Document:

<PAGE>

[LOGO]                             BORROWER
                      FIRST EXCHANGE CORPORATION

                                                                COMMERCIAL
                                                            REVOLVING OR DRAW
                                                            NOTE-VARIABLE RATE

                                   ADDRESS
                         2470 GRAY FALLS, SUITE 120
                         HOUSTON, TX 77077

                         TELEPHONE NO.           IDENTIFICATION NO.
                          281-556-5656           76-0364099
<TABLE>
<CAPTION>
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OFFICER             INTEREST        PRINCIPAL AMOUNT/       FUNDING/        MATURITY        CUSTOMER        LOAN
INITIALS              RATE            CREDIT LIMIT      AGREEMENT DATE        DATE           NUMBER         NUMBER
<S>                 <C>             <C>                 <C>                 <C>             <C>            <C>
TS/bw               VARIABLE        $100,000.00         10/29/98            10/29/99
--------------------------------------------------------------------------------------------------------------------
</TABLE>

                                 PROMISE TO PAY

FOR VALUE RECEIVED, Borrower promises to pay to the order of Lender indicated
above the principal amount of ONE HUNDRED THOUSAND AND NO/100 Dollars
($100,000.00) or, if less, the aggregate unpaid principal amount of all
advances made by the Lender to the Borrower, plus interest on the unpaid
principal balance at the rate and in the manner described below. All amounts
received by Lender shall be applied first to expenses, then to accrued unpaid
interest, and then to outstanding principal or in any other manner as
determined by Lender, in Lender's sole discretion, as permitted by law.

INTEREST RATE: This Note has a variable rate feature. Interest on the Note
may change from time to time if the Index Rate identified below changes.
Interest shall be computed on the basis of 360 days and the actual number of
days per year (and in any event, 365 or 366 days per year during periods when
the Maximum Lawful Rate which is defined on the reverse is in effect) and the
actual number of days elapsed. So long as there is no default under this
Note, interest on this Note shall be calculated at the variable rate of ONE
AND 500/1000 percent (1.500%) per annum over the Index Rate, provided that
such rate shall not exceed the Maximum Lawful Rate. The initial Index Rate is
currently EIGHT AND NO/1000 percent (8.000%) per annum. Therefore, the
initial interest rate on this Note shall be NINE AND 500/1000 percent
(9.500%) per annum. Any change in the interest rate resulting from a change
in the Index Rate will be effective on: the actual date of change.

INDEX RATE: The Index Rate for this Note shall be:

The prime rate as published in The Wall Street Journal's "Money Rates" table.
If multiple prime rates are quoted in the table, then the highest prime rate
will be the Index Rate.

If the Index becomes unavailable during the term of the loan, Lender may
substitute another index which is similar.

MINIMUM RATE/MAXIMUM RATE: The minimum interest rate on this Note shall be n/a
percent (n/a%) per annum. The Maximum interest rate on this Note shall not
exceed EIGHTEEN AND NO/1000 percent (18.000%) per annum, or the Maximum
Lawful Rate, whichever is less.

DEFAULT RATE: In the event of a default under this Note, the Lender may, in
its sole discretion, determine that all amounts owing to Lender shall bear
interest as follows:

18.00

or the Maximum Lawful Rate, whichever is less.

PAYMENT SCHEDULE: Borrower shall pay the principal and interest according to
the following schedule:

INTEREST ONLY PAYMENTS BEGINNING NOVEMBER 29, 1998 AND CONTINUING AT MONTHLY
TIME INTERVALS THEREAFTER. A FINAL PAYMENT OF THE UNPAID PRINCIPAL BALANCE
PLUS ACCRUED INTEREST IS DUE AND PAYABLE ON OCTOBER 29, 1999.

All payments will be made to Lender at its address in the county described above
and in lawful currency of the United States of America.

PREPAYMENT: This Note may be prepaid in part or in full on or before its
maturity date. If this Note contains more than one installment, any partial
prepayment will not affect the due date or the amount of any subsequent
installment, unless agreed to, in writing, by Borrower and Lender. If this
Note is prepaid in full, there will be: /X/ No prepayment penalty.

