Document:

EX-10.4

Exhibit 10.4

FIRST AMENDMENT TO THE

SCS TRANSPORTATION, INC.

2002 SUBSTITUTE STOCK OPTION AND SHARE AWARD PLAN

WHEREAS, SCS Transportation, Inc. (“SCS”) previously adopted the SCS Transportation,
Inc. 2002 Substitute Stock Option and Share Award Plan (the “Plan”) for the benefit of
certain eligible employees;

WHEREAS, Section 8 of the Plan affords the Board of Directors of SCS (the “Board”) the
authority to amend the Plan; and

WHEREAS, the Board desires to amend the Plan, effective immediately, to afford the Board’s
Compensation Committee (the “Committee”) authority to modify the terms of the Awards in
such manner as the Committee, in its sole and absolute discretion, deems appropriate subject to the
terms of the Plan, and to make certain other changes to the Plan;

THEREFORE, effective immediately, the Plan is amended as follows:

	 	1.	 	A new Section 2.9 is added:

2.9 “Substitute Award” means any substitute stock option agreement that the Company or the
Committee may choose to grant under Section 3 of this Plan.

	 	2.	 	A new Section 3.4 is added:

The Committee may at any time make such modifications to the terms of a Substitute Award as
it shall deem advisable, including extending the period of time in which a Substitute Award
may be exercised. No modification hereunder may, without the consent of the Participant to
whom the Substitute Award has been granted, adversely affect the rights of such Participant
under the Substitute Award.

IN WITNESS WHEREOF, this First Amendment to the Plan has been duly executed as of the      
day of June, 2006.

SCS Transportation, Inc.

By:     

Name:     

Title:EX-10.1

June 16, 2006

	 	 	 	 	 
	Laurence W. Goldberg
Director, Receivables Management
BDO Seidman, LLP
4035 Premier Drive
	 	Reference Number:  20060612
	High Point, NC 27265
	 	Via U.S. Mail

	 	 	RE: Payment of Smart Online, Inc. Audit Fees

Dear Mr. Goldberg:

I am writing in regard to the amounts that BDO Seidman, LLP (“BDO”) claims are owed by Smart
Online, Inc. (“SOLN”) for the services performed by BDO in connection with BDO’s duties as SOLN’s
independent certified public accountant. Those services were performed under the terms of a letter
agreement between BDO and SOLN, dated May 27, 2004 (the “Audit Agreement”). Currently, BDO is
claiming that SOLN still owes $246,855 in connection with these services under the Audit Agreement
(the “Service Fees”).

In settlement of that amount, SOLN hereby agrees to pay BDO a total of one-hundred twenty
thousand dollars ($120,000) in twelve (12) equal monthly installments of ten thousand dollars
($10,000) (each such payment an “Installment Payment”). The first Installment Payment shall be due
on the last day of the month of the date that BDO signs this letter agreement. Each subsequent
Installment Payment shall be due and payable on the last day of each month following the month of
the Effective Date.

By executing this letter agreement in the space provided below, BDO accepts the payment terms
as set forth above as payment in full of the Service Fees. In the event BDO does not
receive an Installment Payment in accordance with the terms of this letter agreement, BDO shall
have the right to seek payment of $246,855, less any amounts paid to BDO by SOLN. In the event
that BDO does not receive an Installment Payment in accordance with the terms set forth above, BDO
shall notify SOLN, and SOLN shall have ten (10) days to cure. Nothing in this letter agreement
shall be construed as an acknowledgement or admission by either party of any liability whatsoever,
including without limitation the amount of the Service Fees owed to BDO; nor shall this letter
agreement be construed as a waiver or in any other manner adversely effect any other rights not
specifically set forth herein held by either party.

Very truly yours,

/s/ Michael Nouri

Michael Nouri

President and CEO

Agreed and accepted:

BDO SEIDMAN, LLP

By: /s/ Laurence W. Goldberg

Name: Laurence W. Goldberg

Title: Director – Receivables ManagementExhibit 10.1

                            ASSET PURCHASE AGREEMENT

                                  BY AND AMONG

                          J&P FAMILY PROPERTIES, LTD.,
                           LARA ENERGY, INC., SELLERS

                                       AND

                           GULF COAST OIL CORPORATION,
                                      BUYER

<PAGE>

                                TABLE OF CONTENTS

ARTICLE 1.  DEFINITIONS                                                       1

ARTICLE 2.  SALE AND TRANSFER OF ASSETS:  CLOSING                             7

   2.01.     ASSETS.                                                          7

   2.02.    PURCHASE PRICE.                                                   7
   2.03.    CLOSING.                                                          7
   2.04.    CLOSING OBLIGATIONS.                                              7
   2.05.    ALLOCATIONS AND ADJUSTMENTS.                                      9
   2.06.    ASSUMPTION.                                                      11
   2.07.    DELIVERY OF RECORDS.                                             11
   2.08.    SUSPENDED FUNDS.                                                 12
   2.09.    AGREEMENT REGARDING FUTURE ACTIVITY IN THE AREA OF
            MUTUAL INTEREST                                                  13

ARTICLE 3.  REPRESENTATIONS AND WARRANTIES OF SELLERS                        13
   3.01.    ORGANIZATION AND GOOD STANDING.                                  13
   3.02.    AUTHORITY; NO CONFLICT.                                          13
   3.03.    BANKRUPTCY.                                                      14
   3.04.    TAXES.                                                           14
   3.05.    LEGAL PROCEEDINGS; ORDERS.                                       15
   3.06.    ENVIRONMENTAL.                                                   15
   3.07.    PERSONAL PROPERTY.                                               15
   3.08.    TITLE TO PROPERTIES.                                             16
   3.09.    BROKERS.                                                         16
   3.10.    TAX SHARING AGREEMENTS.                                          16
   3.11.    CONSENTS.                                                        16
   3.12.    GAS IMBALANCES, PREPAYMENT ARRANGEMENTS; TAKE-OR-PAY.            16
   3.13.    STATUS OF LEASES.                                                16
   3.14.    CONTRACTS.                                                       16

ARTICLE 4.  REPRESENTATIONS AND WARRANTIES OF BUYER                          17
   4.01.    ORGANIZATION AND GOOD STANDING.                                  17
   4.02.    AUTHORITY; NO CONFLICT.                                          17
   4.03.    CERTAIN PROCEEDINGS.                                             18
   4.04.    KNOWLEDGEABLE INVESTOR.                                          18
   4.05.    SECURITIES LAWS.                                                 18
   4.06.    DUE DILIGENCE                                                    18
   4.07.    BASIS OF BUYER'S DECISION                                        18
   4.08.    MATERIAL FACTOR                                                  18

ARTICLE 5.  CONVENANTS OF SELLERS                                            19
   5.01.    ACCESS AND INVESTIGATION.                                        19
   5.02.    OPERATION OF THE ASSETS.                                         19
   5.03.    INSURANCE.                                                       20
   5.04.    CONSENT AND WAIVERS.                                             20
   5.05.    EXTRAORDINARY EVENTS.                                            20
   5.06.    MATERIAL FACTOR.                                                 21

<PAGE>

ARTICLE 6.  CONVENANTS OF BUYER                                              21
   6.01.    NOTIFICATION.                                                    21

ARTICLE 7.  IDEMNIFICIATION; REMEDIES                                        21
   7.01.    SURVIVAL.                                                        21
   7.02.    INDEMNIFICATION AND PAYMENT OF DAMAGES BY SELLERS;
            JOINT AND SEVERAL LIABILITY OF MR. JOHN E. HEARN, JR.
            AND MR. JIM WHEELER                                               2
   7.03.    INDEMNIFICATION AND PAYMENT OF DAMAGES BY BUYER.                 22
   7.04.    TIME LIMITATIONS.                                                23
   7.05.    LIMITATIONS ON AMOUNT--SELLERS.                                  23
   7.06.    LIMITATIONS ON AMOUNT--BUYER.                                    23
   7.07.    PROCEDURE FOR INDEMNIFICATION--THIRD PARTY CLAIMS.               23
   7.08.    PROCEDURE FOR INDEMNIFICATION--OTHER CLAIMS.                     24
   7.09.    EXTENT OF REPRESENTATIONS AND WARRANTIES.                        24
   7.10.    COMPLIANCE WITH EXPRESS NEGLIGENCE TEST.                         25
   7.11.    LIMITATIONS OF LIABILITY.                                        25

ARTICLE 8.  TITLE MATTERS AND ENVIRONMENTAL MATTERS                          26
   8.01.    TITLE EXAMINATION AND ACCESS.                                    26
   8.02.    DEFENSIBLE TITLE.                                                26
   8.03.    TITLE DEFECTS.                                                   27
   8.04.    ADJUSTMENTS.                                                     27
   8.05.    ENVIRONMENTAL AUDIT                                              27
   8.06.    REMEDIES FOR VIOLATIONS OF ENVIRONMENTAL LAWS                    28
   8.07.    RIGHT OF TERMINATION.                                            28
   8.08.    DISPUTES.                                                        28
   8.09.    CASUALTY LOSS AND CONDEMNATION.                                  29
   8.10.    SECURING ASSIGNMENT OF WHEELER ASSIGNMENt                        30

ARTICLE 9.  GENERAL PROVISIONS                                               30
   9.01.    EXPENSES.                                                        30
   9.02.    NOTICES.                                                         30
   9.03.    JURISDICTION; SERVICE OF PROCESS.                                31
   9.04.    FURTHER ASSURANCES.                                              31
   9.05.    WAIVER.                                                          31
   9.06.    ENTIRE AGREEMENT AND MODIFICATION.                               32
   9.07.    ASSIGNMENTS, SUCCESSORS, AND NO THIRD-PARTY RIGHTS.              32
   9.08.    SEVERABILITY.                                                    32
   9.09.    SECTION HEADINGS, CONSTRUCTION.                                  32
   9.10.    TIME OF ESSENCE.                                                 32
   9.11.    GOVERNING LAW.                                                   33
   9.12.    COUNTERPARTS.                                                    33
   9.13.    WAIVER OF TEXAS DECEPTIVE TRADE PRACTICES - CONSUMER
            PROTECTION ACT.                                                  33
   9.14.    ARBITRATION.                                                     33
   9.15.    TAX DEFERRED EXCHANGE.                                           34
   9.16.    PRESS RELEASE.                                                   34

<PAGE>

                            ASSET PURCHASE AGREEMENT
                            ------------------------

     This Asset Purchase Agreement ("Agreement") is made as of June 30, 2006, by
and among J&P FAMILY PROPERTIES, LTD., a Texas Limited Partnership, LARA ENERGY,
INC.,  a  Texas  corporation,  (collectively  "SELLERS")  and  GULF  COAST  OIL
CORPORATION,  a  Delaware  corporation  ("BUYER").

                                    RECITALS

     Sellers  desire  to sell and Buyer desires to purchase, undivided interests
in  certain  oil,  gas, and mineral properties and related assets and contracts,
for  the  consideration  and  on  the  terms  set  forth  in  this  Agreement.

                                    AGREEMENT

     The  parties,  intending  to  be  legally  bound,  agree  as  follows:

                                    ARTICLE 1

                                   DEFINITIONS

     For  purposes of this Agreement, in addition to the other Capitalized terms
defined  herein,  the following terms have the meanings specified or referred to
in  this  Article  1:

     "AFFILIATE"  --  any  Person  directly  or  indirectly  controlled  by,
      ---------
controlling,  or  under  common  control  with,  Buyer or Sellers, including any
subsidiary  of  Buyer  or Sellers and any "affiliate" of Buyer or Sellers within
the  meaning  of  Reg.  Sec.240.12b-2 of the Securities Exchange Act of 1934, as
amended,  with  "control,"  as  used  in  this  definition,  meaning possession,
directly  or  indirectly,  of  the  power  to  direct  or cause the direction of
management, policies or action through ownership of voting securities, contract,
voting trust, or membership in management or in the group appointing or electing
management  or  otherwise  through  formal  or informal arrangements or business
relationships.

     "ALLOCATED  VALUES"  --the  values  assigned among the Asset categories set
      -----------------
forth  on  Schedule  2.02.

     "ASSETS"  -the  Subject  Leases,  Wells,  and  Contracts.
      ------

     "BREACH"--a  "Breach"  of a representation, warranty, covenant, obligation,
      ------
or  other  provision  of  this Agreement or any instrument delivered pursuant to
this  Agreement  will  be  deemed  to  have occurred if there is or has been any
inaccuracy  in  or  breach  of,  or  any failure to perform or comply with, such
representation,  warranty,  covenant,  obligation,  or  other  provision.

                                        1
<PAGE>

     "BUYER'S  CLOSING  DOCUMENTS"--as  defined  in  Section  4.02.
      ---------------------------

      "CAPITAL  EXPENDITURES"-The cost  to drill, complete and hook up to sales,
       ---------------------
all  wells  drilled  after  the  Effective  Time.

     "CLOSING"--as  defined  in  Section  2.03.
      -------

     "CLOSING  DATE"--the  date  and time as of which the Closing actually takes
      -------------
place.

     "CONSENT"--any  approval,  consent,  ratification,  waiver,  or  other
      ------
authorization  (including  any  Governmental  Authorization)  relating  to  the
conveyance  of  the  Assets  or  a  portion  thereof.

     "CONTEMPLATED  TRANSACTIONS"--all  of the transactions contemplated by this
      -------------------------
Agreement,  including,  but  not  limited  to:

     (a)  the  sale  of  the  Assets  by  Sellers  to  Buyer;

     (b)  the execution,  delivery,  and  performance  of  the  Instruments  of
          Conveyance and all other instruments and documents required under this
          Agreement;

     (c)  the performance  by  Buyer  and  Sellers  of  their  respective
          covenants  and  obligations  under  this  Agreement;  and

     (d)  Buyer's  acquisition,  ownership,  and  exercise  of  control over the
     Assets.

     "CONTRACT"--any  written  agreement  or  contract  that  is legally binding
      --------
relating  to  the  Subject  Leases or Wells, including without limitation, those
listed  on  EXHIBIT  B.

     "DAMAGES"--as  defined  in  Section  7.02.
      -------

     "DEFENSIBLE  TITLE"--as  defined  in  Section  8.02.
      -----------------

     "DISCLOSURE  SCHEDULE"--the  disclosure  schedule  attached  as  EXHIBIT D.
      --------------------

     "EFFECTIVE  TIME"-DECEMBER  1,  2005,  at 7:00 a.m., Central Daylight Time.
      ---------------

     "ENCUMBRANCE"--any  charge,  equitable  interest,  privilege, lien, option,
      -----------
pledge,  security  interest, right of first refusal, or restriction of any kind.

     "ENVIRONMENT"--soil,  land  surface  or  subsurface  strata, surface waters
      -----------
(including  navigable waters, ocean waters, streams, ponds, drainage basins, and
wetlands),  groundwater,  drinking  water  supply, stream sediments, ambient air
(including  indoor  air),  plant  and  animal  life, and any other environmental
medium  or  natural  resource.

