  the  Leases.

     Section  4.11.     ENVIRONMENTAL WARRANTIES.  Except as reasonably could be
                        ------------------------
expected to cause a material adverse effect (i) all of the Leases and associated
facilities  operated  by  Borrower  or  any  of  its subsidiaries have been, and
continue  to  be,  owned,  leased  or  operated  by  Borrower,

                                       14
<PAGE>
such  subsidiary in compliance with all environmental laws; (ii) there have been
no  past,  and there are no pending or threatened claims, complaints, notices or
inquiries  to, or requests for information received by, or known to, Borrower or
any  of  its  subsidiaries  with  respect  to,  any  alleged  violation  of  any
environmental  law  with  respect  to  the  oil  and  gas  leases  or associated
facilities  operated  by  Borrower, such Subsidiary or such Obligor; (iii) there
are  no  pending  or  threatened claims, complaints, notices or inquiries to, or
requests  for  information  received  by,  or  known  to, Borrower or any of its
subsidiaries  for  potential  liability under any environmental law or under any
common  law theories relating to operations or the condition of any of the lands
comprising  the Leases (including underlying groundwater); and (iv) Borrower and
its  subsidiaries  have  been  issued  and  are  in compliance with all permits,
certificates,  approvals,  licenses  and  other  authorizations  relating  to
environmental  matters  and  necessary  or  desirable  for  its business and the
operation  of  each  of  the  Leases.

     Section  4.12.  SEC REQUIREMENTS.  Borrower represents that it has made and
                     ----------------
will  continue to make all periodic filings required of it by the Securities and
Exchange  Commission  on  a  timely  basis.  Neither  Borrower  nor  any  of its
subsidiaries  has received notice from the Securities and Exchange Commission or
any state securities agency that Borrower or any subsidiary is not in compliance
with applicable Securities and Exchange Commission or state securities rules and
regulations  or  is under investigation regarding the potential violation of any
such  rule  or  regulation.

     Section 4.13.  MONTHLY STATUS REPORT.  Borrower represents that commencing
                    ---------------------
on the last day of the calendar month following the month in which the initial
Advance is made by Lender and continuing on the last day of each month
thereafter, Borrower will prepare and deliver to Lender a written status report
indicating the status of all oil and gas leases acquired with Lender's funds,
expenditures utilizing Lender's funds, and overriding royalty interest
assignments due to Lender through the end of the month preceding the due date,
pursuant to Section 2.1(f) above.

                                    ARTICLE V

                              AFFIRMATIVE COVENANTS
                              ---------------------

     Borrower  agrees  with Lender that during the Term of this credit facility,
Borrower  will,  and will cause its subsidiaries to perform, the obligations set
forth  in  this  Section.

     Section  5.1.     ALLOCATION  AND  BUDGETING OF LOAN PROCEEDS FOR DRILLING.
                       --------------------------------------------------------
Borrower  shall,  in  good faith exercising sound commercial judgment and, where
applicable,  acting  within  reasonably  prudent operator standards, endeavor to
budget  and  allocate  the  requested  advances  under this Amended and Restated
Credit  Line  in  such  a  manner  that  sufficient  funds shall be available to
Borrower  in the near term, from third party venturers, the Amended and Restated
Credit Line, projected cash flow or set asides to drill and test the oil and gas
lease(s)  acquired  with or reimbursed by Amended and Restated Credit Line funds
within  the  primary term of such oil and gas lease(s) and shall have determined
that  appropriate  and  sufficient  drilling  rigs  and/or

                                       15
<PAGE>
equipment  are  available in the geographic area where such drilling activity is
to  occur  within  such  time  period.

     Section  5.2.     FINANCIAL  INFORMATION,  REPORTS, NOTICES, ETC.  Borrower
                       ----------------------------------------------
will furnish to Lender upon request, or will cause to be furnished at Borrower's
cost  to  Lender upon request, copies of (i) fiscal quarter unaudited and annual
audited  financial  statements  prepared by Borrower's accountants in accordance
with  GAAP;  (ii)  Current  Reserve Reports as defined in Section 1.6 above, and
(iii)  all  filings  with  the  Securities  and  Exchange  Commission.