/ / A prepayment penalty of:

LATE CHARGE: If an installment is received more than n/a days late, Borrower
will be charged a late charge of n/a% of the Installment. Borrower will pay this
late charge only once on any installment.

SECURITY: To secure the payment and performance of obligations incurred under
this Note, Borrower grants Lender a security interest in, and pledges and
assigns to Lender all of Borrowers rights, title, and interest in all monies,
instruments, and savings, checking, and other deposit accounts of Borrower's,
(excluding IRA, Keogh, and trust accounts and deposits subject to tax
penalties if so assigned), that are now or in the future in Lenders custody
or control. Upon default, and to the extent permitted by applicable law,
Lender may exercise its security interest in all such property which shall be
in addition to and cumulative of Lender's right of common law setoff. /X/ if
checked, the obligations under this Note are also secured by a lien and/or
security interest in the property described in the documents executed in
connection with this Note as well as any other property designated as
security for this Note now or in the future.

DISHONORED CHECK CHARGE: Borrower will pay a processing fee of $15.00 if
any check provided to Lender as payment on this loan is dishonored and
returned.

REVOLVING OR DRAW FEATURE: This Note possesses a revolving or draw feature as
indicated below.

/X/ This Note possesses a revolving feature. Borrower shall be entitled to
borrow up to the full principal amount of the Note from time to time during
the term of this Note.

/ / This Note possesses a draw feature. Borrower shall be entitled to make
one or more draws under this Note. The aggregate amount of such draws shall
not exceed the full principal amount of this Note.

Lender shall maintain a written ledger of the amounts loaned to and repaid by
Borrower under this Note. The aggregate unpaid principal amount shown on such
ledger shall be rebuttable presumptive evidence of the outstanding principal
amount owing and unpaid on this Note. The Lender's failure to record the date
and amount of any advance on such ledger shall not limit or otherwise affect
the obligations of the Borrower under this Note to repay the outstanding
principal amount of the advances together with all accrued, unpaid interest
thereon. Lender shall not be obligated to provide Borrower with a copy of the
ledger on a periodic basis, however, Borrower shall be entitled to inspect or
obtain a copy of the ledger during Lender's business hours.

CONDITIONS FOR ADVANCES: Borrower shall be entitled to borrow monies under this
Note (subject to the limitations described above) under the following
conditions:

RENEWAL: If checked /X/ this Note is given in renewal of, but not in novation
or discharge of loan number 248712801016725.

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BORROWER ACKNOWLEDGES THAT BORROWER HAS READ, UNDERSTANDS, AND AGREES TO THE
TERMS AND CONDITIONS OF THIS NOTE INCLUDING THE PROVISIONS ON THE REVERSE SIDE.
BORROWER ACKNOWLEDGES RECEIPT OF AN EXACT COPY OF THIS NOTE.
THIS NOTE AND RELATED DOCUMENTS HAVE BEEN SIGNED IN THE COUNTY OF LENDER'S
ADDRESS UNLESS OTHERWISE SPECIFIED: HARRIS

NOTE DATE:       OCTOBER 29, 1998

BORROWER: FIRST EXCHANGE CORPORATION   BORROWER:

------------------------------------   ---------------------------------------
ROGERS E. BEALL
CHAIRMAN

BORROWER:                              BORROWER:

------------------------------------   ---------------------------------------

BORROWER:                              BORROWER:

------------------------------------   ---------------------------------------

BORROWER:                              BORROWER:

------------------------------------   ---------------------------------------<PAGE>

EXHIBIT 10.3

                              EMPLOYMENT AGREEMENT

        THIS AGREEMENT dated effective as of January 1, 1999, between Fortesa
Corporation, a Texas corporation (the "Employer"), and Hayne S. Blakely (the
"Employee");

                                  WITNESSETH:

        1.      EMPLOYMENT TERM. The Employer hereby employs the Employee,
subject to earlier termination as provided in Section 7 hereof, for the
period commencing on January 1, 1999 and ending on December 31, 2001 (the
"term of this Agreement"). This agreement will automatically renew for a term
of one year upon the anniversary date unless cancelled by either party in
writing no less than sixty days in advance of the anniversary date. The
Employee agrees to accept such employment and to perform the services
specified herein, all upon the terms and conditions hereinafter stated.