                                        2
<PAGE>

     "ENVIRONMENTAL  LAW"--any  Legal  Requirement  that requires or relates to:
      ------------------
     (a)  advising  appropriate  authorities,  employees,  and  the  public  of
          intended  or  actual releases of pollutants or hazardous substances or
          materials  that  could  have  significant  impact  on the Environment;

     (b)  preventing  or  reducing  to  acceptable  levels  the  release  of
          pollutants  or hazardous substances or materials into the Environment;

     (c)  reducing  the  quantities,  preventing  the  release,  or  minimizing
          the  hazardous  characteristics  of  wastes  that  are  generated;

     (d)  protecting  resources,  species,  or  ecological  amenities;

     (e)  reducing  to  acceptable  levels  the  risks  inherent  in  the
          transportation  of  hazardous  substances,  pollutants,  oil, or other
          potentially  harmful  substances;

     (f)  cleaning  up  pollutants  that  have  been  released,  preventing  the
          threat of release, or paying the costs of such clean up or prevention;
          or

     (g)  making  responsible  parties  pay  private  parties,  or  groups  of
          them,  for  damages  done  to  their  health  or  the  Environment, or
          permitting  self-appointed  representatives  of the public interest to
          recover  for  injuries  done  to  public  assets.

     "ENVIRONMENTAL  LIABILITIES"--any  cost,  damage,  expense,  liability,
      --------------------------
obligation,  or  other  responsibility  arising  from  or  under  either  an
Environmental  Law  or  third  party  claims  relating  to the Environment which
relates  to  the  Assets.

     "EXISTING  BURDENS"  --  the  total  of Lessor Royalty Burdens and Override
      -----------------
Burdens  attributable  to  the  Subject  Leases,  determined on a lease by lease
basis.

     "GAAP"--generally accepted United States accounting principles applied on a
      ----
consistent  basis.

     "GOVERNMENTAL  AUTHORIZATION"--any  approval,  consent,  license,  permit,
      ---------------------------
waiver,  or  other  authorization  issued,  granted,  given,  or  otherwise made
available  by or under the authority of any Governmental Body or pursuant to any
Legal  Requirement.

     "GOVERNMENTAL  BODY"--any:
      ------------------
     (a)  nation,  state,  county,  city,  town,  village,  district,  or  other
          jurisdiction  of  any  nature;

     (b)  federal,  state,  local,  municipal,  foreign,  or  other  government;
                                        3
<PAGE>

     (c)  governmental  or  quasi-governmental  authority  of  any  nature
          (including  any  governmental agency, branch, department, official, or
          entity  and  any  court  or  other  tribunal);

     (d)  multi-national  organization  or  body;  or

     (e)  body exercising,  or  entitled  to  exercise,  any  administrative,
          executive,  judicial,  legislative,  police,  regulatory,  or  taxing
          authority  or  power  of  any  nature.

     "HYDROCARBONS"--oil,  gas,  minerals,  and  other  gaseous  and  liquid
      ------------
hydrocarbons  or  any  combination  of  the  foregoing.

     "INSTRUMENT  OF  CONVEYANCE"--the  instruments  of  conveyance transferring
      --------------------------
title  to  the  Assets  in  the  form  of  EXHIBIT  C.

     "IRC"--the  Internal  Revenue  Code  of  1986  or  any  successor  law, and
      ---
regulations  issued  by  the  IRS  pursuant  to the Internal Revenue Code or any
successor  law.

     "IRS"--the  United States Internal Revenue Service or any successor agency,
      ---
and,  to  the  extent  relevant,  the  United States Department of the Treasury.

     "KNOWLEDGE"--an  individual  will  be  deemed  to  have  "Knowledge"  of  a
      ---------
particular  fact  or  other  matter if such individual is actually aware of such
fact or other matter. A Person (other than an individual) will be deemed to have
"Knowledge"  of  a  particular  fact  or  other  matter if any individual who is
serving  as  an  officer  or  director  of  such Person has, or at any time had,
Knowledge  of  such  fact  or  other  matter.

     "LEGAL  REQUIREMENT"--any  federal,  state,  local,  municipal,  foreign,
      ------------------
international,  or  multinational  law,  administrative  order,  constitution,
ordinance,  principle  of  common  law,  regulation,  statute,  or  treaty.

     "LESSOR ROYALTY BURDENS"-- as to each Subject Lease, all reserved royalties
      ----------------------
arising  under  the  terms  thereof and payable to the mineral owners in, on and
under  the  lands  covered  thereby.

     "ORDER"--any  award,  decision,  injunction,  judgment,  order,  ruling,
      -----
subpoena,  or  verdict  entered,  issued,  made,  or  rendered  by  any  court,
administrative  agency,  or  other  Governmental  Body  or  by  any  arbitrator.

     "ORDINARY  COURSE  OF BUSINESS"--an action taken by a Person will be deemed
      -----------------------------
to  have  been  taken  in  the  "Ordinary  Course of Business" if such action is
consistent  with  the past practices of such Person and is taken in the ordinary
course  of  the  normal  day-to-day  operations  of  such  Person.
                                        4
<PAGE>

     "ORGANIZATIONAL  DOCUMENTS"--(a)  the  articles  or  certificate  of
      -------------------------
incorporation  and the bylaws of a corporation; (b) the articles of organization
and  regulations  of a limited liability company; (c) the certificate of limited
partnership  and limited partnership agreement of a limited partnership; and (d)
any  amendment  to  any  of  the  foregoing.

     "OVERRIDE  BURDENS"--overriding  royalty  interests  burdening  the Subject
      -----------------
Leases  (a)  which  are  presently  of  record in the Counties in which they are
located,  or  (b)  otherwise  arise  pursuant  to  a  Contract.

     "PERMITTED  ENCUMBRANCE"--any  of  the  following:  (a)  any obligations or
      ----------------------
duties  reserved  to or vested in any municipality or other Governmental Body to
regulate  any  Asset  in any manner including all applicable Legal Requirements;
(b)  the  terms and conditions of all leases, options, servitudes, contracts for
sale,  purchase,  exchange,  refining  or  processing of Hydrocarbons, operating
agreements,  construction  agreements,  construction  and  operation agreements,
participation  agreements,  shoot-to-earn  agreements,  exploration  agreements,
partnership  agreements,  processing  agreements,  plant  agreements,  pipeline,
gathering, exchange and transportation agreements, disposal agreements, permits,
licenses  and  any  other  agreements  affecting the Assets, including those set
forth  as Contracts on Exhibit B attached hereto; (c) the Consents identified in
Part  3.13 of the Disclosure Schedule with respect to which prior to Closing (i)
waivers  or  consents  have  been obtained from the appropriate Person, (ii) the
applicable  period  of  time  for  asserting such rights has expired without any
exercise  of  such  rights, or (iii) mutually agreed upon arrangements have been
made  by  the  parties to allow Buyer to receive substantially the same economic
benefits  as  if all such waivers and consents had been obtained; (d) easements,
rights-of-way,  servitudes, permits, surface leases and other similar rights on,
over  or  in  respect of any of the Assets, as long as any such encumbrance does
not  serve to diminish Buyer's right to ingress and egress below that enjoyed by
Sellers  and  were  in  effect as of the Effective Time; (e) lessor's royalties,
overriding  royalties,  production payments, net profits interests, reversionary
interests, and similar burdens if the net cumulative effect of such burdens does
not  operate  to  reduce Sellers' entitlement to production from the Wells below
the  net  revenue  interests  set  forth in Exhibit A, (f) such other defects or
irregularities  of  title or Encumbrances as Buyer may have waived in writing or
which Buyer shall be deemed to have waived pursuant to the provisions of Section
7.03  hereof;  (g)  conventional  rights  of  reassignment obligating Sellers to
reassign  their  interests  in any portion of the Leases to a third party in the
event they intend to release or abandon such interest prior to the expiration of
the  primary  term or other termination of such interest; and (h) from and after
consummation  of  the Closing, defects and irregularities of title which existed
on  the date Sellers acquired the affected Asset, unless Buyer and Sellers agree
otherwise  in  writing  at  or  before  Closing

     "PERSON"--any  individual,  corporation  (including  any  non-profit
      ------
corporation),  general  or limited partnership, limited liability company, joint
venture,  estate, trust, association, organization, labor union, or other entity
or  Governmental  Body.

     "POST  EFFECTIVE  TIME  CREDIT"-as  defined  in  Section  2.05(a).
      -----------------------------

                                        5
<PAGE>

     "PROCEEDING"--any  action,  arbitration,  audit,  hearing,  investigation,
      ----------
litigation,  or suit (whether civil, criminal, administrative, investigative, or
informal)  commenced,  brought,  conducted,  or heard by or before, or otherwise
involving,  any  Governmental  Body  or  arbitrator.

     "PROPERTY  COSTS"--as  defined  in  Section  2.05(a).
      ----------------

     "PURCHASE  PRICE"--as  defined  in  Section  2.02.
      ---------------

     "REPRESENTATIVE"--with  respect  to  a  particular  Person,  any  director,
      --------------
officer,  employee,  agent, consultant, advisor, or other representative of such
Person,  including  legal  counsel,  accountants,  and  financial  advisors.

     "SELLERS'  CLOSING  DOCUMENTS"--as  defined  in  Section  3.02.
      ----------------------------

     "SUBJECT  LEASES"--the oil, gas, and mineral leases described on EXHIBIT A.
      ---------------

     "TAX"--any  tax  (including  any income tax, capital gains tax, value-added
      ----
tax,  sales  tax,  property  tax, severance tax, gift tax, or estate tax), levy,
assess-ment,  tariff,  duty  (including  any customs duty), deficiency, or other
fee, and any related charge or amount (including any fine, penalty, interest, or
addition  to  tax), imposed, assessed, or collected by or under the authority of
any  Governmental  Body  or payable pursuant to any tax-sharing agreement or any
other  Contract  relating  to  the  shar-ing  or  payment of any such tax, levy,
assessment,  tariff,  duty,  defi-ciency,  or  fee.

     "TAX  RETURN"--any  return  (including  any  information  return),  report,
      -----------
statement,  schedule,  notice, form, or other document or information filed with
or  submitted to, or required to be filed with or submitted to, any Governmental
Body in connection with the determination, assessment, collection, or payment of
any Tax or in connection with the administration, implementation, or enforcement
of  or  compliance  with  any  Legal  Requirement  relating  to  any  Tax.

     "THREATENED"--a claim, Proceeding, dispute, action, or other matter will be
      ----------
deemed  to  have  been  "Threatened"  if  any  demand or statement has been made
(orally  or  in  writing)  to  a  party  or  any  of its officers, directors, or
employees  that  would  lead  a  prudent  Person  to conclude that such a claim,
Proceeding,  dispute,  action,  or  other  matter  is  likely  to  be  asserted,
commenced,  taken,  or  otherwise  pursued  in  the  future.

     "TITLE  DEFECT"--as  defined  in  Section  8.03.
      -------------

     "VIOLATION  OF  ENVIRONMENTAL  LAWS"  --  a violation of, or the failure to
      ----------------------------------
perform  any  obligation  imposed  by,  an  Environmental  Law.

     "WELLS"-oil  and gas wells located on the Subject Leases and Prospects, and
      -----
more  particularly  described  on  EXHIBIT  A.

                                        6
<PAGE>

                                    ARTICLE 2

                      SALE AND TRANSFER OF ASSETS; CLOSING

     2.01. ASSETS. Subject to the terms and conditions of this Agreement, at the
           ------
Closing,  Sellers  shall  sell  and  transfer  the  Assets  to  Buyer.

     2.02.  PURCHASE  PRICE.  The  purchase  price  for  the Assets will be FOUR
            ---------------
MILLION  FOUR  HUNDRED  FIFTY  THOUSAND  DOLLARS  ($4,450,000.00) (the "Purchase
Price").  The  Purchase Price for the Assets will be allocated among each of the
Assets,  as set forth in Schedule 2.02 hereto. The amount so allocated to a part
of  the Assets will constitute the Allocated Values for such part of the Assets.
Sellers and Buyer agree to be bound by the allocation set forth in Schedule 2.02
for  purposes  of  Article  8  hereof.

     2.03.  CLOSING.  The purchase and sale (the "Closing") provided for in this
            -------
Agreement  will  take  place  at  the  offices of Sellers' counsel, at 1:00 p.m.
(local  time) on or before JUNE 30, 2006, or at such other time and place as the
parties  may  agree.

     2.04.  CLOSING  OBLIGATIONS.  At  the  Closing:
           ---------------------

          (a)  Sellers  will  deliver,  or  cause  to  be  delivered,  to Buyer:

               (i)  the Instruments  of  Conveyance  executed  by  Sellers;

               (ii) possession  of  the  Assets;

               (iii) a certificate  executed  by  Sellers  representing  and
                    warranting  to  Buyer  that each of Sellers' representations
                    and warranties in this Agreement is accurate in all material
                    respects  as  of  the Closing Date as if made on the Closing
                    Date;

               (iv) such documents  as  Buyer  or  counsel  for  Buyer  may
                    reasonably  request,  including  but  not  limited  to
                    letters-in-lieu  of  transfer  order  to  purchasers  of
                    production  from  the  Wells,  and  releases of all recorded
                    Encumbrances  (other  than Permitted Encumbrances) affecting
                    the  Assets;  and

               (v)  the Post-Effective  Time  Credit,  as  defined  in  section
                    2.05(b),  by  delivery  of  a  cashier's check(s) payable to
                    Buyer.

                    BANK INFORMATION:
                    ABA BANK ROUTING #:     ********
                    ACCOUNT # :               ********

          (b)  Buyer will  deliver  to  Sellers:

                                        7
<PAGE>

               (i)  the Purchase  Price,  by  wire  transfer,  in  the following
                    amounts  which  are  net  of the $200,000 deposit heretofore
                    made  by  Buyer  to Sellers, to the following accounts Buyer
                    shall  have fully performed its payment obligations when the
                    Purchase  Price  arrives  in  the  designated  account,  and
                    Sellers  agree  to indemnify and hold Purchaser harmless for
                    damages  or any claims resulting from any failure thereafter
                    concerning  the  proper  disbursement of the Purchase Price;

ACCOUNT NAME:                    ACCOUNT NAME:           *************

BANK                             BANK                    ******************
INFORMATION:                     INFORMATION:

ABA BANK                         ABA BANK
ROUTING #:                       ROUTING #:

ACCOUNT # :                      ACCOUNT # :

AMOUNT:                          FOR FURTHER
                                 CREDIT TO:

                                 ACCOUNT  NAME:

                                 BANK
                                 INFORMATION:

                                 ABA  BANK
                                 ROUTING  #:

                                 ACCOUNT  #  :

                                 AMOUNT:

                    Payment  to  Investment  Property  Exchange  Services,  Inc.
                    is  made  at the request and for the benefit of Lara Energy,
                    Inc., 600 Building, Suite 1904, Corpus Christi, Texas 78473.

               (ii) the Instruments  of  Conveyance  executed  by  Buyer;

               (iii) a certificate  executed  by  Buyer  representing  and
                    warranting  to  Sellers that each of Buyer's representations
                    and warranties in this Agreement is accurate in all material
                    respects  as  of  the Closing Date as if made on the Closing
                    Date;  and

                                        8
<PAGE>

               (iv) such other  documents  as  Sellers  or  counsel  for Sellers
                    may  reasonably  request.