     Section  5.3.     COMPLIANCE  WITH LAWS, ETC.  Borrower shall comply in all
                       --------------------------
material  respects  with  all  applicable  laws,  rules,  regulations,  orders,
licenses,  contracts,  and  permits,  such  compliance  to  include,  without
limitation:  (i)  compliance  with  all environmental laws; (ii) the maintenance
and preservation of its existence and qualification as a corporation and/or as a
foreign  corporation  in  all  jurisdictions  where  the  nature of its business
requires  such  qualification;  (iii)  compliance  with  all  SEC  rules  and
regulations;  and  (iv)  the  payment, before the same become delinquent, of all
taxes, assessments and governmental charges imposed upon it or upon its property
except  to  the  extent  being diligently contested in good faith by appropriate
proceedings  and  for which adequate reserves in accordance with GAAP shall have
been  set  aside  on  its  books.

     Section 5.4.     TAXES.  Borrower will make all required federal income tax
                      -----
filings  prior to any applicable filing deadlines.  Borrower shall pay, promptly
when  due,  and  in  any  event within thirty (30) days of its payment due date,
except  as  contested in good faith and by appropriate proceedings in compliance
with  the laws and procedures of the taxing jurisdiction under which the contest
is filed and for which adequate reserves in accordance with GAAP shall have been
set  aside  on  its books, together with interest and penalties thereon, if any,
all  taxes, including severance taxes and other taxes, duties, imposts, charges,
levies  and  assessments  of  any  kind  or  nature  whatsoever, imposed upon or
assessed  with respect to or charged against the Leases or production therefrom.
In  the event that a jurisdiction or applicable laws require payment at the time
of  a  tax protest, Borrower shall make such required payment at the time of any
tax  protest  asserted  by  Borrower.

     Section  5.5.     INSURANCE.  Borrower  will  maintain (or will cause to be
                       ---------
maintained)  bonding  and liability insurance in coverages and amounts customary
and  usual  in  the  North  American  exploration and production industry and in
compliance  with  the  laws,  rules and regulations of the jurisdiction in which
such operations and/or property is located.  At Lender's request, Borrower shall
cause Lender to be named on any policy or policies of insurance as an additional
insured  or  loss  payee  to  the  extent  of  its  interest,  as  applicable.

     Section  5.6.     BOOKS  AND  RECORDS.  Borrower  and its subsidiaries will
                       -------------------
keep  and  maintain  in Harris County, Texas, books and records which accurately
reflect  all  of  their  business  affairs  and  transactions,  or relate to the
Leases, and permit Lender or any of its representatives, at reasonable times and
intervals,  to  visit all of its offices and the Leases, to discuss such affairs
and  transactions  with  their  respective  officers  and  independent  public
accountants  (and  Lender  is  hereby authorized to have such independent public
accountants  discuss  the  financial  matters  of

                                       16
<PAGE>
Borrower  and its subsidiaries) and to examine (and, at the expense of Borrower,
photocopy  extracts from) any of its books or other corporate records.  Borrower
shall  pay  any fees incurred in connection with Lender's exercise of its rights
pursuant  to  this  Section.

     Section 5.7.     ENVIRONMENTAL COVENANT.  Borrower will (i) use and operate
                      ----------------------
all  of  its facilities and properties (including the Leases) in compliance with
all  environmental  laws,  keep  all necessary permits, approvals, certificates,
licenses  and  other  authorizations relating to environmental matters in effect
and  remain in material compliance therewith, and handle all hazardous materials
in  compliance  with  all applicable environmental laws, (ii) immediately notify
Lender  and  provide  copies  upon  receipt  of  all written claims, complaints,
notices  or inquiries relating to the condition of its facilities and properties
or  compliance  with  environmental  laws,  and  shall  promptly  cure  and have
dismissed  with  prejudice  to  the  satisfaction  of  Lender  any  actions  and
proceedings  relating  to  compliance with environmental laws, and (iii) provide
such  information  and  certifications  which Lender may reasonably request from
time  to  time  to  evidence  compliance  with  this  Section.