        2.      DUTIES. The Employee shall serve the Employer in an executive
capacity as President and shall report to, and be subject to the general
direction and control of, the CEO directly and the Board of Directors
indirectly of the Employer. The Employee shall perform the executive,
management and administrative duties as are required to administer
effectively the needs of the Employer. If the Employee in the future is
elected an officer with a different designation or director of the Employer
during the term of this Agreement, the Employee, after receipt of formal
notice of such designation and acceptance of said designation, will serve in
such capacity or capacities without additional compensation. The Employee
also agrees to perform such other services for the Employer and for any
subsidiary or affiliated corporations of the Employer or for any oil and gas
Partnerships or joint ventures in which the Employer has an interest, as the
CEO of the Employer and the Board of Directors of the Employer shall from
time to time specify. The term "Employer" as used hereinafter shall be
deemed to include and refer to Fortesa Corporation and all such subsidiaries,
parent corporation and affiliated corporations.

        3.      EXTENT OF SERVICE. The Employee on a full time basis shall
devote to the business of the Employer his best efforts, attention and energy
as shall be required to perform the duties of President and the other duties
assigned by the CEO and or the Board of Directors. The Employee has other
activities which he serves a Director or Officer on a pro bono basis but is
not in direct competition or conflict with the business activities of the
Employer. It is understood that the Employee shall continue to maintain those
positions provided those activities do not require a level of attention and
energy by the Employee such that a substantial and/or material conflict is
created with the business of the Employer. If its is determined by the CEO
that such activities do require a level of attention and energy by the
Employee that conflicts or competes with the business of the Employer, the
CEO and/or Board of Directors shall notify the Employee in writing setting
forth the conflict and setting a reasonable timeframe in which an acceptable
resolution of such conflicting activity must be reached. If the Employee and
Employer fail to reach an acceptable solution within the allowed timeframe
the Employee may be determined as terminated with cause as defined in Item 7(c)
herein.

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[CUTOFF COPY]
$168,000 per year, to be payable in installments in accordance with the
payroll policies of the Employer in effect from time to time during the term
of this Agreement and subject to the following conditions. The composition of
the base compensation shall consist of a minimum base salary component and an
additional amount. The additional amount excludes reimbursements from Benton
for Employee's services prior to June 1st, 1999, and is subject to the
successful efforts of creating revenues from billing or charging back the
Employee's activities to 3rd parties and/or the successful financing of the
Employer. Employee shall be entitled to an additional amount of Base Salary
component in the amount of $10,000 for his assistance upon the successful
execution of the gas Sales contract for the THIES Block in Senegal, under the
terms and provisions provided herein. Upon receipt of payment or credit
against account as payment of these activities (other components to the Base
Salary) from 3rd parties, the Employee shall receive payment for these at the
next regular pay period in accordance with payroll policies of the Employer.
Employer shall pay to Employee a minimum base salary of $7,500 per month and
the additional amount shall be equal to 40% of the gross amount billed to any
project for the Employee's activities or involvement in a project with the
maximum base compensation amount to be payable to the Employee during any one
month not exceeding $14,000. The Employee's base compensation and base salary
shall be further reviewed by the Employer on an annual basis and may be
adjusted as the Employee and the Employer may agree. Upon the execution of
this agreement the Employer shall issue to the Employee 100,000 shares of
stock in First Seismic Corporation, of which 50,000 shares shall vest monthly
over the next two years of this agreement. Should the Employee cease to be
employed for the reasons contemplated in Item 7 (c) or 7 (d) said stock shall
be determined as not being vested. Should the Employer have insufficient
cashflow or cash availability to be unable to filly compensate the Employee
for any of the cash consideration due within the time frame and manner
mentioned herein, the Employer shall grant to the Employee a secured note in
favor of the Employee to be disclosed and recorded on the financial
statements of the Employer.