     2.05.  ALLOCATIONS  AND  ADJUSTMENTS.  If  Closing  occurs:
            -----------------------------

          (a)  Buyer  will  be  entitled  to all revenues, production, proceeds,
     income,  and  products  from or attributable to each Asset on and after the
     relevant  Effective  Time, and will be responsible for (and entitled to any
     refunds  with respect to) all Property Costs attributable to the Assets and
     incurred  on  and after the Effective Time. Sellers will be entitled to all
     revenues,  production,  proceeds, income, and products from or attributable
     to each Asset prior to the Effective Time, and will be responsible for (and
     entitled to any refunds with respect to) all Property Costs attributable to
     each  Asset  and  incurred  prior  to  the  Effective  Time and all Capital
     Expenditures.  "Property  Costs"  will mean all amounts attributable to the
     operation  and  ownership  of  the Assets incurred and paid in the Ordinary
     Course  of  Business  less and except Capital Expenditures. For purposes of
     allocating  production,  products,  accounts  receivable and proceeds under
     this  Section,  (i)  liquid  hydrocarbons  will  be  deemed  to be "from or
     attributable  to"  the Wells when they pass through the pipeline connecting
     into  the  storage  facilities  into  which  they  are run and (ii) gaseous
     hydrocarbons will be deemed to be "from or attributable to" Wells when they
     pass through the delivery point sales meters on the pipelines through which
     they  are  transported.  In order to accomplish the foregoing allocation of
     production  the  parties  will  rely  upon  gauging, metering and strapping
     procedures  conducted  by  Sellers  on  or  about the Effective Time to the
     extent  possible  and  unless  demonstrated  to  be inaccurate will utilize
     reasonable  interpolating  procedures  to  arrive  at  an  allocation  of
     production when exact gauging, metering and strapping data is not available
     on hand as of the Effective Time. Sellers will provide to Buyer evidence of
     all  gauging,  metering  and  strapping  procedures  conducted hereunder in
     connection  with the Wells, together with all data necessary to support any
     estimated  allocation,  for  purposes of establishing the adjustment to the
     Purchase  Price.  Ad  valorem  taxes  for  2005 will be prorated on a daily
     basis,  with  Buyer  liable  for the portion allocated to the period on and
     after  the  Effective  Time and Sellers liable for the portion allocated to
     the period before the Effective Time. If the amount of such taxes for part,
     or  all,  of  the Assets is not available on the Closing Date, proration of
     taxes  shall  be  made on the basis of taxes assessed in the previous year,
     with  a  subsequent  cash  adjustment  of such proration to be made between
     Sellers  and  Buyer,  when  actual  tax  figures  are  available.

          (b)  The  Post-Effective  Time  Credit  will  be, without duplication,
     determined  by  a  calculation  wherein

               (i)  the  following  amounts  are  subtracted:

                    (A)  the aggregate  amount  of  all  non-reimbursed
                         Property  Costs  which  are  attributable to the period
                         from  the  Effective Time to the Closing Date and which
                         are  incurred  and  paid by Sellers with respect to the
                         Wells  and  Subject  Leases;

                                        9
<PAGE>

                    (B)  an amount  equal  to  the  agreed  value  of  all
                         Hydrocarbons  in  storage above the pipeline connection
                         at the Effective Time that is credited to the Wells and
                         which stored Hydrocarbons have not been sold by Sellers
                         or  for  which  Sellers  have  not  been  paid;

                    (C)  the amount  of  any  upward  adjustment  pursuant  to
                         Section  8.04;

                    (D)  any other  upward  adjustment  mutually  agreed  upon
                         by  the  parties;

               (ii) the following  amounts  are  added:

                    (A)  the aggregate  amount  of  proceeds  received  by
                         Sellers from the sale of Hydrocarbons produced from and
                         attributable  to  the  Wells between the Effective Time
                         and  the  Closing  Date;

                    (B)  the amount  of  any  downward  adjustment  relating  to
                         Title  Defects  as  set  forth  in  Article  8;

                    (C)  the amount  of  any  adjustment  relating  to  an
                         uninsured  casualty  as  required  by  Section  8.09;

                    (D)  Sellers'  share  of  estimated  ad  valorem  taxes
                         through  the  Effective  Time;  and

                    (E)  the amount  of  any  downward  adjustment  mutually
                         agreed  upon  by  the  parties.

     The  net  product  of  this  calculation  is  herein  referred  to  as  the
"Post-Effective  Time  Credit."

          (c)  Subject  to  the  arbitration  provisions  of  Article 9.14 as to
     adjustments  under  Section  2.05(b)(ii)(b),  as  soon as practicable after
     Closing,  but  no  later  than ninety (90) days following the Closing Date,
     Sellers  will  prepare  and  submit  to  Buyer,  a  statement  (the  "Final
                                                                           -----
     Settlement  Statement")  setting forth each adjustment or payment which was
     ---------------------
     not  finally  determined as of the Closing Date and showing the values used
     to  determine such adjustments to reflect the final adjusted Purchase Price
     (the  "Final  Amount").  On or before thirty (30) days after receipt of the
            -------------
     Final  Settlement Statement, Buyer will deliver to Sellers a written report
     containing any changes which Buyer proposes be made to the Final Settlement
     Statement.  Sellers  and Buyer shall undertake to agree with respect to the
     amounts  due  pursuant  to  the  post-closing  adjustment no later than one
     hundred  fifty  (150)  days from the Closing Date. If Sellers and Buyer are
     unable  to agree within one hundred fifty (150) days after the Closing Date

                                       10
<PAGE>

     as to adjustment matters not subject to arbitration in accordance with this
     Agreement,  Sellers  will  select  an independent accounting firm in Corpus
     Christi,  Texas, from a list of three such firms provided by Buyer (none of
     which  will  be  the independent accounting firm regularly used by Buyer or
     Sellers),  which  firm  will  audit  the  Final  Settlement  Statement  and
     determine  the  Purchase  Price  adjustment or payment amount in accordance
     with  the terms and conditions set forth in this Agreement. The decision of
     such  independent accounting firm will be binding on Sellers and Buyer, and
     the  fees  and  expenses  of such independent accounting firm will be borne
     one-half  by  Sellers  and  one-half  by  Buyer.  The  date upon which such
     agreement  is  reached  or  upon  which  the  Purchase  Price  is otherwise
     established,  as  provided  in  the  preceding sentence, will be called the
     "Settlement  Date." In the event that (a) the Final Amount is more than the
      ----------------
     Purchase  Price  less  the  Post-Effective  Time  Credit, Buyer will pay to
     Sellers  the amount of the difference; or (b) the Final Amount is less than
     the Purchase Price less the Post-Effective Time Credit, Sellers will pay to
     Buyer  the  amount of the difference. Such payment will be made within five
     (5)  business  days  of  the  Settlement Date via wire transfer to accounts
     specified  by  Sellers  or  Buyer  as  appropriate.

     2.06.  ASSUMPTION.  If the Closing occurs, from and after the Closing Date,
            ----------
Buyer  will  assume,  pay,  and  discharge  the  following liabilities ("Assumed
                                                                         -------
Liabilities"):
-----------

     Any  and  all  duties,  claims,  damages, expenses, fines, penalties, costs
(including  attorneys'  fees  and  expenses),  liabilities,  and  obligations
(collectively  the  "Obligations") (i) arising from or relating to the ownership
or operation of the Assets from and after the Effective Time under any Contract,
Governmental  Authorization,  or  Subject  Lease  relating  to  the Assets, (ii)
imposed  by  any  Legal  Requirement relating to the Assets, (iii) for plugging,
abandonment, and surface restoration of the oil, gas, injection, water, or other
wells  located  on  the  lands covered by the Subject Leases, (iv) from any act,
omission,  event,  condition,  or  occurrence  subsequent  to the Effective Time
relating  to  the  Assets, and (v) attributable to all Environmental Liabilities
relating  to  the Assets; provided, however, the provisions of this Section 2.06
will  not relieve Sellers from liability resulting from a Breach, if any, of its
representations,  warranties  or  covenants  under  this  Agreement.

     2.07.  DELIVERY  OF  RECORDS.  Subject  to the terms and conditions of this
            ---------------------
Agreement, Sellers agree to, within five (5) working days of Closing, deliver to
Buyer,  all of the files, records, documents, correspondence and data now in the
possession or control of Sellers that relate to the Assets (the "Records"). This
will  include:

          (i)  Title opinions  and  title  status  reports  pertaining  to  the
               Assets;

          (ii) Copies  of  the  Subject  Leases,  prior  conveyances  of  the
               Assets,  unitization,  pooling and operating agreements, division
               and  transfer  orders,  mortgages,  deeds  of  trust,  security
               arrangements,  chattel  mortgages, financing statements and other
               encumbrances  not  discharged  and  affecting the title to or the
               value  of  the  Assets and all other information contained in the
               land  files  of  Sellers  and  relating  to  the  Assets;

                                       11
<PAGE>

          (iii) Records  relating  to  the  payment  of  rentals,  royalties and
               other  payments  due  under  the  Subject  Leases;

          (iv) Records  relating  to  the  payment  of  ad  valorem,  property,
               production,  severance,  excise and similar taxes and assessments
               based  on  or  measured  by  the  ownership  of  property  or the
               production  of  hydrocarbons or the receipt of proceeds therefrom
               on  the  Assets;

          (v)  Ownership  maps,  surveys,  logs  and  seismic  information
               relating  to  the  Assets;

          (vi) Copies  of  all  purchase,  sale,  processing  and transportation
               agreements  relating  to  the  Assets;

          (vii) Copies  of  all  agreements  including  the  leases,  permits,
               easements,  licenses  and  orders  relating  to  the  Assets;

          (viii) Production  and  operational  records  relating  to the Assets,
               including  filings  made  with  regulatory  agencies;

          (ix) Inventories  of  personal  property  and  fixtures  included  in
               the  Assets;

          (x)  Accounting  records,  and  engineering  and  technical  data, and
               geological  and  geophysical  data,  relating  to the Assets; and

          (xi) Digital  and  paper  copies  of  all  marketing materials used in
               the Tristone data room, including seismic and individual prospect
               montages.

     Notwithstanding the foregoing, Sellers shall not be under any obligation to
release  any  documentation or records that Sellers cannot without violating any
contractual  commitment  to  third parties provided, however, such documentation
shall  be  provided to the extent a waiver of any such contractual commitment is
obtained.  Buyer  shall  permit  Sellers,  at  Sellers'  expense, to inspect and
photocopy  such  information  and records at any reasonable time but only to the
extent,  in  each  case,  that Buyer may do so without violating any contractual
commitment  to  a  third  party.

     2.08.  SUSPENDED  FUNDS.  As soon as practicable after the Closing, Sellers
            ----------------
will  provide  to  Buyer  a  listing  showing  all  proceeds  from  production
attributable to the Leasehold Interests which are currently held in suspense and
shall  transfer to Buyer all of those suspended proceeds. Upon request by Buyer,
Sellers  shall  also provide Buyer with copies of documents and other historical
information  with respect to such proceeds. Upon receipt of such proceeds, Buyer
shall  be  responsible for proper distribution of all the suspended proceeds, to
the  extent  turned  over  to it by Sellers, to the parties lawfully entitled to
them,  and hereby agrees to indemnify, defend and hold harmless Sellers from and
against any and all claims, liabilities, losses, costs and expenses, arising out
of  or  relating  to those suspended proceeds to the extent turned over to it by

                                       12
<PAGE>

Sellers;  provided, however, that Sellers shall, for a period continuing through
and  until  the  second  anniversary  of  the  Closing, indemnify and hold Buyer
harmless  from  and  against  any and all claims, liabilities, losses, costs and
expenses associated with any claims against the suspended proceeds to the extent
such claim exceeds the proceeds transferred to Buyer in respect of such claimant
and  arises  solely  from  Sellers' actions or omissions prior to the date Buyer
receives  such  suspended  proceeds.

     2.09.  AGREEMENT  REGARDING  FUTURE  ACTIVITY.  For  a period of four years
            --------------------------------------
following  the  Closing,  Sellers, on behalf of themselves and their Affiliates,
agree not to acquire or attempt to acquire any interest in any oil and gas lease
that  is  located  in  whole  or in part within the boundaries of the outline on
Schedule  2.09  attached  hereto.

     2.10.  CONTRACT  RIGHTS  ASSIGNMENT. Subject to the terms and conditions of
            ----------------------------
this  Agreement,  Sellers hereby sell and convey to Buyer all of Sellers' rights
with  respect  to  any  written  agreement  or  contract that is legally binding
relating  to  the  Subject Leases or Wells, including without limitations, those
listed  on  Exhibit  B.

                                    ARTICLE 3

                    REPRESENTATIONS AND WARRANTIES OF SELLERS

     Each  Sellers,  severally  as  to  its respective interest and not jointly,
represents  and  warrants  to  Buyer  as  follows:

     3.01.  ORGANIZATION AND GOOD STANDING. J&P Family Properties, Ltd., a Texas
            ------------------------------
Limited Partnership, and Lara Energy, Inc., a Texas corporation, duly organized,
validly  existing,  and  in  good  standing  under  the  laws  of  its  state of
organization  and every state in which it is qualified to do business, with full
corporate  power  and  authority  to  conduct  its  business  as it is now being
conducted,  and  to own or use the properties and assets that it purports to own
or  use.  Sellers  are  not  a  "foreign person" for purposes of Section 1445 or
Section  7701  of  the  IRC.

     3.02.  AUTHORITY;  NO  CONFLICT.
            ------------------------

          (a)  This  Agreement  constitutes  the  legal,  valid,  and  binding
     obligation  of  Sellers, enforceable against Sellers in accordance with its
     terms.  Upon  the  execution  and delivery by Sellers of the Instruments of
     Conveyance and any other documents executed and delivered by Sellers at the
     Closing  (collectively, the "Sellers' Closing Documents"), Sellers' Closing
     Documents  will  constitute  the  legal,  valid, and binding obligations of
     Sellers,  enforceable  against  Sellers in accordance with their respective
     terms. Except as set forth in Part 3.02 of the Disclosure Schedule, Sellers
     have the absolute and unrestricted right, power, authority, and capacity to
     execute  and  deliver this Agreement and Sellers' Closing Documents, and to
     perform  its  obligations  under  this  Agreement  and  Sellers'  Closing
     Documents.

                                       13
<PAGE>

          (b)  Except  as  set  forth  in  Part 3.02 of the Disclosure Schedule,
     neither  the  execution and delivery of this Agreement nor the consummation
     or  performance  of  any of the Contemplated Transactions will, directly or
     indirectly  (with  or  without  notice  or  lapse  of  time):

               (i)  contravene,  conflict  with,  or  result  in  a violation of
                    (A)  any  provision  of  the  Organizational  Documents  of
                    Sellers,  or  (B)  any  resolution  adopted  by the board of
                    directors  or  the  stockholders  of  Sellers;

               (ii) contravene,  conflict  with,  or  result  in a violation of,
                    or  give  any Governmental Body or other Person the right to
                    challenge  any  of  the  Contemplated  Transactions  or  to
                    exercise any remedy or obtain any relief under, any contract
                    or  agreement  or  any  Legal  Requirement or Order to which
                    Sellers,  or  any  of  the  Assets,  may  be  subject;

               (iii) contravene,  conflict  with,  or  result  in a violation of
                    any  of  the  terms  or  requirements  of,  or  give  any
                    Governmental  Body  the  right to revoke, withdraw, suspend,
                    cancel, terminate, or modify, any Governmental Authorization
                    that  relates  to  the  Assets;

               (iv) contravene,  conflict  with,  or  result  in  a violation or
                    breach  of any provision of, or give any Person the right to
                    declare  a  default  or  exercise  any  remedy  under, or to
                    accelerate  the  maturity  or  performance of, or to cancel,
                    terminate,  or  modify,  any  Contract;  or

               (v)  result  in  the  imposition  or  creation of any Encumbrance
                    upon  or  with  respect  to  any  of  the  Assets.