     Section 5.8.     FURTHER ASSURANCES.  Borrower will execute and deliver all
                      ------------------
such other and additional instruments, notices, releases and other documents and
will  do  all  such  other  acts  and  things  as may be reasonably necessary or
appropriate  to more fully secure Lender or its successors or assigns all of the
respective  rights  and  interests  herein  and hereby or pursuant to any of the
other  loan  documents  granted  or  intended  so  to  be.

     Section  5.9.     PUNCTUAL  PAYMENT.  Borrower  shall timely and punctually
                       -----------------
pay  all  interest,  principal and all other amounts when due under this Amended
RCA,  the  Amended  and Restated Note, the Modification of Deed of Trust, or any
other  document  executed  by  Borrower  and/or  its subsidiaries to evidence or
secure  the  indebtedness of Borrower and/or its subsidiaries under this Amended
and  Restated  Credit  Line.

     Section  5.10     PUNCTUAL  DELIVERY  OF  ORRI ASSIGNMENTS.  Borrower shall
                       ----------------------------------------
record  and  deliver the Lender ORRI assignments which accrue under this Amended
RCA  in  accordance  with  Section  2.1(f)  above.

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

                               NEGATIVE COVENANTS
                               ------------------

     Borrower  agrees  with  Lender  that  during  the  Term of this Amended and
Restated Credit Line, Borrower will, and will cause its subsidiaries to perform,
the  obligations  set  forth  in  this  Section.

     Section  6.1.  NO  SENIOR  OR  PARI PASSU INDEBTEDNESS.  Borrower, Anadarko
                    ---------------------------------------
Petrosearch, Guidance Petrosearch and other subsidiaries formed either now or in
the  future in which the Lender has Collateral at the time of request for relief
under  this  Section  shall  not,  without  Lender's consent, which shall not be
unreasonably  withheld,  incur  any  indebtedness  which is senior to or in pari
passu  to  this  credit  facility as to the Lease assets on which Lender holds a

                                       17
<PAGE>
deed  of trust lien while any part of the principal advanced by Lender under the
Note  is outstanding and unpaid.  This provision shall not be deemed to preclude
joint  venture partners in Borrower's drilling operations nor Borrower's ability
to  grant  a  lien,  security  interest  or participation interest in a Lease or
fractional  undivided  interest  therein on which Lender does NOT hold a lien or
security  interest  (e.g. due to a partial funding rather than a 100% funding by
Lender).  Borrower  shall  within  fifteen (15) days after execution of any pari
passu  lender documentation provide Lender with the name, address, telephone and
facsimile  numbers  of  each  pari  passu  lender,  a copy of such lender's loan
documents  and,  if  applicable,  notice  of  any  default  under  or  attempted
enforcement  of  said  pari passu lender's documents.  [EXAMPLE:   Should Lender
fund  the acquisition of a 50% working interest in a Lease and Borrower fund the
remaining 50% of the working interest, then Borrower shall be entitled to create
senior  or pari passu indebtedness as to, and to grant liens, security interests
or  participation  interests  as  to,  the  50% interest which was not funded by
Lender  and  which  is  not  subject  to Lender's liens and security interests.]

     Section  6.2.     LIENS  OF DEED OF TRUST AND PLEDGE AGREEMENT.  Except for
                       --------------------------------------------
the  back-in  interests  of  the  subsidiary  President,  if applicable, as to a
particular  subsidiary,  and except as to interests which are released by Lender
pursuant  to  Section  1.9  above,  the  Deed(s)  of  Trust  (as modified by the
Modification  of Deed of Trust) and the Pledge Agreement(s) are, and always will
be  kept, a direct first perfected lien and security interest upon the Leases of
Borrower  and  its  subsidiaries  which are covered by the Deed(s) of Trust, and
100%  of the membership interests of the subsidiaries of Borrower covered by the
Pledge  Agreement(s).