        5.      BENEFITS, VACATION, ETC. The Employee shall be entitled to
the same benefits, vacation periods and sick leave as are in effect from time
to time with respect to other employees of the Employer, provided that, in no
event, shall the Employee's annual leave will be less than twenty (20) days
annually, verses the normal fifteen (15) days due other new employees.
Employee shall be entitled to participate in Employer's major medical benefit
plan at the cost and expense of the Employer. Employee shall be entitled to
life insurance in an amount equivalent to other executive employees of the
Employer. Employer shall pay Employee's dues for required professional
associations and costs and travel expenses and registration fees for
attending professional seminars necessary to maintain the Employee's
professional license provided said costs are included in the annual budget.
Employer shall pay for in-building parking, if required. Employee shall be
entitled to all other benefits and to participate in and be covered by all
such other employee benefit plans, including pension and deferred
compensation programs, if any, as are provided to other executive employees
of Employer from time to time.

        6.      BONUSES.

                (a) PROFITS BONUS. With respect to each project, joint
venture, partnership or acquisition which involves Employer's oil and gas
leasehold interests (including wells included in

<PAGE>

pooled or unitized units), it is agreed that at such time as the proceeds
from the sale of oil and gas attributable to Employer's net leasehold working
interest in such well is equal to Employer's cost of acquisition, acreage,
prospect fees and the cost of drilling, completing, equipping and operating
such property, Employee shall receive an annual cash bonus equal to 40% of
the adjusted EBITDA (adjusted for depletion, inter-company and non-cash
charges), from a project or property until the base compensation equals the
amount contemplated in Item 4 above.

                (b) DISCRETIONARY BONUS. From time to time, but not less than
once each year, preferably the first part of December, during the term of
this Agreement, the Employer will consider and may pay to the Employee such
other bonuses upon such terms and conditions as the Board of Directors of
Employer shall deem to be in its best business interest. The Employer shall
not be obligated to pay to the Employee any such bonus and the amount of any
such bonus shall be determined in the sole discretion of the CEO and/or the
Board of Directors of the Employer.

                (c) DIRECT PARTICIPATION. the Employee may request his direct
participation in projects to the Employer to an extent, and the Employer
shall consider such requests, but have no obligation to allow direct
participation in Company projects by Employee, on which Employee is working
or directing for the interests of the Employer. As of the execution of this
agreement, the Employer is not completely restructured and funded to perform
all of the obligations anticipated by the transition of Employer from a
seismic brokerage company to an independent oil company. The Employer seeks
to rely on Employee's leadership to develop and promote the acquisition of the
Company's asset base in this regard. The Employer will adopt a qualified 401K
plan for the benefit of all employees, including Employee, as soon as
practical after the funding of the Company to more adequately pursue the
endeavors anticipated herein

        7.      TERMINATION.

                (a) DEATH. If the Employee dies during the term of this
Agreement and while in the employ of Employer, this Agreement shall
automatically terminate and the Employer shall have no further obligation to
the Employee or his estate or heirs except for salary, earned vacation and
other benefits owed to the Employee. Subject to the Employee's insurability
on reasonable financial terms, the Employer shall pay for and obtain term
life insurance on the life of Employee in such amount and upon such terms as
is mutually agreeable to the Employer and Employee. Employee and Employer
equally shall have the right to name the beneficiaries of such life insurance
policy, as it is anticipated that this policy will be a key man policy having
death benefits to be shared equally by the Employee's heirs and the Employer.
This provision regarding the death of Employee controls in the event of
Employee's death and in the event that any other provisions or agreements
conflict with this provision.