          (c)  Except  as  set  forth  in  Part 3.02 of the Disclosure Schedule,
     Sellers  are  not  nor will be required to give any notice to or obtain any
     Consent  from  any  Person in connection with the execution and delivery of
     this  Agreement  or  the  consummation  or  performance  of  any  of  the
     Contemplated  Transactions.  If  any such consent is required, such consent
     shall  be  given  in writing not less than three (3) business days prior to
     Closing.

     3.03.  BANKRUPTCY.  There are no bankruptcy, reorganization, or arrangement
            ----------
proceedings  being  contemplated  by  Sellers  or  pending or Threatened against
Sellers.

     3.04.  TAXES. Sellers have filed or caused to be filed all Tax Returns that
            -----
it  has  been  or  was  required  to file, either separately or as a member of a
consolidated  group,  pursuant to applicable Legal Requirements. All Tax Returns
filed  by  (or  that include on a consolidated basis) Sellers are true, correct,
and complete. Sellers have paid all Taxes that have become due pursuant to those
Tax  Returns or otherwise, or pursuant to any assessment received by Sellers, to

                                       14
<PAGE>

the  extent not being contested in good faith. Sellers do not have any Knowledge
of  any Threatened Tax assessment against it except as disclosed in Part 3.05 of
the  Disclosure  Schedule.

     3.05.  LEGAL  PROCEEDINGS;  ORDERS.
            ---------------------------

          (a)  Except  as  set  forth  in  Part 3.05 of the Disclosure Schedule,
               there  is  no  pending  Proceeding:

               (i)  that relates  to  or  may  affect  any  of  the  Assets;  or

               (ii) that challenges,  or  that  may  have  the  effect  of
                    preventing,  delaying,  making  illegal,  or  otherwise
                    interfering  with,  any  of  the  Contemplated Transactions.

          (b)  Except  as  set  forth  in  Part 3.05 of the Disclosure Schedule,
               to Sellers' Knowledge (1) no Proceeding of the type referenced in
               Section  3.05  (a) has been Threatened, (2) no event has occurred
               nor does any circumstance exist that may give rise to or serve as
               a  basis  for the commencement of any such Proceeding, and (3) no
               basis  exists  for any claim by any employee of Sellers under any
               Legal  Requirement  for  which  Buyer  could  become  liable as a
               successor  or  otherwise.

          (c)  Except  as  set  forth  in  Part 3.05 of the Disclosure Schedule,
               there  is no Order relating to the use or ownership of the Assets
               to  which  Sellers,  or  any  of  the  Assets,  is  subject.

     3.06.  ENVIRONMENTAL.  To the Knowledge of Sellers, there are no Violations
            -------------
of Environmental Laws that arise from events occurring during the period Sellers
owned the affected Assets, which have not been corrected or remediated under the
requirements  of any Governmental Body having jurisdiction, and to the Knowledge
of  Sellers,  there  are  no  Environmental  Liabilities  that arise from events
occurring  prior  to  Sellers'  ownership  of  the  Assets.

     There  are  no environmental investigations, studies or audits with respect
to  any of the Assets owned or commissioned by, or in the possession of, Sellers
or  Affiliates  which  have  not  been  disclosed  in  writing  to  Buyer.

     Sellers have, at their own expense, covered every open pit related to their
operations  on the affected Assets and disposed of all associated drill cuttings
in  accordance  with  the  requirements  of  any  Governmental  Body  having
jurisdiction.

     3.07.  PERSONAL  PROPERTY.  To  the  extent  the Assets constitute personal
            ------------------
property  or  fixtures, Sellers EXPRESSLY DISCLAIM AND NEGATE (A) ANY IMPLIED OR
                                ------------------------------------------------
EXPRESS  WARRANTY  OF  MERCHANTABILITY,  (B)  ANY IMPLIED OR EXPRESS WARRANTY OF
--------------------------------------------------------------------------------
FITNESS  FOR  A  PARTICULAR  PURPOSE,  (C)  ANY  IMPLIED  OR EXPRESS WARRANTY OF
--------------------------------------------------------------------------------
CONFORMITY  TO MODELS OR SAMPLES OF MATERIALS, AND (D) ANY OTHER WARRANTY OF ANY
--------------------------------------------------------------------------------

                                       15
<PAGE>

NATURE,  EXPRESS  OR IMPLIED, EXCEPT AS EXPRESSLY PROVIDED HEREIN, AND ARE TO BE
--------------------------------------------------------------------------------
CONVEYED  "AS  IS"  AND  "WHERE  IS",  WITH  ALL  FAULTS.
--------------------------------------------------------

     3.08.  TITLE  TO  PROPERTIES.  On  the Closing Date, Sellers will convey to
            ---------------------
Buyer  Defensible  Title to the Assets. Sellers have delivered or made available
to  Buyer  all  items  in  their  possession  which  would  be  relevant  in the
determination  as to whether Sellers have the ability to convey Defensible Title
to the Assets. Notwithstanding any other provision herein, or in any Assignment,
Sellers specifically warrant title to the Assets by, through and under them, but
not  otherwise.

     3.09.  BROKERS.  Sellers  have  not  incurred  any obligation or liability,
            -------
contingent  or  otherwise,  for  broker's  or  finder's fees with respect to the
transactions contemplated by this Agreement other than obligations which are the
sole  responsibility  of  Sellers.

     3.10.  TAX  SHARING  AGREEMENTS. There are no tax sharing agreements or any
            ------------------------
other  contract  relating  to  the  sharing  or  payment  of  any  Tax.

     3.11.  CONSENTS.  Part  3.11  of  the  Disclosure  Schedule  sets forth all
            --------
consents  and  approvals  which  are  required  in  order  to  consummate  the
transactions  contemplated  hereunder.

     3.12.  GAS  IMBALANCES,  PREPAYMENT ARRANGEMENTS; TAKE-OR-PAY. There are no
            ------------------------------------------------------
gas  imbalances  between  Sellers and any third party working interest owners or
gatherers  or transporters relative to the Assets, and Sellers are not obligated
by  any  gas  prepayment arrangement or by any take-or-pay requirement or by any
other  financial  penalty  or  payback obligation to deliver any gas at a future
time  without  then  or  thereafter  receiving  payment  therefore.

     3.13.  STATUS OF LEASES. With respect to the oil, gas and/or mineral leases
            ----------------
comprising  part  of the Assets (i) to Sellers' Knowledge, such leases have been
maintained  according to their terms, in compliance with the agreements to which
such  leases  are  subject; (ii) to Sellers' Knowledge all royalties (other than
royalties  held  in  suspense),  delay rentals and other payments due under such
leases  have  been properly and timely paid and all conditions necessary to keep
such  leases  in  force  have been fully performed; (iii) to Sellers' Knowledge,
except  as  shown on the Exhibits hereto, and without expanding or enlarging any
warranty of title given elsewhere herein, such leases are presently in force and
effect;  and (iv) neither Sellers nor, to Sellers' Knowledge, any other party to
any  such lease has received notice of any claim or action seeking to terminate,
cancel,  rescind  or  procure  a  judicial  reformation of any such lease or any
provisions thereof or seeking the release of any such lease (or portion thereof)
comprising  any  part  of  the  Assets.

     3.14.  CONTRACTS.  Exhibit  B  contains  a  complete  list  of the material
            ---------
Contracts  comprising a part of the Assets. Sellers have made available to Buyer
complete  and correct copies of all Contracts listed on Exhibit B. Except as set
forth  on  Parts 3.02 and 3.14 of the Disclosure Schedule, Sellers have received
no  written  notice  of  any  threatened  cancellation  of  any Contract nor any
outstanding  disputes  thereunder,  and,  assuming  all  required  consents  are
received,  Sellers have not and will not have breached any provision of, nor, to
Sellers'  Knowledge,  does  there exist any default under, or event, that is, or
with  the  giving of notice or the passage of time or both would become a breach
or  default  in respect under the terms of any Contract. The Contracts have been

                                       16
<PAGE>

duly  executed  by  Sellers,  constitute  valid  and  enforceable obligations of
Sellers,  and are freely assignable without the consent of third parties. Except
as  set forth on Part 3.14 of the Disclosure Schedule, there are no gas purchase
Contracts  which  may not be canceled by Sellers upon ninety (90) days notice to
the  other  party.

                                    ARTICLE 4

                     REPRESENTATIONS AND WARRANTIES OF BUYER

     Buyer  represents  and  warrants  to  Sellers  as  follows:

     4.01.  ORGANIZATION  AND  GOOD  STANDING.  Buyer is duly organized, validly
            ---------------------------------
existing,  and  in  good standing under the laws of the State of Delaware and in
each  jurisdiction  in  which  it  conducts  business,  including  Texas.

     4.02.  AUTHORITY;  NO  CONFLICT.
            -------------------------

          (a)  This Agreement  constitutes  the  legal,  valid,  and  binding
               obligation of Buyer, enforceable against Buyer in accordance with
               its  terms.  Upon  the  execution  and  delivery  by Buyer of the
               Instruments  of  Conveyance  and any other documents executed and
               delivered  by  Buyer  at  the Closing (collectively, the "Buyer's
               Closing  Documents"),  the  Buyer's  Closing  Documents  will
               constitute  the  legal,  valid,  and binding obligations of Buyer
               enforceable  against  Buyer  in  accordance with their respective
               terms.  Buyer has the absolute and unrestricted right, power, and
               authority  to  execute and deliver this Agreement and the Buyer's
               Closing  Documents,  and  to  perform  its obligations under this
               Agreement  and  the  Buyer's  Closing  Documents.

          (b)  Except  as  disclosed  to  Buyer  on  Part 3.02 on the Disclosure
               Schedule, neither the execution and delivery of this Agreement by
               Buyer  nor  the  consummation  or  performance  of  any  of  the
               Contemplated Transactions by Buyer will give any Person the right
               to  prevent,  delay,  or  otherwise  interfere  with  any  of the
               Contemplated  Transactions.

          (c)  Except  as  disclosed  to  Buyer  on  Part 3.02 on the Disclosure
               Schedule,  Buyer  is  not  and  will  not be required to give any
               notice  to  or  obtain  any Consent from any Person in connection
               with  the  execution  and  delivery  of  this  Agreement  or  the
               consummation  or  performance  of  any  of  the  Contemplated
               Transactions.

                                       17
<PAGE>

     4.03.  CERTAIN  PROCEEDINGS.  There  is no pending Proceeding that has been
            --------------------
commenced  against  Buyer  and  that  challenges,  or  may  have  the  effect of
preventing,  delaying, making illegal, or otherwise interfering with, any of the
Contemplated  Transactions.  To  Buyer's  Knowledge, no such Proceeding has been
Threatened.

     4.04.  KNOWLEDGEABLE  INVESTOR.  Buyer  is an experienced and knowledgeable
            -----------------------
investor  in  the  oil  and gas business. Prior to entering into this Agreement,
Buyer  was  advised  by  its  own  legal,  tax,  and  other professional counsel
concerning  this  Agreement, the Contemplated Transactions, the Assets and their
value,  and it has relied solely thereon and the representations and obligations
of  Sellers  in  this  Agreement  and the documents to be executed by Sellers in
connection with this Agreement at Closing. Buyer is acquiring the Assets for its
own  account  and  not  for  distribution.

     4.05.  SECURITIES  LAWS.  The  solicitation  of  offers and the sale of the
            ----------------
Assets  by  Sellers  have  not  been registered under any securities laws. Buyer
represents that at no time has it been presented with or solicited by or through
any  public  promotion  or  any  form  of  advertising  in  connection with this
transaction.  Buyer represents that it intends to acquire the Assets for its own
benefit  and  account and that it is not acquiring the Assets with the intent of
distributing fractional, undivided interests that would be subject to regulation
by  federal  or  state  securities  laws,  and  that  if it sells, transfers, or
otherwise  disposes  of  the Assets or fractional undivided interest therein, it
will  do  so  in  compliance  with applicable federal and state securities laws.

     4.06.  DUE  DILIGENCE  Buyer  represents  that  it  has  performed, or will
            --------------
perform, before closing, sufficient review and due diligence with respect to the
Assets,  which  includes  reviewing  well  data  and  other  files in performing
necessary  evaluations,  assessments, and other tasks involved in evaluating the
Assets  to  satisfy  its  requirements  completely  and  to enable it to make an
informed  decision  to  acquire  the  Assets  under the terms of this Agreement.

     4.07.  BASIS  OF  BUYER'S DECISION.  Buyer represents that by reason of its
            ---------------------------
knowledge and experience in the evaluation, acquisition and operation of oil and
gas  properties,  Buyer has evaluated the merits and the risks of purchasing the
Assets  from Sellers and has formed an opinion based solely on Buyer's knowledge
and  experience  and  not on any representations or warranties by Sellers. Buyer
represents that it has not relied and will not rely on any statements by Sellers
or  their representatives in making its decision to enter into this Agreement or
to  close  this  transaction.

     4.08.  MATERIAL  FACTOR.    Buyer acknowledges that Buyer's representations
            ----------------
under  this  Article  are  a  material  inducement to Sellers to enter into this
Agreement  with,  and  close  the  Contemplated  Transactions  with  Buyer.

                                       18
<PAGE>

                                    ARTICLE 5

                              COVENANTS OF SELLERS

     5.01. ACCESS AND INVESTIGATION. Prior to the Closing Date, Sellers have (a)
           ------------------------
afforded  Buyer  and  its  Representatives  (collectively,  "Buyer's  Advisors")
reasonable  access  to  Sellers'  personnel,  properties,  contracts,  books and
records,  and other documents and data, (b) furnished Buyer and Buyer's Advisors
with  copies  of  all  such  contracts,  books  and  records, and other existing
documents  and data as Buyer may reasonably request, and (c) furnished Buyer and
Buyer's  Advisors  with such additional financial, operating, and other data and
information  as Buyer may reasonably request; PROVIDED THAT, EXCEPT AS EXPRESSLY
                                              ----------------------------------
PROVIDED  HEREIN,  SELLERS  MAKE  NO  WARRANTY,  AND  EXPRESSLY  DISCLAIMS  ALL
--------------------------------------------------------------------------------
WARRANTIES  AS  TO  THE  ACCURACY OR COMPLETENESS OF THE DOCUMENTS, INFORMATION,
--------------------------------------------------------------------------------
BOOKS,  RECORDS,  FILES  AND  OTHER PERTINENT DATA THAT IT MAY PROVIDE TO BUYER.
--------------------------------------------------------------------------------

     5.02. OPERATION OF THE ASSETS. Sellers have, for the last thirty (30) days,
           -----------------------
conducted  the  business  relating  to the Assets only in the Ordinary Course of
Business.  By  way  of  example,  and  not  as a limitation, during such period,
Sellers  have  used  commercially  reasonable  efforts  to:

          (a)  maintain  the  Assets  and  operate  the  Assets  or  cause  the
               Assets  to  be  operated  in  the  Ordinary  Course  of Business;

          (b)  except  for  those  leases  listed  on  Schedule  5.02,  pay  or
               cause  to  be paid all bonuses and rentals, royalties, overriding
               royalties,  shut-in  royalties,  and  minimum  royalties  and
               development  and  operating  expenses,  current  taxes  and other
               payments  incurred  with  respect  to the Assets except royalties
               held in suspense as a result of title issues and that do not give
               any  third  party  a  right to cancel an interest in an Asset and
               except  for  expenses being contested in good faith and for which
               adequate  reserves  have  been  provided;

          (c)  maintain  the  personal  property  comprising  part of the Assets
               in  at  least  as  good  a condition as it is on the date hereof,
               subject  to  ordinary  wear  and  tear;  and,

          (d)  safeguard  and  maintain  confidential  all  records  of  a
               nonpublic  nature  (including  without  limitation geological and
               geophysical  data  and  maps  and  interpretations  thereof) that
               relate  to  the  Assets.