     Section  6.3.     BUSINESS  ACTIVITIES.  Borrower is a corporation and will
                       --------------------
not  engage,  or  permit  any  of  its  subsidiaries  to engage, in any business
activity,  except  the owning, operating, producing, processing and marketing of
hydrocarbons  and  such  activities  as  may  be  incidental or related thereto,
without  the  prior  written  consent  of  Lender,  in  its  discretion.

     Section  6.4.     CONSOLIDATION,  MERGER, ETC.  Borrower will not liquidate
                       ---------------------------
or dissolve, consolidate with, or merge into or with, any other person or entity
without  the  prior  written  consent  of  Lender,  which  consent  shall not be
unreasonably  withheld.  Any  proposed  business  combination under this Section
shall not trigger a Lender option to participate save and except as set forth in
Section  2.2  herein.

     Section  6.5.     NO CHANGE IN  NAME,  LOCATION,  ETC.  Borrower  will  not
                       ------------------------------------
change  its  name  or  identity,  or  change the location of its chief executive
office  or  its  chief  place  of business or the place where Borrower keeps its
books  and  records  concerning  the Leases without the prior written consent of
Lender,  which  consent  shall  not  be  unreasonably  withheld.

                                   ARTICLE VII
                                   -----------

                      EVENTS OF DEFAULT/REMEDIES OF LENDER
                      ------------------------------------

     Each of the following events or occurrences described in this Section shall
constitute  an  "Event  of  Default."

                                       18
<PAGE>
     Section 7.1.     NON-PAYMENT OF OBLIGATIONS.  Borrower shall default in the
                      --------------------------
payment or prepayment when due of any principal of or interest under the Amended
and Restated Note, or Borrower or any other obligor shall default in the payment
when  due  of  any  other  monetary  obligation.

     Section  7.2.     BREACH  OF  WARRANTY.  Any  representation or warranty of
                       --------------------
Borrower  made  or  deemed  to  be made hereunder or in the Amended and Restated
Note,  the Deed(s) of Trust  (as modified by the Modification of Deed of Trust),
any  supplemental  Deed of Trust, the Pledge Agreement(s) or any ORRI assignment
executed by Borrower and/or its subsidiaries or any other writing or certificate
furnished  by  or  on  behalf  of  Borrower  or  any of its subsidiaries for the
purposes  of  or  in  connection  with  this  Amended RCA or any such other loan
document  is  false  in  any  material  respect.

     Section  7.3.     NON-PERFORMANCE  OF CERTAIN COVENANTS AND OBLIGATIONS.  A
                       -----------------------------------------------------
default  in  the  due  performance by Borrower or any of its subsidiaries of any
covenant  or  express  Amended  RCA contained in this Amended RCA, the Note, the
Deed(s)  of  Trust  (as  modified  by  the  Modification  of Deed of Trust), any
supplemental Deed(s) of Trust, the Pledge Agreement(s) or any ORRI assignment(s)
and  continuation  of  such default beyond the applicable grace period expressly
granted,  if  any,  with  respect  thereto.

     Section  7.4.     JUDGMENTS.  Any  injunction  or administrative stay for a
                       ---------
period  of  thirty  (30)  consecutive days against Borrower's operation of those
properties  which  are  covered  by  Lender's  liens  and security interests and
represent  ten  percent  (10%)  or  more  of Lender's collateral as described in
Section  1.6  of  this  Amended RCA, or any judgment or order for the payment of
money  in excess of $250,000.00 shall be rendered against Borrower or any of its
collateral  subsidiaries  hereunder and either (a) enforcement proceedings shall
have been commenced by any creditor upon such judgment or order, (b) there shall
be any period of ten (10) consecutive days during which a stay of enforcement of
such judgment or order, by reason of a pending appeal or otherwise, shall not be
in  effect,  (c)  the  judgment  has not been superseded by the filing of a bond
prescribed  under  the laws of the jurisdiction where the judgment originated or
where  the  judgment  is  sought  to  be  enforced