                (b) DISABILITY. If during the term of this Agreement, the
Employee shall be prevented from performing his duties hereunder by reason of
disability, then the Employer, on ninety (90) days' prior notice to the
Employee, may terminate this Agreement. For purposes of this Agreement, the
Employee shall be deemed to have become disabled when the Board of Directors,
upon medical advice, shall have determined that the Employee has become
physically or mentally incapable (excluding infrequent and temporary absences
due to ordinary illness) of performing his duties under this Agreement. In
making any determination of disability pursuant to this paragraph (b), the
Board of Directors shall act upon the mutual advice of two qualified
physicians, one of whom

<PAGE>

shall be designated by the Employee and one of whom shall be designated by
the Employer. If such physicians are unable to agree as to the physical or
mental capacity of the Employee, such physicians shall designate a third
physician who, as an expert and not as an arbitrator, shall advise the Board
of Directors in such regard and whose determination in that matter shall be
conclusive and binding on the parties hereto. In the event of a termination
pursuant to this paragraph (b), the Employer shall be relieved of all its
obligations under this Agreement, except that the Employer shall pay to the
Employee or his estate in the event of his subsequent death, the Employee's
salary and benefits through the end of the 90-day period following the month
during which such disability was conclusively determined, plus accrued
vacation pay, if any. All such payments to the Employee or his estate shall
be made in the same manner and at the same times as the Employee's salary
would have been paid to the Employee had he not become disabled.

                (c) CERTAIN DISCHARGES. Prior to the end of the term of this
Agreement, the Employer may discharge the Employee for cause and terminate
this Agreement without any further liability hereunder to the Employee or his
estate, except the obligation of the Employer to pay the Employee's minimum
base salary including prorate of the 4O% bonus amount due to the date of
discharge. For purposes of this Agreement, a "discharge for cause" shall mean
a discharge resulting from a determination by the CEO and Board of Directors
that the Employee (i) has been convicted of a crime involving moral
turpitude, (ii) has regularly and willfully failed or refused to follow
written policies or directives established by the Board, (iii) has willfully
and persistently failed to attend to his duties, (iv) has committed acts
amounting to gross negligence or willful misconduct to the detriment of the
Employer or its affiliates. If the Employee shall be discharged by the
Employer for any reason other than those enumerated in this paragraph (c),
such discharge shall be deemed a "discharge without cause." In the event of a
discharge without cause or death (a), the Employer shall continue to pay the
Employee's base salary for the term of the contract and agrees to make all
payments for Employee for health insurance for Employee as were being paid by
or for the Employee upon the same terms as of the day preceding his
termination, said payments to be made under COBRA for the maximum period of
time allowed by COBRA. Further, any termination except for those enumerated
in this paragraph (c), any vesting stipulations for any compensation
contemplated herein or by subsequent agreement shall be determined as fully
vested as of the date of discharge. In the event of the Employer's insolvency
or inability at that time of being able to pay the termination costs accruing
to Employee of such event as herein specified, the Employers shall have the
option of settling any amounts still due to the Employee in common Stock at
the same per share price value as the Employers settlement of the 12% Senior
Noteholders April 1999 stock issuance.

                (d) TERMINATION BY THE EMPLOYEE. Prior to the end of the term
of this Agreement, the Employee, at his option, may terminate this Agreement
upon (i) a substantial breach by the Employer of its obligations under this
Agreement or (ii) sixty (60) days prior written notice. In the event of
termination pursuant to this paragraph (d), the Employer shall be relieved of
all of its obligations under this Agreement, except that the Employer shall
pay to the Employee the Employee's salary until the date of termination, plus
accrued vacation pay, if any.

                (e) CLOSE OF BUSINESS. Other than for insolvency as provided
above, should the business activities of Employer change and the Employee is
notified of discharge due to the close of business, merger, acquisition,
restructuring or other means prior to the end of this contract, Employee

<PAGE>

XXXXXXXXXXXXXX compensation and bonuses earned for the remaining term of the
contract, all vesting conditions pertaining to any issuance or vesting
requirement of any shares of stock or stock options shall be considered as
being fully vested. Further, the Employee shall be provided medical and life
insurance coverage for a maximum period of one year from such termination or
discharge by Employer. The Employer has the right to assign this agreement to
a successor Entity, in the event of the above business conditions, for
continuation of the employment of Employee under the same duties by such
successor entity.