          Similarly,  during  the  last  thirty  (30)  days,  Sellers  have not,
          except  in  the  Ordinary  Course  of  Business:

          (a)  taken any  action  that  would  cause  its  representations  or
               warranties  to  be  materially  incorrect as of the Closing Date;

                                       19
<PAGE>

          (b)  abandoned  any  Asset  (except  the  abandonment  of  producing
               leases  not  capable  of producing in paying quantities after the
               expiration  of  their primary terms and having secured consent to
               such  abandonment  from  Buyer);

          (c)  commenced,  proposed,  or  agreed  to  participate  in any single
               operation  with  respect  to  the Wells or Subject Leases with an
               anticipated  cost  in  excess of $25,000 without notice to Buyer,
               except  for  emergency  operations;

          (d)  elected  to  participate  in  any  single operation proposed by a
               third  party  with respect to the Wells or Subject Leases with an
               anticipated  cost  in  excess of $25,000 without notice to Buyer,
               except  for  emergency  operations;

          (e)  terminated  or  materially  amended  or  modified  any  Contract
               set  forth  on  the  Disclosure  Schedule;

          (f)  waived  any  right  of  material  value  under  any  Contract set
               forth  on  the  Exhibit  B  or  relating  to  the  Wells;

          (g)  except  for  those  leases  listed  on  Schedule  5.02,  sold,
               leased, encumbered or otherwise disposed of all or any portion of
               any Assets except sales of Hydrocarbons in the Ordinary Course of
               Business;  or

          (h)  entered  into  any  new  production  sales, processing, gathering
               or  transportation  agreement  with  respect  to  the  Wells  not
               terminable  at  will  without  penalty  by Buyer after Closing on
               thirty  (30)  days  notice  or  less.

     5.03.  INSURANCE. Sellers have maintained in force until the Closing all of
            ---------
Sellers'  general  liability,  workers  compensation,  auto  liability  and well
control  insurance policies covering the Assets (provided that the costs of such
insurance  will  constitute  Property  Costs.)

     5.04.  CONSENT  AND  WAIVERS.  Sellers  have  used  commercially reasonable
            ---------------------
efforts  to  obtain  prior  to  Closing  waivers  of  all preferential rights to
purchase  and  all waivers and Consents necessary for the transfer of the Assets
to  Buyer.  If  all waivers and Consents have not been received prior to Closing
Date,  Sellers  will  use commercially reasonable efforts to obtain said waivers
and  Consents  after  the  Closing  Date; provided that in the event Sellers are
unable  to  obtain  all  such  waivers  and Consents after using such reasonable
efforts, such failure to satisfy will not constitute a Breach of this Agreement.

     5.05.  EXTRAORDINARY  EVENTS.  To  Sellers'  knowledge,  no  Extraordinary
            ---------------------
Operational  Event  has  occurred  from  the  Effective  Date until the Closing.
Extraordinary  Operational  Event refers to any operation or event in connection
with  the  Assets,  other  than  day  to  day  ordinary  operations,  that could
reasonably  result  in  claims  by  any  persons  that  would  exceed  $25,000.

                                       20
<PAGE>

     5.06.  MATERIAL  FACTOR.  Sellers acknowledge that Sellers' representations
            ----------------
under  this  Article  are  a  material  inducement  to  Buyer to enter into this
Agreement  and  close  the  Contemplated  Transactions  with  Sellers.

                                    ARTICLE 6

                               COVENANTS OF BUYER

     6.01.  NOTIFICATION. Prior to the Closing Date, Buyer has promptly notified
            ------------
Sellers in writing of any such fact or condition that requires any change in the
Disclosure  Schedule.

                                    ARTICLE 7

                            INDEMNIFICATION; REMEDIES

     7.01.  SURVIVAL.  Subject to Section 7.04, all representations, warranties,
            --------
covenants,  and  obligations  in  this  Agreement,  the Disclosure Schedule, the
certificates  delivered  pursuant  to Section 2.04, and any other certificate or
document  delivered  pursuant to this Agreement will survive the Closing, except
to  the  extent  of  any  written  waiver  signed  by  the  waiving  party.

     7.02.  INDEMNIFICATION AND PAYMENT OF DAMAGES BY SELLERS; JOINT AND SEVERAL
            --------------------------------------------------------------------
LIABILITY  OF  MR.  JOHN  E. HEARN, JR. AND MR. JIM WHEELER. Except as otherwise
-----------------------------------------------------------
limited in this Article 7, each Seller, severally as its interest may appear and
not  jointly,  will  indemnify  and  hold  harmless  Buyer  and  its  respective
Representatives,  stockholders,  controlling  persons,  directors, officers, and
affiliates  (collectively, the "Buyer Indemnified Persons") for, and will pay to
the  Buyer  Indemnified  Persons  the  amount of, any loss, liability, claim, or
damage,  whether or not involving a third-party claim (collectively, "Damages"),
arising  from:

          (a)  any Breach  of  any  representation  or  warranty made by Sellers
               in  this  Agreement,  or  in  any  certificate  delivered by such
               Sellers  pursuant  to  this  Agreement;

          (b)  any Breach  by  Sellers  of  any  covenant  or  obligation  of
               Sellers  in  this  Agreement;

          (c)  any claim  by  any  Person  for  brokerage  or  finder's  fees or
               commissions  or  similar  payments  based  upon  any agreement or
               understanding  alleged  to have been made by any such Person with
               Sellers  (or  any Person acting on its behalf) in connection with
               any  of  the  Contemplated  Transactions;  or

          (d)  if Closing  occurs,  the  use,  ownership  or  operation  of  the
               Assets  by  Sellers  prior  to  the Effective Time, except to the
               extent  assumed  by  Buyer  as  Assumed  Liabilities.

                                       21
<PAGE>

     This Agreement is also being executed by Mr. John E. Hearn, Jr. and Mr. Jim
Wheeler. By his execution of this Agreement, Mr. Hearn assumes joint and several
responsibility  for  the  indemnity  obligations  of Lara Energy, Inc. stated in
paragraph  7.02.  By  his execution of this Agreement, Mr. Wheeler assumes joint
and  several  responsibility  for  the  indemnity  obligations  of  J & P Family
Properties,  Ltd.  stated  in  paragraph  7.02.

     Except  for  Buyer's  termination rights under Article 8 of this Agreement,
the remedies provided in this Article 7 (if Closing occurs) and Section 2.02 (if
Closing  does  not  occur)  are Buyer's and Buyer Indemnified Persons' exclusive
remedies  for  Sellers'  Breaches.

     7.03.  INDEMNIFICATION AND PAYMENT OF DAMAGES BY BUYER. Except as otherwise
            -----------------------------------------------
limited  in  this Article 10, Buyer will indemnify and hold harmless Sellers and
their  Representatives,  stockholders, controlling persons, directors, officers,
and  affiliates  (collectively, the "Sellers Indemnified Persons"), and will pay
to  Sellers  Indemnified  Persons  the  amount  of  any  Damages  arising  from:

          (a)  any Breach  of  any  representation  or  warranty  made  by Buyer
               in  this  Agreement  or  in  any  certificate  delivered by Buyer
               pursuant  to  this  Agreement;

          (b)  any Breach  by  Buyer  of  any  covenant  or  obligation of Buyer
               in  this  Agreement;

          (c)  ANY LOSS,  LIABILITY,  CLAIM,  DAMAGE  OR  SUIT  WHICH  ANY  OF
               -----------------------------------------------------------------
               BUYER'S EMPLOYEES OR AGENTS OR THEIR HEIRS, EXECUTORS, OR ASSIGNS
               -----------------------------------------------------------------
               MAY  ASSERT  AGAINST  SELLERS,  BASED  UPON  INJURY  TO  PERSON,
               -----------------------------------------------------------------
               INCLUDING  DEATH OR TO PROPERTY, ARISING IN ANY MANNER WHATSOEVER
               -----------------------------------------------------------------
               FROM  ANY  INSPECTIONS  OF  SELLERS'  PROPERTY  PRIOR TO CLOSING,
               -----------------------------------------------------------------
               WHETHER  OR NOT BASED UPON STRICT LIABILITY OR CAUSED BY THE SOLE
               -----------------------------------------------------------------
               OR  CONCURRENT NEGLIGENCE (WHETHER ACTIVE OR PASSIVE) OF SELLERS,
               -----------------------------------------------------------------
               OR ANY PERSON OR ENTITY, UNLESS SUCH INJURY WAS OCCASIONED SOLELY
               -----------------------------------------------------------------
               BY  THE  GROSS  NEGLIGENCE  OR INTENTIONAL TORT OF SELLERS OR ANY
               -----------------------------------------------------------------
               OFFICER,  DIRECTOR,  OR  EMPLOYEE OR AGENT THEREOF; PROVIDED THAT
               -----------------------------------------------------------------
               SELLERS  AGREE  TO INDEMNIFY, RELEASE AND HOLD BUYER HARMLESS FOR
               -----------------------------------------------------------------
               ANY  DAMAGE  TO  THE  FACILITIES AND/OR EQUIPMENT OF SELLERS THAT
               -----------------------------------------------------------------
               OCCUR  DURING  SUCH INSPECTION SO LONG AS SUCH INSPECTION IS MADE
               -----------------------------------------------------------------
               UNDER  THE SUPERVISION OF A SELLERS' EMPLOYEE OR AGENT PHYSICALLY
               -----------------------------------------------------------------
               AT  THE  LOCATION  WHEN  AND  WHERE  THE  DAMAGE  OCCURS;
               ---------------------------------------------------------

          (d)  if Closing  occurs,  the  use,  ownership,  or  operation  of the
               Assets  after  the  Effective  Time;

          (e)  if Closing  occurs,  the  Assumed  Liabilities.

                                       22
<PAGE>

     Except  for  Sellers' termination rights under Article 8 of this Agreement,
the remedies provided in this Article 7 (if Closing occurs) and Section 2.02 (if
Closing does not occur) are Sellers' and Sellers' Indemnified Persons' exclusive
remedies  for  Buyer's  Breaches.

     7.04. TIME LIMITATIONS. Sellers will have no liability (for indemnification
           ----------------
or  otherwise)  with  respect  to any representation or warranty, or covenant or
obligation  to  be performed and complied with prior to the Closing Date, unless
on  or  before  one  (1) year from the Closing Date, Buyer notifies Sellers of a
claim  specifying  the  factual  basis of that claim in reasonable detail to the
extent  then  known  by  Buyer.

     7.05.  LIMITATIONS  ON AMOUNT--SELLERS. If the Closing occurs, Sellers will
            -------------------------------
have  no liability under Section 7.02 until the total of all Damages indemnified
thereunder  exceeds  $100,000,  and  then  Sellers will be liable for the entire
amount  of  such  Damages.

     7.06.  LIMITATIONS ON AMOUNT--BUYER. If the Closing occurs, Buyer will have
            ----------------------------
no  liability  under  Section  7.03  until  the total of all Damages indemnified
thereunder exceeds $100,000, and then Buyer will be liable for the entire amount
of  such  Damages.

     7.07.  PROCEDURE  FOR  INDEMNIFICATION--THIRD  PARTY  CLAIMS.
            -----------------------------------------------------

          (a)  Promptly  after  receipt  by  an  indemnified party under Section
               7.02 or 7.03 of a claim for Damages or notice of the commencement
               of  any  Proceeding against it, such indemnified party will, if a
               claim  is  to  be  made  against an indemnifying party under such
               Section,  give  notice  to  the  indemnifying  party  of  the
               commencement  of  such  claim.

          (b)  If any  Proceeding  referred  to  in  Section  7.07(a) is brought
               against  an  indemnified  party  and  it  gives  notice  to  the
               indemnifying  party  of  the commencement of such Proceeding, the
               indemnifying  party  will  be  entitled  to  participate  in such
               Proceeding  and,  to  the  extent  that it wishes (unless (i) the
               indemnifying  party  is  also  a party to such Proceeding and the
               indemnified  party  determines  in  good  faith  that  joint
               representation  would  be inappropriate, or (ii) the indemnifying
               party  fails  to  provide reasonable assurance to the indemnified
               party  of  its  financial  capacity to defend such Proceeding and
               provide  indemnification  with  respect  to  such Proceeding), to
               assume  the  defense of such Proceeding with counsel satisfactory
               to  the indemnified party and, after notice from the indemnifying
               party  to  the  indemnified  party  of its election to assume the
               defense  of  such Proceeding, the indemnifying party will not, as
               long  as  it  diligently  conducts such defense, be liable to the
               indemnified  party  under  this  Article  7 for any fees of other

                                       23
<PAGE>

               counsel or any other expenses with respect to the defense of such
               Proceeding, in each case subsequently incurred by the indemnified
               party  in  connection with the defense of such Proceeding. If the
               indemnifying  party  assumes  the  defense  of  a  Proceeding, no
               compromise  or  settlement  of such claims may be effected by the
               indemnifying party without the indemnified party's consent unless
               (A)  there  is  no finding or admission of any violation of Legal
               Requirements  or any violation of the rights of any Person and no
               effect  on  any  other  claims  that  may  be  made  against  the
               indemnified  party,  and (B) the sole relief provided is monetary
               damages  that are paid in full by the indemnifying party; and (C)
               the  indemnified party will have no liability with respect to any
               compromise  or  settlement  of  such  claims effected without its
               consent.

          (c)  Notwithstanding  the  foregoing,  if  an  indemnified  party
               determines  in  good faith that there is a reasonable probability
               that a Proceeding may adversely affect it or its affiliates other
               than  as  a  result  of  monetary  damages  for which it would be
               entitled to indemnification under this Agreement, the indemnified
               party  may,  by  notice  to  the  indemnifying  party, assume the
               exclusive right to defend, compromise, or settle such Proceeding,
               but the indemnifying party will not be bound by any determination
               of  a  Proceeding  so  defended  or  any compromise or settlement
               effected  without  its  consent  (which  may  not be unreasonably
               withheld).

     7.08.  PROCEDURE  FOR  INDEMNIFICATION--OTHER  CLAIMS.  A  claim  for
            ----------------------------------------------
indemnification for any matter not involving a third-party claim may be asserted
by  notice  to  the  party  from  whom  indemnification  is  sought.