     Section  7.5.     BANKRUPTCY,  INSOLVENCY,  ETC.  Borrower shall (a) become
                       -----------------------------
insolvent,  be  declared  bankrupt  (involuntary  or  voluntary) or generally be
unable  to  pay,  or  admit in writing its inability or unwillingness to pay its
debts  as  they  become  due,  (b)  apply  for, consent to, or acquiesce in, the
appointment  of  a  trustee,  receiver,  sequestrator  or  other  custodian  for
Borrower,  the  Leases  or  any other property of any thereof, or make a general
assignment for the benefit of creditors, (c) in the absence of such application,
consent or acquiescence, permit or suffer to exist the appointment of a trustee,
receiver,  sequestrator or other custodian for Borrower, any of its Subsidiaries
or  for the Leases or any part thereof, and such trustee, receiver, sequestrator
or  other  custodian shall not be discharged within sixty (60) days or an action
commenced within such period seeking such discharge and prosecuted in good faith
to  conclusion.

     Section  7.6     REMEDIES  OF  LENDER.  Upon  an event of default described
                      --------------------
above  in this Article, Lender shall, prior to exercising the remedies described
herein,  provide  Borrower  with

                                       19
<PAGE>
written  notice  specifying  in reasonable detail the event of default which has
occurred  and  stating  that  it  intends  to exercise remedies provided in this
Section.  Borrower  shall  then  have  five  (5)  days in the case of a monetary
default,  and  twenty  (20)  days  in  the case of a non-monetary default, after
receipt  of such notice to cure or cause to be cured such default and to provide
Lender with notice and reasonable documentation that it has cured or cause to be
cured  such  Event  of Default.  If Borrower does not provide such proper notice
and  evidence,  then Lender may immediately by notice to Borrower declare all or
any  portion  of  the  outstanding  principal  amount  under  the Note and other
obligations  to  be  due  and payable whereupon the full unpaid amount under the
Note  and  other obligations which shall be so declared due and payable shall be
and  become  immediately  due  and  payable,  without  further notice, demand or
presentment.   Lender is further authorized, after the passage of the particular
cure  period,  to perform or cause to be performed such act or take such action,
                                                                               =
or pay such money that Lender deems necessary or desirable to cure such Event of
Default,  and  any  expenses  so incurred by Lender and any money so paid by the
Lender  shall  be  a  demand  obligation owing by Borrower to the Lender and the
Lender,  upon  making  such payment, shall be subrogated to all of the rights of
the Person receiving such payment.  Each amount due and owing by Borrower to the
Lender  pursuant  to  this  Amended  RCA  or  any other loan document shall bear
interest  from  the date of notice to Borrower of such expenditure or payment or
other  occurrence which gives rise to such amount being owed to the Lender until
paid  at  the  Note interest rate (as the same may change from time to time as a
variable  rate)  plus nine percent (9%) per annum, and all such amounts together
with such interest thereon shall become part of the obligations evidenced by the
Note  and  deemed  secured  by  the  Deed(s)  of  Trust  and all other documents
described or contemplated by this Amended RCA as security for the obligations of
Borrower and its subsidiaries.  Upon demand, after the occurrence of an event of
default,  Borrower  shall  reimburse  Lender for all reasonable amounts expended
(including  the  fees  and  out-of-pocket  expenses  of  counsel)  in connection
therewith,  as  a  result  of  or  in  connection with its exercise of remedies,
together  with  interest  on such amounts at the Note interest rate (as the same
may  change  from  time  to  time)  from  the  date  incurred  until reimbursed.

                                  ARTICLE VIII

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

     Section  8.1.     EXPENSES;  INDEMNIFICATION.  Borrower  agrees  to  pay on
                       --------------------------
demand  all  costs  and  expenses  incurred  by  Lender  in  connection with the
preparation,  negotiation,  and  execution  of  this Amended RCA and any and all
amendments,  modifications,  and supplements hereto.  Borrower agrees to pay and
to  hold  Lender  harmless  from  and against all excise, sales, stamp, or other
taxes (but not Federal or State income taxes) and all fees payable in connection
with this Amended RCA or the transactions contemplated hereby, and agree to hold
Lender  harmless  from  and  against  any  and  all  present or future claims or
liabilities with respect to or resulting from Borrower performing or delaying in
performing  their  obligations  under  this  Amended  RCA.