        8.      CONFIDENTIAL INFORMATION. The Employee acknowledges that in
the course of his employment by the Employer he will receive certain trade
secrets, lists of customers and other confidential information and knowledge
concerning the business of the Employer which the Employer desires to
protect. The Employee understands that such information and knowledge is
confidential and he agrees not to reveal such information and knowledge to
anyone outside the Employer so long as the confidential or secret nature
thereof shall continue. The Employee further agrees during the term of this
agreement or immediately thereafter that he will at no time use any of such
information or knowledge in competing with the Employer on an opportunity,
acreage, or an arrangement that the Employer had under consideration or
agreement during the term of Employment of Employee. Upon termination of this
Agreement, the Employee shall surrender to the Employer all papers,
documents, writings and other property produced by his or coming into his
possession by or through his employment or relating to any such information
or knowledge and the Employee agrees that all such materials will at all
times remain the property of the Employer.

        9.      INDEMNIFICATION. Employee shall be indemnified and held
harmless by Employer from all claims, suits or causes of action brought or
asserted against Employee arising from his position as an officer, director,
employee or representative of Employer or from acts which he performs in good
faith on behalf of Employer, including, but not limited, payment of legal
expenses arising from the defense of such claims, suits or causes of action.

        10.     NOTICES. All notices, requests, consents and other
communications under this Agreement shall be in writing and shall be deemed
to have been delivered on the date personally delivered or on the date
mailed, postage prepaid, by certified mail, return receipt requested, or
telegraphed and confirmed if addressed to the respective parties as follows:

        If to the Employee:     Hayne S. Blakely
                                3763 Georgetown
                                Houston, Texas 77005

        If to the Employer:     Fortesa Corporation
                                Attn: Rogers E. Beall, CEO
                                2470 Gray Falls,Suite l9O
                                Houston, Texas 77077

Either party hereto may designate a different address by providing written
notice of such new address to the other party hereto.

<PAGE>

        11.     XXXXXXX PERFORMANCE. The Employee acknowledges that a remedy
at law for any breach or attempted breach of Section 8 of this Agreement will
be inadequate, agrees that the Employer shall be entitled to specific
performance and injunctive and other equitable relief in case of any such
breach or attempted breach, and further agrees to waive any requirement for
the securing or posting of any bond in connection with the obtaining of any
such injunctive or any other equitable relief.

        12.     SEVERABILITY. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law but if any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such provision or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Agreement.

        13.     ASSIGNMENT. This Agreement may not be assigned by the
Employee. Neither the Employee, his spouse nor estate shall have any right to
commute, encumber or dispose of any right to receive payments hereunder, it
being that such payments and the right thereto are nonassignable and
nontransferable.

        14.     BINDING EFFECT. Subject to the provisions of Section 13 of
this Agreement, this Agreement shall be binding upon and inure to the benefit
of the parties hereto, the Employee's heirs and personal representatives, and
the successors and assigns of the Employer.

        15.     GOVERNING LAW. This Agreement shall be construed and enforced
in accordance with and governed by the law of the State of Texas.

        16.     PRIOR EMPLOYMENT AGREEMENTS. The Employee represents and
warrants to the Employer that he has fulfilled all of the terms and
conditions of all prior employment agreements and at the time of execution of
this Agreement is not a party to any other employment agreement.

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement
in multiple originals in Houston, Texas as of the date and year first above
written.

                                        FORTESA CORPORATION

                                        By: /s/ Rogers E. Beall
                                           ----------------------------------

                                        Name:   Rogers E. Beall
                                             --------------------------------

                                        Title:        CEO
                                              -------------------------------

                                        HAYNE S. BLAKELY

                                        By: /s/ Hayne S. Blakely
                                           ----------------------------------

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