     7.09.  EXTENT  OF  REPRESENTATIONS  AND  WARRANTIES.
            --------------------------------------------

          (a)  EXCEPT  AS  AND  TO  THE  EXTENT  EXPRESSLY  SET  FORTH  IN  THIS
               -----------------------------------------------------------------
               AGREEMENT,  SELLERS  MAKE  NO  REPRESENTATIONS  OR  WARRANTIES
               -----------------------------------------------------------------
               WHATSOEVER, AND DISCLAIM ALL LIABILITY AND RESPONSIBILITY FOR ANY
               -----------------------------------------------------------------
               REPRESENTATION,  WARRANTY,  STATEMENT  OR  INFORMATION  MADE  OR
               -----------------------------------------------------------------
               COMMUNICATED  (ORALLY  OR  IN  WRITING)  TO  BUYER (INCLUDING ANY
               -----------------------------------------------------------------
               OPINION,  INFORMATION  OR  ADVICE WHICH MAY HAVE BEEN PROVIDED TO
               -----------------------------------------------------------------
               BUYER  BY ANY AFFILIATE, OFFICER, DIRECTOR, STOCKHOLDER, PARTNER,
               -----------------------------------------------------------------
               EMPLOYEE,  AGENT,  CONSULTANT  OR REPRESENTATIVE OF SELLERS OR BY
               -----------------------------------------------------------------
               ANY  INVESTMENT  BANK  OR  INVESTMENT BANKING FIRM, ANY PETROLEUM
               -----------------------------------------------------------------
               ENGINEER  OR  ENGINEERING  FIRM,  SELLERS'  COUNSEL  OR ANY OTHER
               -----------------------------------------------------------------
               AGENT,  CONSULTANT  OR  REPRESENTATIVE).  WITHOUT  LIMITING  THE
               -----------------------------------------------------------------
               GENERALITY  OF  THE  FOREGOING,  EXCEPT  AS  AND  TO  THE  EXTENT
               -----------------------------------------------------------------
               EXPRESSLY SET FORTH IN THIS AGREEMENT, SELLERS EXPRESSLY DISCLAIM
               -----------------------------------------------------------------
               AND  NEGATE  ANY REPRESENTATION OR WARRANTY, EXPRESS, IMPLIED, AT
               -----------------------------------------------------------------
               COMMON LAW, BY STATUTE, OR OTHERWISE RELATING TO (A) THE TITLE TO
               -----------------------------------------------------------------

                                       24
<PAGE>

               ANY  OF THE ASSETS EXCEPT THAT SELLERS EXPRESSLY WARRANT THAT THE
               -----------------------------------------------------------------
               SUBJECT  LEASES  ARE  FREE  AND  CLEAR  OF  ALL  LIENS,  SECURITY
               -----------------------------------------------------------------
               INTERESTS,  ENCUMBRANCES  OR  DEFECTS  IN TITLE, EXCEPT PERMITTED
               -----------------------------------------------------------------
               ENCUMBRANCES,  (B) THE CONDITION OF THE ASSETS (INCLUDING WITHOUT
               -----------------------------------------------------------------
               LIMITATION,  ANY  IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY,
               -----------------------------------------------------------------
               OF  FITNESS  FOR A PARTICULAR PURPOSE, OR OF CONFORMITY TO MODELS
               -----------------------------------------------------------------
               OR  SAMPLES  OF  MATERIALS),  IT  BEING DISTINCTLY UNDERSTOOD THE
               -----------------------------------------------------------------
               ASSETS ARE BEING SOLD "AS IS", "WHERE IS" AND "WITH ALL FAULTS AS
               -----------------------------------------------------------------
               TO ALL MATTERS", (C) ANY INFRINGEMENT BY SELLERS OF ANY PATENT OR
               -----------------------------------------------------------------
               PROPRIETARY RIGHT OF ANY THIRD PARTY (D) ANY INFORMATION, DATA OR
               -----------------------------------------------------------------
               OTHER  MATERIALS  (WRITTEN  OR  ORAL) FURNISHED TO BUYER BY OR ON
               -----------------------------------------------------------------
               BEHALF  OF  SELLERS  (INCLUDING WITHOUT LIMITATION, IN RESPECT OF
               -----------------------------------------------------------------
               GEOLOGICAL  AND ENGINEERING DATA, THE EXISTENCE OR EXTENT OF OIL,
               -----------------------------------------------------------------
               GAS OR THE MINERAL RESERVES, THE RECOVERABILITY OF SUCH RESERVES,
               -----------------------------------------------------------------
               ANY  PRODUCT  PRICING ASSUMPTIONS, AND THE ABILITY TO SELL OIL OR
               -----------------------------------------------------------------
               GAS  PRODUCTION  AFTER  CLOSING),  AND  (E)  THE  ENVIRONMENTAL
               -----------------------------------------------------------------
               CONDITION  AND  OTHER  CONDITION  OF THE ASSETS AND ANY POTENTIAL
                ----------------------------------------------------------------
               LIABILITY  ARISING  FROM  OR  RELATED  TO  THE  ASSETS.
               -------------------------------------------------------

          (b)  Buyer acknowledges  and  affirms  that  it  has  had  full access
               to  information  with  respect  to the Assets, and that Buyer has
               made  its  own independent investigation, analysis and evaluation
               of  the Contemplated Transactions (including Buyer's own estimate
               and  appraisal  of  the  extent and value of Sellers' Hydrocarbon
               reserves attributable to the Assets and an independent assessment
               and  appraisal  of  the  environmental  risks associated with the
               acquisition of the Assets). Buyer hereby irrevocably covenants to
               refrain  from,  directly  or  indirectly, asserting any claim, or
               commencing,  instituting  or  causing  to  be  commenced,  any
               Proceeding  of  any kind against a Sellers, or Affiliate thereof,
               alleging  facts  contrary  to  the  foregoing acknowledgement and
               affirmation.

     7.10.  COMPLIANCE  WITH EXPRESS NEGLIGENCE TEST. THE PARTIES AGREE THAT THE
            --------------------------------------------------------------------
OBLIGATIONS OF THE INDEMNIFYING PARTY TO INDEMNIFY THE INDEMNIFIED PARTY WILL BE
--------------------------------------------------------------------------------
WITHOUT  REGARD  TO THE NEGLIGENCE OR STRICT LIABILITY OF THE INDEMNIFIED PARTY,
--------------------------------------------------------------------------------
WHETHER THE NEGLIGENCE OR STRICT LIABILITY IS ACTIVE, PASSIVE, JOINT, CONCURRENT
--------------------------------------------------------------------------------
OR  SOLE. The foregoing is a specifically bargained for allocation of risk among
--------
the  parties,  which  the  parties  agree  and acknowledge satisfies the express
negligence  rule  and  conspicuousness  requirement  under  Texas  law.

     7.11.  LIMITATIONS  OF LIABILITY. In no event will Sellers or Buyer ever be
            -------------------------
liable  to  the  other  for  any  consequential, special, indirect, exemplary or
punitive  damages relating to or arising out of the Contemplated Transactions or
the  Assets,  except  as  expressly  provided  in  this  Article.

                                       25
<PAGE>

                                    ARTICLE 8

                     TITLE MATTERS AND ENVIRONMENTAL MATTERS

     8.01.  TITLE  EXAMINATION AND ACCESS. Buyer may make or cause to be made at
            -----------------------------
its  expense  such  examination  as it may desire of the title of Sellers to the
Assets.  For such purposes, Sellers will (a) give to Buyer and to the employees,
consultants, independent contractors, attorneys and other advisers of Buyer full
access  at  any  reasonable  time  to  all  of  the  files,  records, contracts,
correspondence,  computer  output  and  data  files, maps, data, reports, plats,
abstracts  of  title, lease files, well files, unit files, division order files,
production marketing files, title opinions, title files and title records, title
insurance  policies,  ownership  maps,  surveys and any other information, data,
records and files which Sellers may have (or have access to) relating in any way
to  the  title  to  the  Assets,  the  past or present operation thereof and the
marketing of production therefrom; (b) furnish to Buyer all other information in
the  possession  of  or  available  to  Sellers with respect to the title to the
Assets  as  Buyer may from time to time reasonably request, except to the extent
that  (i) Sellers are prohibited therefrom by any agreement or contract to which
they  are  a  party  or  of  which  they  are  a  beneficiary, and (ii) the same
constitute  interpretations  made  by  Sellers  which  they deem confidential or
proprietary  and  which  relate  to  other  properties owned by Sellers; and (c)
authorize  Buyer  and  its  representatives  to consult with attorneys, abstract
companies  and  other consultants or independent contractors of Sellers, whether
utilized in the past or presently, concerning title-related matters with respect
to  the  Assets. Sellers will advise Buyer of any restrictions or constraints on
the  right  of Sellers to provide and disclose to Buyer all data and information
herein  provided,  and  Buyer will have the right and power to attempt to remove
such  restrictions  and  constraints.

     8.02.  DEFENSIBLE  TITLE.  On  the Closing Date, each Seller will convey to
            -----------------
Buyer  Defensible  Title to such Sellers' interest in the Assets. As used herein
the  term  "Defensible  Title"  will  mean,  as to such Sellers' interest in the
Assets,  that  title  which:

     Entitles Seller, as to the Wells described on EXHIBIT A to receive not less
than  the  interests  set  forth  in such Exhibit as the respective "Net Revenue
Interests",  of all Hydrocarbons produced, saved and marketed therefrom, through
the plugging, abandonment and salvage of such Wells, except for any decrease (i)
caused by orders of the appropriate regulatory body having jurisdiction over the
Wells  that  are  promulgated  after  the  Effective  Time that concern pooling,
unitization,  communization  or  spacing  matters,  (ii)  caused  by  Buyer, its
successors  or  assigns;  or  (iii)  arising  from  operation  of  any  Contract
proportionately  assigned  to  Buyer  hereby.

     Obligates Sellers, as to the Wells described on EXHIBITS A to bear not more
than  the respective percentages designated as the "Working Interests" set forth
in  such  Exhibits  of  the  costs  and  expenses  relating  to the maintenance,
development  and  operation of the said Wells, through the plugging, abandonment
and  salvage  of  such  Wells,  except for any increase (i) caused by Buyer, its
successors  and  assigns,  (ii)  that  also  results in the Net Revenue Interest
associated  with  the  Well  being proportionately increased, or (iii) caused by

                                       26
<PAGE>

orders  of  the appropriate regulatory agency having jurisdiction over the Wells
that are promulgated after the Effective Time that concern pooling, unitization,
communization  or  spacing  matters;

     Constitutes  all  of Sellers' right, title and interest in and to leasehold
estate  and  working  interest  in  and  to  all  of  the  Assets;  and

     Is  free  and  clear of all Encumbrances except for Permitted Encumbrances.

     8.03.  TITLE DEFECTS. On or before five (5) days before Closing, Buyer will
            -------------
notify  Sellers  in  writing  of  any  matter  affecting the Assets which in the
opinion  of  Buyer  would  not  give  Buyer Defensible Title, in accordance with
Section  8.02  hereof, and the Allocated Value of each such title defect (all of
which  are  herein  called the "Title Defects"). Sellers will thereupon have the
                                -------------
right  but  not  the  obligation  to  attempt to cure the Title Defects at their
expense  on  or  before the Closing Date. If Sellers elect not to cure the Title
Defects  or  the Title Defects cannot be cured or removed to the satisfaction of
Buyer on or before the Closing Date, Buyer may elect in writing (a) to waive the
uncured Title Defects or (b) to eliminate that portion of the Assets affected by
the  Title  Defects  from  the  purchase  and sale hereunder, in which event the
Purchase  Price specified in Section 2.02 will be reduced by the Allocated Value
of  the  portion thereof so excluded; provided, however, that the Purchase Price
will not be adjusted pursuant to this Section 8.03(b) until the aggregate amount
of the value of the Title Defects exceeds $10,000 and then to the full extent of
such  value.  Any  Title Defects which are not objected to by Buyer on or before
five  (5)  days  before  Closing  will  be  deemed waived by the Buyer and to be
Permitted  Encumbrances.

     8.04.  ADJUSTMENTS.  If  only a portion of any of the Assets is affected by
           ------------
Title  Defects, Buyer may elect to accept said Assets and pay a reduced Purchase
Price  based  upon  the  percentage loss of the affected Assets and the Purchase
Price  will  be  adjusted  by  deducting the value of such Title Defect from the
Allocated  Value  of  such  Asset.  If it is determined prior to Closing, by the
Sellers  or  Buyer,  that  Sellers'  net revenue interest in any of the Wells is
greater  than represented herein, the Wells will be increased by a proportionate
adjustment  based  upon the Allocated Value of such Producing Properties, taking
into  account  the relative increase in the expense bearing working interest, if
any,  associated  with  the  increased  net  revenue  interest.

     8.05.  ENVIRONMENTAL  AUDIT.   Buyer   may,   at   its   option,  cause  an
            -------------------
environmental  audit  of the Assets to be conducted until five (5) days prior to
Closing  ("Examination  Period"). PROVIDED THAT, BUYER WILL REPAIR ANY DAMAGE TO
           -------------------
THE  PROPERTIES OF SELLERS RESULTING FROM ITS INSPECTION OF SUCH PROPERTIES, AND
BUYER  WILL  INDEMNIFY,  DEFEND  (INCLUDING REASONABLE ATTORNEYS' FEES) AND HOLD
SELLERS  HARMLESS  FROM  AND  AGAINST  ANY  AND  ALL  LOSSES,  COSTS,  DAMAGES,
OBLIGATIONS, CLAIMS, LIABILITIES, EXPENSES OR CAUSES OF ACTION (COLLECTIVELY THE
"CLAIMS") ARISING FROM SUCH INSPECTIONS, INCLUDING WITHOUT LIMITATION CLAIMS FOR
--------
PERSONAL INJURY, DEATH, PROPERTY DAMAGE AND LIENS FOR SERVICES PROVIDED, IN EACH
INSTANCE,  EXCLUDING CLAIMS RESULTING FROM THE NEGLIGENCE OR STRICT LIABILITY OF
SELLERS  OR  THEIR RESPECTIVE OFFICERS, EMPLOYEES, AND AGENTS. Buyer will notify
Sellers  in writing (the "Environmental Notice") on or before 5:00 p.m. (Central
                          --------------------
Standard  Time)  not  later  than  the  end  of  the  Examination  Period of any

                                       27
<PAGE>

environmental  matters  disclosed  by  such audit or with respect to which Buyer
otherwise  has  knowledge,  that  Buyer  reasonably  believes  in good faith may
constitute  a  Violation  of  Environmental  Laws,  including with such notice a
reasonably  detailed  description  of  the  specific  matter  that is an alleged
Violation  of  Environmental  Laws.  Upon  receipt  of the Environmental Notice,
Sellers  will  have  the  right,  but not the obligation, to attempt to cure the
applicable  environmental  liabilities  attributable  to  the  Violations  of
Environmental  Laws  prior to Closing. Sellers' consideration of, or election to
proceed  with,  any  of  the  remedies  hereunder  will  not  be deemed to be an
admission  by  any  Person  with  respect  to the occurrence of any Violation of
Environmental  Law  or  any  violation  of  any  other  Legal  Requirement.

     8.06. REMEDIES FOR VIOLATIONS OF ENVIRONMENTAL LAWS . In the event that any
           ---------------------------------------------
Violation  of  Environmental  Law  is  not expressly waived by Buyer or cured by
Sellers  on  or  before  the  Closing,  the  following  provisions  will  apply:

          (a)  If, in  Buyer's  reasonable  good  faith  estimate, the aggregate
               amount  to  cure all Violations of Environmental Law described in
               the  Environmental  Notice (collectively, the "Defect Amount") is
               $100,000  or  less,  Buyer  will proceed to Closing in accordance
               with  the  remaining  provisions  hereby  and  such Violations of
               Environmental  Law  will  be  deemed  waived.