     Section 8.2.     NO WAIVER; CUMULATIVE REMEDIES.  No failure on the part of
                      ------------------------------
Lender  to  exercise  and no delay in exercising,  and no course of dealing with
respect  to,  any  right,  power,  or

                                       20
<PAGE>
privilege  under  this  Amended RCA shall operate as a waiver thereof, nor shall
any  single  or  partial  exercise  of any right, power, or privilege under this
Amended  RCA  preclude  any other or further exercise thereof or the exercise of
any  other  right, power, or privilege.  The rights and remedies provided for in
this  Amended  RCA  are  cumulative and not exclusive of any rights and remedies
provided  by  law.

     Section 8.3.     SUCCESSORS AND ASSIGNS.  This Amended RCA shall be binding
                      ----------------------
upon  and  inure  to  the  benefit  of  Borrower, Anadarko Petrosearch, Guidance
Petrosearch,  and  Lender  and  their respective successors, and assigns, except
that  Borrower, Anadarko Petrosearch and Guidance Petrosearch may not assign any
of  its  rights  or obligations under this Amended RCA without the prior written
consent  of  Lender,  which  consent  shall  not  be  unreasonably  withheld.

     Section  8.4.     AMENDMENT;  ENTIRE  AMENDED RCA.  This Agreement together
                       -------------------------------
with all documents described or referenced in this Agreement embodies the entire
Amended  RCA  among the parties hereto and supersedes all prior Amended RCAs and
understandings,  if  any, relating to the subject matter hereof.  The provisions
of  this  Amended  RCA may be amended or waived only by an instrument in writing
signed  by  the  parties  hereto.

     Section  8.5.     NOTICES.  Any  notice,  consent,  or  other communication
                       -------
required  or  permitted to be given under this Amended RCA to Lender or Borrower
must  be in writing and delivered in person or mailed by registered or certified
mail,  return  receipt  requested,  postage  prepaid,  as  follows:

     To Lender:                  Fortuna Asset Management, LLC
                                 1300 Bristol Street
                                 Newport Beach, CA 92660
                                 Attention: Karen Beth Brenner, Managing Member
                                 FAX: (949) 476-3098

             (if by mail)        P.O. Box 9109
                                 Newport Beach, CA 92658

     With Copy To:               Barry L. Racusin, P.C.
                                 Racusin & Wagner, L.L.P.
                                 3100 Phoenix Tower
                                 3200 Southwest Freeway
                                 Houston, Texas 77027
                                 FAX: (713) 626-9313

     With Copy To:               R. S. Michaels
                                 Northamerican Sureties, Ltd.
                                 5190 Neil Road, Suite 430
                                 Reno, Nevada 89502
                                 FAX: (323) 857-0094

                                       21
<PAGE>
                                     To Borrower, Anadarko,
     or Guidance Petrosearch:    Petrosearch Energy Corporation
                                 675 Bering Drive, Suite 200
                                 Houston, Texas 77057
                                 Attention: President
                                 FAX: (713) 961-9338

Any  such  notice,  consent,  or  other communication shall be deemed given when
delivered  in  person  or,  if  mailed,  when  duly  deposited  in  the  mails.

     SECTION  8.6.    APPLICABLE LAW.  THIS AMENDED RCA SHALL BE GOVERNED BY AND
                      --------------
CONSTRUED  IN  ACCORDANCE  WITH  THE  LAWS  OF  THE  STATE  OF  TEXAS.

     Section  8.7.     HEADINGS.  The  headings, captions, and arrangements used
                       --------
in  this  Amended  RCA  are  for  convenience  only  and  shall  not  affect the
interpretation  of  this  Amended  RCA.