          (b)  If, in  Buyer's  reasonable  good  faith  estimate,  the  Defect
               Amount  is  more than $100,000 but less than five percent (5%) of
               the  Purchase  Price,  Buyer will reduce the Purchase Price by an
               amount  equal to the cost to cure the Violations of Environmental
               Law  and  proceed  to  Closing.

          (c)  If, in  Buyer's  reasonable  good  faith  estimate,  the  Defect
               Amount is more than five percent (5%) of the Purchase Price, then
               either  Buyer  or  Sellers may elect to terminate this Agreement.

     8.07.  RIGHT  OF  TERMINATION.  If  the  adjustments  to the Purchase Price
            ----------------------
pursuant  to  Sections  8.03,  8.04  and  8.06  exceed  ten percent (10%) of the
Purchase  Price,  either party may terminate this Agreement by written notice to
the  other  prior to the Closing Date, in which case neither party will have any
liability  to  the  other  except  as  otherwise  set  forth  in this Agreement.

     8.08.  DISPUTES.  If  the  parties  are unable to agree as to (a) whether a
            --------
particular  matter constitutes a Title Defect or Violation of Environmental Law;
(b)  the portion of the Assets affected by the Title Defect or Defect Amount; or
(c)  the appropriate reduction in the Purchase Price to be made upon elimination
from  this transaction of the portion of the Assets affected by the Title Defect
or  Defect Amount; then in those events if Closing occurs the amount of Sellers'
estimate  of  the value of asserted Title Defects and Defect Amount will be used
to  adjust  the  Purchase  Price  in  accordance  with Article 2 for purposes of
Closing,  provided, that Sellers' estimate will be consistent with the Allocated
          --------
Values  set  forth on the Exhibits attached hereto. It is further provided that,
if  the  difference  between  Buyer's  and Sellers' estimates as to such amounts
exceeds  $100,000,  Sellers  may  elect  to terminate this Agreement. If Closing

                                       28
<PAGE>

occurs,  such  disagreement  will  be  resolved  after Closing by arbitration in
accordance  with  Section  9.14.  In  the  event the values of Title Defects and
Defect  Amount as estimated by Buyer are such that Buyer believes it is entitled
to  refuse  to close and Buyer elects to refuse to close, such disagreement will
be  resolved  by  arbitration  in  accordance  with  Section  9.14.

     8.09.  CASUALTY  LOSS  AND  CONDEMNATION.
            ---------------------------------

          (a)  If after  the  date  of  execution  of  this  Agreement and prior
               to  the  Closing  any  part of the Assets is destroyed by fire or
               other  casualty  or  if  any  part  of  the  Assets  is  taken in
               condemnation  or  under  the  right  of  eminent  domain  or  if
               proceedings  for  such  purposes  are pending or Threatened, this
               Agreement  will  remain  in full force and effect notwithstanding
               any  such  destruction,  taking,  proceeding,  or  threat.

          (b)  Except  to  the  extent  permitted  or  required pursuant to this
               Agreement, after the date of execution of this Agreement, without
               Buyer's prior consent, no insurance or condemnation proceeds will
               be  committed  or applied by Sellers prior to the Closing Date to
               repair,  restore,  or  replace  a damaged or taken portion of the
               Assets  if  the  cost to repair, restore, or replace a damaged or
               taken  portion  of  the Assets is projected to exceed $25,000. To
               the  extent such proceeds are not committed or applied by Sellers
               prior  to  the  Closing  Date  in  accordance  with  this Section
               8.07(b),  Sellers  will at the Closing pay to Buyer all sums paid
               to  Sellers  by  reason  of  such destruction or taking, less any
               reasonable  costs  and expenses incurred by Sellers in collecting
               such  proceeds.  In addition and to the extent such proceeds have
               not  been committed or applied by Sellers in accordance with this
               Section  8.07(b),  in  such  repair, restoration, or replacement,
               Sellers  will  transfer  to  Buyer,  at Closing, without recourse
               against Sellers, all of the right, title, and interest of Sellers
               in  and  to any unpaid insurance or condemnation proceeds arising
               out  of such destruction or taking, less any reasonable costs and
               expenses  incurred  by  Sellers  in collecting such proceeds. Any
               such  funds  which  have  been  committed  by Sellers for repair,
               restoration,  or replacement as aforesaid will be paid by Sellers
               for such purposes or, at Sellers' option, delivered to Buyer upon
               Sellers'  receipt  from Buyer of adequate assurance and indemnity
               that  Sellers  will  incur no liability or expense as a result of
               such  commitment.

          (c)  If and  to  the  extent  a  casualty  occurring after the date of
               execution  of this Agreement and before Closing is not covered by
               insurance,  Buyer  and Sellers will attempt to agree on the value
               of  the  uninsured  casualty  on or before the date five (5) days
               after  Buyer  receives  written  notice  of  the casualty. If the
               parties  are  not  able  to agree on such value within such 5-day

                                       29
<PAGE>

               period,  the  value will be determined by an independent casualty
               adjuster,  experienced  in determining casualty losses in matters
               similar  to  the  disputed casualty loss, who will be selected by
               Sellers  from  a  list  of  three  (3)  such independent casualty
               adjusters  that  is  provided  to  Sellers  by  the  Buyer.  Said
               independent  casualty adjuster will be selected by Sellers within
               five  (5)  days  of  the  written  receipt  by Sellers of Buyer's
               written  listing  of  independent  casualty  adjusters  and  will
               provide  both  Sellers  and  Buyer with a complete and documented
               report  as to his findings within ten (10) business days of being
               selected  by  Sellers.

For  purposes of this Section, the value of the uninsured casualty will be equal
to  the lesser of (i) the aggregate reduction in Allocated Value of the affected
portion  of the Assets resulting from the uninsured casualty, or (ii) the amount
required  to  repair  the  affected  portion  of  the  Assets  to  its condition
immediately  preceding  the occurrence of the casualty.  The Purchase Price will
be  reduced  by the amount of the value of such an uninsured casualty as finally
determined  pursuant  to  this  Section,  and if such final determination is not
available  on  the  scheduled  Closing  Date,  Closing  will not be delayed, but
rather, such Purchase Price reduction will be a part of the final adjustments to
be  made  after  Closing  as  contemplated  by  Section  2.05.

     8.10.  SECURING  ASSIGNMENT  OF  WHEELER  ASSIGNMENT.  Buyer  and  Sellers
            ---------------------------------------------
acknowledge  that  Sellers  have earned an interest in a forty acre tract in the
Wheeler  lease described in item 4 in Exhibit B from the farmors with respect to
that  property. If and to the extent that Sellers have not secured an assignment
into  Sellers  prior  to  Closing,  Sellers  shall nonetheless diligently pursue
obtaining  such  an  assignment  and upon receipt of such interests shall assign
over  the  same to Buyer, subject to the terms and conditions of this Agreement.

                                    ARTICLE 9

                               GENERAL PROVISIONS

     9.01.  EXPENSES.  Except  as otherwise expressly provided in this Agreement
            --------
each  party  to  this  Agreement  will  bear its respective expenses incurred in
connection  with  the  preparation, execution, and performance of this Agreement
and  the  Contemplated  Transactions, including all fees and expenses of agents,
representatives,  counsel,  and  accountants.

     9.02.  NOTICES.  All  notices,  consents, waivers, and other communications
           ---------
under  this  Agreement  must  be in writing and will be deemed to have been duly
given  when  (a)  delivered  by hand (with written confirmation of receipt), (b)
sent  by telecopier (with written confirmation of receipt), provided that a copy
is  mailed by registered mail, return receipt requested, or (c) when received by
the  addressee,  if  sent  by a nationally recognized overnight delivery service
(receipt  requested),  in  each case to the appropriate addresses and telecopier
numbers  set forth below (or to such other addresses and telecopier numbers as a
party  may  designate  by  notice  to  the  other  parties):

                                       30
<PAGE>

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

       with  a  copy  to:        W.  Mark  Cotham
                                 Cotham,  Harwell  &  Evans,  P.C.
                                 1616  S.  Voss,  Suite  200
                                 Houston,  Texas  77057

       Sellers:                  L&P  Family  Properties,  Ltd.
                                 Suite  1904
                                 600  Leopard  Street
                                 Corpus  Christi,  Texas  78473

                                 Lara  Energy,  Inc.
                                 Suite  1904
                                 600  Building
                                 Corpus  Christi,  Texas  78473

     9.03. JURISDICTION; SERVICE OF PROCESS. ANY ACTION OR PROCEEDING SEEKING TO
           --------------------------------  -----------------------------------
ENFORCE  ANY  PROVISION OF, OR BASED ON ANY RIGHT ARISING OUT OF, THIS AGREEMENT
--------------------------------------------------------------------------------
OR  THE  CONTEMPLATED TRANSACTIONS MUST BE BROUGHT AGAINST ANY OF THE PARTIES IN
--------------------------------------------------------------------------------
THE COURTS OF THE STATE OF TEXAS, COUNTY OF NUECES, OR, IF IT HAS OR CAN ACQUIRE
--------------------------------------------------------------------------------
JURISDICTION,  IN  THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF
--------------------------------------------------------------------------------
TEXAS  (CORPUS  CHRISTI  DIVISION),  AND  EACH  OF  THE  PARTIES CONSENTS TO THE
--------------------------------------------------------------------------------
JURISDICTION  OF  SUCH  COURTS  (AND OF THE APPROPRIATE APPELLATE COURTS) IN ANY
--------------------------------------------------------------------------------
SUCH  ACTION  OR  PROCEEDING  AND  WAIVES  ANY  OBJECTION TO VENUE LAID THEREIN.
--------------------------------------------------------------------------------
PROCESS IN ANY ACTION OR PROCEEDING REFERRED TO IN THE PRECEDING SENTENCE MAY BE
--------------------------------------------------------------------------------
SERVED  ON  ANY  PARTY  ANYWHERE  IN  THE  WORLD.
------------------------------------------------

     9.04.  FURTHER ASSURANCES. The parties agree (a) to furnish upon request to
            ------------------
each  other  such  further information, (b) to execute and deliver to each other
such other documents, and (c) to do such other acts and things, all as the other
party  may reasonably request for the purpose of carrying out the intent of this
Agreement  and  the  documents  referred  to  in  this  Agreement.

     9.05.  WAIVER. The rights and remedies of the parties to this Agreement are
            ------
cumulative  and  not alternative. Neither the failure nor any delay by any party
in  exercising  any  right,  power,  or  privilege  under  this Agreement or the
documents  referred to in this Agreement will operate as a waiver of such right,
power, or privilege, and no single or partial exercise of any such right, power,
or  privilege  will preclude any other or further exercise of such right, power,
or  privilege  or  the  exercise of any other right, power, or privilege. To the
maximum extent permitted by applicable law, (a) no claim or right arising out of
this  Agreement or the documents referred to in this Agreement can be discharged
by  one  party, in whole or in part, by a waiver or renunciation of the claim or
right  unless  in  writing  signed by the other party; (b) no waiver that may be
given by a party will be applicable except in the specific instance for which it
is  given;  and  (c)  no notice to or demand on one party will be deemed to be a

                                       31
<PAGE>

waiver  of any obligation of such party or of the right of the party giving such
notice  or demand to take further action without notice or demand as provided in
this  Agreement  or  the  documents  referred  to  in  this  Agreement.

     9.06.  ENTIRE  AGREEMENT  AND  MODIFICATION.  This Agreement supersedes all
            ------------------------------------
prior  agreements  between  the  parties  with respect to its subject matter and
constitutes  (along with the documents referred to in this Agreement) a complete
and  exclusive  statement of the terms of the agreement between the parties with
respect  to  its  subject  matter. This Agreement may not be amended except by a
written  agreement  executed  by  the party to be charged with the amendment. No
representation,  promise,  inducement  or statement of intention with respect to
the  subject  matter  of  this Agreement has been made by any party which is not
embodied in this Agreement together with the documents, instruments and writings
that are delivered pursuant hereto, and none of the parties shall be bound by or
liable  for  any  alleged  representation,  promise,  inducement or statement of
intention  not  so  set  forth.

     9.07.  ASSIGNMENTS,  SUCCESSORS,  AND  NO THIRD-PARTY RIGHTS. Any party may
            -----------------------------------------------------
assign  any of its rights under this Agreement provided that any such assignment
will  not  relieve  such  party  of  any of its obligations under this Agreement
without  the  prior  consent  of  any  other  party.  Subject  to  the preceding
sentences,  this  Agreement  will apply to, be binding in all respects upon, and
inure  to  the  benefit  of the successors and permitted assigns of the parties.
Nothing expressed or referred to in this Agreement will be construed to give any
Person  other  than  the  parties  to  this  Agreement  or  any  other agreement
contemplated  herein,  any  legal  or equitable right, remedy, or claim under or
with  respect  to  this  Agreement  or  any  provision  of  this Agreement. This
Agreement,  any  other  agreement  contemplated  herein,  and all provisions and
conditions  hereof  and  thereof  are  for the sole and exclusive benefit of the
parties  to  this  Agreement  and  such  other  agreements, and their respective
successors  and  assigns.

     9.08.  SEVERABILITY.  If any provision of this Agreement is held invalid or
            ------------
unenforceable  by  any  court of competent jurisdiction, the other provisions of
this  Agreement  will  remain  in  full  force and effect. Any provision of this
Agreement  held  invalid  or unenforceable only in part or degree will remain in
full  force  and  effect  to  the  extent  not  held  invalid  or unenforceable.

     9.09.  SECTION  HEADINGS,  CONSTRUCTION.  The  headings of Sections in this
            --------------------------------
Agreement are provided for convenience only and will not affect its construction
or  interpretation.  All  references  to  "Section"  or  "Sections" refer to the
corresponding  Section  or  Sections  of  this Agreement. All words used in this
Agreement  will be construed to be of such gender or number as the circumstances
require.  Unless  otherwise  expressly  provided,  the word "including" does not
limit  the  preceding  words  or  terms.

     9.10.  TIME OF ESSENCE. With regard to all dates and time periods set forth
            ---------------
or  referred  to  in  this  Agreement,  time  is  of  the  essence.

                                       32
<PAGE>

     9.11.  GOVERNING  LAW.  This  Agreement and the relationship of the parties
            --------------
with respect to the Contemplated Transaction will be governed by the laws of the
State  of  Texas  without  regard  to  conflicts  of  laws  principles.

     9.12.  COUNTERPARTS.  This  Agreement  may  be  executed  in  one  or  more
            ------------
counterparts,  each  of  which  will  be  deemed  to be an original copy of this
Agreement  and  all  of which, when taken together, will be deemed to constitute
one  and  the  same  agreement.

     9.13.  WAIVER OF TEXAS DECEPTIVE TRADE PRACTICES - CONSUMER PROTECTION ACT.
            --------------------------------------------------------------------
Buyer's rights and remedies with respect to this transaction and with respect to
all  acts  or practices of Sellers, past, present, or future, in connection with
this  transaction  will  be  governed  by  legal principles other than the Texas
Deceptive  Trade  Practices  - Consumer Protection Act, V.C.T.A. BUS & COMM Ann.
Sec. 17.41 et seq. (the "DTPA"), or any similar statute of any jurisdiction that
may  be  applicable  to  the  transactions  contemplated  hereby.  Buyer  hereby
unconditionally waives the applicability of the DTPA, or any similar statute, to
this  transaction  and  any  and  all  rights, duties, or remedies that might be
imposed  by  the DTPA, or any similar statute, provided, however, Buyer does not
waive  Section  17.555 of the DTPA. Buyer represents, warrants, and acknowledges
that  it  is purchasing the Assets for commercial or business use. Buyer further
acknowledges,  represents,  and warrants that Buyer has knowledge and experience
in financial and business matters that enables it to evaluate the merits and the
risks  of  a  transaction  such as this and that Buyer is not in a significantly
disparate  bargaining  position  with  Sellers. Buyer expressly acknowledges and
recognizes  that  the price for which Sellers have agreed to sell the Assets and
perform  its  obligations  under the terms of this Agreement has been predicated
upon the inapplicability of the DTPA, or any similar statute, and this waiver of
the  DTPA,  and any similar statute, by the Buyer. Buyer further recognizes that
Sellers,  in  determining  To  proceed  with  entering into this Agreement, have
expressly  relied  on  the  provisions  of  this  Section  9.13.