     Section  8.8.     SURVIVAL  OF  REPRESENTATIONS  AND  WARRANTIES.  All
                       ----------------------------------------------
representations  and  warranties  made in this Amended RCA or in any certificate
delivered  pursuant  hereto  shall  survive  the  execution and delivery of this
Amended  RCA,  and  no investigation by  Lender shall affect the representations
and  warranties  or  the  right  of  Lender  to  rely  upon  them.

     Section  8.9.     COUNTERPARTS.  This  Amended  RCA  may be executed in any
                       ------------
number  of  counterparts,  each of which shall be deemed an original, but all of
which  together  shall  constitute  one  and  the  same  instruments.

     Section 8.10.     SEVERABILITY.  Any provision of this Amended RCA which is
                       ------------
prohibited or unenforceable in any jurisdiction shall,  as to such jurisdiction,
be  ineffective  to  the  extent of such prohibition or unenforceability without
invalidating  the  remaining  provisions  of  this  Amended  RCA,  and  any such
prohibition  or  unenforceability  in  any  jurisdiction shall not invalidate or
render  unenforceable  such  provision  in  any  other  jurisdiction.

     Section  8.11.  USA  PATRIOT ACT COMPLIANCE.  This Amended RCA is expressly
                     ---------------------------
subject  to the provisions  of the USA Patriot Act, PublicLaw107-56, signed into
law  October  26,  2001,  and the resulting amendments to the various and sundry
federal  statutes  resulting  from  its  provisions.

     Section  8.12.  NO  ORAL  AMENDED RCAS.  THIS AMENDED RCA TOGETHER WITH THE
                     ----------------------
DOCUMENTS DESCRIBED OR REFERENCED HEREIN REPRESENT THE FINAL AMENDED RCA BETWEEN
THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT  ORAL  AMENDED  RCAS  OF  THE  PARTIES.  THERE  ARE NO UNWRITTEN ORAL
AMENDED  RCAS  BETWEEN  THE  PARTIES.

                                       22
<PAGE>
     Executed as of the Effective Date above written.

SIGNATURES APPEAR ON FOLLOWING PAGE

                                       23
<PAGE>
                                      "Borrower"

                                 PETROSEARCH ENERGY CORPORATION

                                 By:
                                     ------------------------------------
                                     Richard D. Dole, President and CEO

                                      "Anadarko Petrosearch"

                                 ANADARKO PETROSEARCH, L.L.C.

                                 By:
                                     ------------------------------------
                                     Richard D. Dole, Manager

                                            "Guidance Petrosearch"

                                 GUIDANCE PETROSEARCH, L.L.C.

                                 By:
                                     ------------------------------------
                                     Richard D. Dole, Manager

                                      "Lender"

                                 FORTUNA ENERGY, L.P.
                                 BY: FORTUNA ASSET MANAGEMENT, LLC
                                        Its General Partner

                                 By:
                                     ------------------------------------
                                     Karen Beth Brenner, Managing Member

                                       24
<PAGE>
SCHEDULE  OF  ADVANCES

The  following  table  outlines  the  expected  schedule  of  advances

<TABLE>
<CAPTION>
                                   Available for   Total Expected
Date            Existing Balance     New Draws        Advances
--------------  -----------------  --------------  ---------------
<S>             <C>                <C>             <C>
Effective Date  $         825,000  $    2,700,000  $     3,525,000
1/1/06                             $    2,300,000  $    5,825 ,000
4/1/06                             $    2,200,000  $     8,025,000
7/1/06                             $    1,975,000  $    10,000,000
</TABLE>

SCHEDULE OF PROPERTIES IN EIGHT PROSPECT PACKAGE:

AKG Burleson, Burleson County, Texas
ADG Tait, Colorado County, Texas
Rodney Island, Tensas Parish, Louisiana
Gruman, Stark County, North Dakota
Dome Pickens - Orig., Yazoo County, Mississippi
Dome Pickens-Chan., Yazoo County, Mississippi
NW Pickens, Madison and Yazoo Counties, Mississippi
Deason, Madison and Yazoo Counties, Mississippi

                                       25

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]