     9.14.  ARBITRATION.  All  disputes, controversies, or claims that may arise
            -----------
among  the  parties  relating  to  this  Agreement  will  be  submitted  to, and
determined  by,  binding arbitration. The arbitration will be conducted before a
single arbitrator pursuant to the Commercial Arbitration Rules then in effect of
the  American Arbitration Association. The arbitrator will apply the laws of the
State  of  Texas  (without  regard  to  conflict  of  law rules) to the dispute,
controversy, or claim. Evidentiary questions will be governed by the Texas Rules
of  Evidence.  The  arbitrator's  award  will  be in writing and shall set forth
findings  and  conclusions  upon  which  the  arbitrator  based  the  award. The
prevailing  party  in the arbitration will be entitled to recover its reasonable
attorneys'  fees,  costs,  and  expenses  incurred  in  connection  with  the
arbitration,  as  determined  by  the  arbitrator.  Any  award  pursuant  to the
arbitration will be final and binding upon the parties and judgment on the award
may be entered in any federal or state court having jurisdiction. The provisions
of  this Section will survive the termination of this Agreement. Notwithstanding
the  foregoing,  this Section will not prevent any party from seeking injunctive
relief  from  a court of competent jurisdiction under appropriate circumstances,
provided, however, such action will not constitute a waiver of the provisions of
this  Section.

                                       33
<PAGE>

     9.15.  TAX  DEFERRED  EXCHANGE.  If  Sellers  so  request,  Buyer agrees to
            -----------------------
cooperate  with  Sellers in a tax-deferred exchange described in Section 1031 of
the  Internal  Revenue  Code of 1986, as amended. Notwithstanding the foregoing,
Buyer  shall  not  be  obligated to enter into any agreement or to consent to an
assignment of Sellers' rights or obligations hereunder which may have the effect
of (i) impairing the title to the Assets, (ii) increasing Buyer's obligations or
liability hereunder or resulting in any additional cost, expense or liability to
Buyer; or (iii) requiring Buyer to execute a purchase agreement for the purchase
of  the  exchange  property  or  to  take record title to the exchange property.
Sellers  hereby  agree  to  indemnify,  defend  and hold Buyer harmless from and
against  any  and  all  costs,  expenses, claims, damages, losses or liabilities
(including,  without limitation, reasonable attorney fees and costs) incurred by
Buyer  in  connection  with  any  exchange  transaction  or  transactions or the
performance  by  Buyer  of  its  obligations  pursuant  to  this  Section.

     9.16.  PRESS  RELEASE. Except as may be required by applicable law, neither
            --------------
Buyer nor Sellers will issue at or prior to Closing any publicity or other press
release  without  the prior written consent of the other party. After Closing of
the  Contemplated  Transactions,  it is agreed that Buyer will issue any and all
such releases, and Sellers will not do so without Buyer's prior written consent.

     IN  WITNESS WHEREOF, the parties have executed and delivered this Agreement
as  of  the  date  first  written  above.

                                  SELLERS:
                                  --------

                                  J&P  FAMILY  PROPERTIES,  LTD.

                                  BY: /s/ Jim Wheeler
                                     ---------------------------
                                  NAME: Jim Wheeler
                                       -------------------------
                                  TITLE: President
                                        ------------------------

                                  LARA  ENERGY,  INC.

                                  BY: /s/ John E. Hearn Jr.
                                     ---------------------------
                                  NAME: John E. Hearn Jr.
                                       -------------------------
                                  TITLE: President
                                        ------------------------

                                  /s/ John E. Hearn Jr.
                                  ------------------------------
                                  John  E.  Hearn

                                  /s/ Jim Wheeler
                                  ------------------------------
                                  Jim  Wheeler

                                       34
<PAGE>

                                  BUYER:
                                  -------

                                  GULF  COAST  OIL  CORPORATION

                                  BY: /s/ Edward R. DeStefano
                                     ---------------------------
                                  NAME: Edward R. DeStefano
                                       -------------------------
                                  TITLE: President
                                        ------------------------

                                       35
<PAGE>

                                    EXHIBIT A

                                SCHEDULE OF WELLS
                                -----------------

Well Name                        API
Hodde #1                    42-311-33809
Double K #2                 42-311-33828
Double K #3                 42-311-33811
Kassner #1                  42-311-33818
Kassner #2                  42-311-33833
Tyler Ranch Unit Well #1    42-311-33826
Peacock #1                  42-311-33831
Powers-Swaim Unit Well #1   42-311-33846
Swaim 58-1                  42-311-33863
Wheeler #1                  42-311-33882
Rabke/Maspero Unit # 1      42-311-33893
Cajun Caper Unit # 1        42-311-33872

<PAGE>

Mustang  Creek  - PSA with New Century - Corrections to Exhibit A list of leases
only  -  4/13/06

                               EXHIBIT A (CONTINUED)

                      SCHEDULE OF LEASES AND RIGHTS OF WAY
                      ------------------------------------

1.   Oil, Gas  and Mineral Lease dated March 23, 2005, by and between Rene Roark
     Bowditch,  et  al,  as  Lessor  and  Manti  Mustang  Creek, Ltd. as Lessee,
     covering  700  acres,  more  or  less,  situated  in the B. S. & F. Survey,
     Section  61,  A-150,  the  J.  B. Taylor Survey, Section 68, A-637, and the
     B.S.F.  Survey,  Section  59,  A-149 in McMullen County, Texas, recorded by
     Memorandum  Giving Notice of Oil and Gas Lease dated March 23, 2005, by and
     between  Lessor and Lessee, in Volume 435, Page 440, of the Deed Records of
     McMullen  County,  Texas;  ratified  by  Ratification of Oil and Gas Leases
     dated April 20, 2005, by and between James F. Roark, Jr., and Manti Mustang
     Creek,  Ltd.,  recorded  in  Volume  436,  Page  56  of the Deed Records of
     McMullen  County,  Texas.

2.   Oil, Gas  and  Mineral  Lease dated March 16, 2005, by and between Double K
     Property,  Ltd.,  as  Lessor,  and  Manti  Mustang  Creek, Ltd., as Lessee,
     covering  700  acres,  more  or  less,  situated  in the B. S. & F. Survey,
     Section  61,  A-150,  the  J.  B. Taylor Survey, Section 68, A-637, and the
     B.S.F.  Survey,  Section  59,  A-149 in McMullen County, Texas, recorded by
     Memorandum  Giving Notice of Oil and Gas Lease dated March 16, 2005, by and
     between  Lessor and Lessee, in Volume 435, Page 437, of the Deed Records of
     McMullen  County,  Texas;  ratified  by  Ratification of Oil and Gas Leases
     dated April 20, 2005, by and between James F. Roark, Jr., and Manti Mustang
     Creek,  Ltd.,  recorded  in  Volume  436,  Page  56  of the Deed Records of
     McMullen  County,  Texas.

3.   Oil, Gas  and  Mineral Lease dated February 28, 2005, by and between Four K
     General  Partnership,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  267  acres,  more or less, situated in the George Elliott Survey,
     Section 959, A-181, in McMullen County, Texas recorded by Memorandum Giving
     Notice  of Oil and Gas Lease dated February 28, 2005, by and between Lessor
     and  Lessee,  in  Volume  435,  Page  321,  of the Deed Records of McMullen
     County, Texas; ratified by Ratification of Oil, Gas and Mineral Lease dated
     June  21,  2005,  by  and  between  Alvin Kassner, et al, and Manti Mustang
     Creek,  Ltd.,  recorded  in  Volume  436,  Page  461 of the Deed Records of
     McMullen  County, Texas; amended by Amendment of Oil, Gas and Mineral Lease
     dated  effective  February  28,  2005,  by  and  between Lessor and Lessee,
     increasing  the acreage amount 282 acres, recorded in Volume 437, Page 460,
     of  the  Deed  Records  of  McMullen  County,  Texas.

<PAGE>

4.   Oil, Gas  and  Mineral  Lease  dated  July 19, 2005, by and between Domingo
     Garza Jr., et al, as Lessor and Manti Mustang Creek, as Lessee, covering 83
     acres, more or less, situated in the C. Manchaca Survey, No. 960, A-304, in
     McMullen  County, Texas and recorded by Memorandum Giving Notice of Oil and
     Gas  Lease  dated July 19, 2005, by and between Lessor and Lessee in Volume
     438,  Page  70  of  the  Deed  Records  of  McMullen  County,  Texas.

5.   Oil and  Gas Lease dated March 18, 2005, by and between Susan R. Glover, et
     al, as Lessor and Manti Mustang Creek, Ltd., as Lessee, covering 320 acres,
     more  or  less,  situated  in the W. H. Stout Survey, Section 20, A-1179 in
     Atascosa  County,  Texas and the J. Poitevent Survey, Section 19, A-1021 in
     McMullen  County,  Texas,  A-971  in  Atascosa  County,  Texas, recorded in
     Memorandum  Giving Notice of Oil and Gas Lease dated March 18, 2005, by and
     between  Lessor  and  Lessee in Volume 435, Page 317 of the Deed Records of
     McMullen  County,  Texas  and  Book  307,  Page  694 of the Official Public
     Records  of  Atascosa  County,  Texas;  amended by Amendment to Oil and Gas
     Lease, dated March 6, 2006, correcting the land description, by and between
     Lessor  and  Lessee recorded in Volume 443, Page 147 of the Deed Records of
     McMullen  County,  Texas,  and  Document  No.  80615 of the Official Public
     Records  of  Atascosa  County,  Texas.

6.   Oil, Gas  and  Mineral  Lease  dated  May  13,  2005, by and between Gloria
     Barbara McCarrick Gouger, et al, as Lessor and Manti Mustang Creek, Ltd. as
     Lessee,  covering  643 acres, more or less, situated in the J. G. & O. Fish
     Survey  No.  1073,  A-200  and  the B.B.B. & C. R. R. Survey 1095, A-80, in
     McMullen  County, Texas recorded by Memorandum Giving Notice of Oil and Gas
     Lease  dated  May 13, 2005, by and between Lessor and Lessee in Volume 436,
     Page  398,  of  the  Deed  Records  of  McMullen  County,  Texas.

7.   Oil and  Gas  Lease  dated April 29, 2005 by and between John L. Hardin, as
     Lessor,  and  Manti  Mustang Creek, Ltd., as Lessee, covering 171.42 acres,
     more  or  less,  in  McMullen  County, Texas, recorded by Memorandum Giving
     Notice  of  Oil and Gas Lease dated April 29, 2005, in Volume 436, Page 59,
     of  the  Deed  Records  of  McMullen  County,  Texas.

8.   Oil and  Gas  Lease  dated July 19, 2005, by and between Virginia Henry, as
     Lessor,  and Manti Mustang Creek, Ltd., as Lessee, covering 147 acres, more
     or  less,  situated  in  the  George  Elliott  Survey 959, A-181 and the C.
     Menchaca  Survey  906,  A-304,  in  McMullen  County,  Texas  recorded  by
     Memorandum Giving Notice of Oil and Gas Lease dated August 11, 2005, by and
     between  Lessor  and Lessee, in Volume 438, Page 164 of the Deed Records of
     McMullen  County,  Texas.

<PAGE>

9.   Oil, Gas  and  Mineral  Lease  dated February 1, 2005, by and between A. W.
     Hodde,  Jr.,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering
     572.40  acres,  more or less, situated in the G.C. & S.F. RR Co. Survey No.
     505,  the  F.  H. Burmeister Survey No. 4, and the G. H. & H. RR Co. Survey
     No.  3,  A-219,  in  McMullen  County, Texas, recorded by Memorandum Giving
     Notice  of  Oil and Gas Lease dated February 1, 2005, by and between Lessor
     and Lessee, in Volume 435, Page 331 of the Deed Records of McMullen County,
     Texas.

10.  Oil, Gas  and  Mineral Lease dated February 1, 2005, by and between William
     R.  Meuth,  et  ux,  as  Lessor,  and Manti Mustang Creek, Ltd., as Lessee,
     covering  572.40  acres, more or less, situated in the G. C. & S. F. RR Co.
     Survey No. 505, the F. H. Burmeister Survey No. 4 and the G. H. & H. RR Co.
     Survey  No.  3,  A-219,  in  McMullen County, Texas, recorded by Memorandum
     Giving  Notice  of Oil and Gas Lease dated February 1, 2005, by and between
     Lessor  and Lessee, recorded in Volume 435, Page 334 of the Deed Records of
     McMullen  County,  Texas.

11.  Oil and  Gas  Lease  dated  March  15,  2005,  by  and  between Gayle Crain
     Kuykendall,  et  al,  as  Lessor  and Manti Mustang Creek, Ltd., as Lessor,
     covering  183  acres,  more  or  less, situated in the Thomas Corry Survey,
     Section  834,  A-172,  in McMullen County, Texas, recorded by Memorandum of
     Oil and Gas Lease dated March 15, 2005, by and between Lessor and Lessee in
     Volume  435,  Page  324  of  the  Deed  Records  of McMullen County, Texas.

12.  Oil, Gas  and  Mineral  Lease  dated  June  7,  2005,  by  and  between MFB
     Partnership,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering
     640  acres,  more  or less, situated in the Maddox Bros. & Anderson Survey,
     Section  2, A-697, in McMullen County, Texas, recorded by Memorandum of Oil
     and Gas Lease dated June 7, 2005 by and between Lessor and Lessee in Volume
     436,  Page  471  of  the  Deed  Records  of  McMullen  County,  Texas.

13.  Oil, Gas and Mineral Lease dated May 16, 2005, by and between John Mahoney,
     et  al,  as  Lessor  and Manti Mustang Creek, Ltd., as Lessee, covering 320
     acres,  more or less, situated in the J. M. Hernandez Survey No. 34, A-225,
     in  McMullen County, Texas, recorded by Memorandum Giving Notice of Oil and
     Gas  Lease  dated  May 16, 2005, by and between Lessor and Lessee in Volume
     436,  Page  265  of  the  Deed  Records  of  McMullen  County,  Texas.

14.  Oil, Gas  and  Mineral  Lease  dated  April  8, 2005, by and between Guy P.
     Peacock,  as  Lessor and Manti Mustang Creek, Ltd., as Lessee, covering 374
     acres,  more  or less, situated in the Gabriel Vallagram Survey, Section 8,
     A-485,  in  McMullen County, Texas, recorded by Memorandum Giving Notice of
     Oil and Gas Lease dated April 19, 2005, by and between Lessor and Lessee in
     Volume  436,  Page  62  of  the  Deed  Records  of  McMullen County, Texas.

<PAGE>

15.  Oil and  Gas Lease dated April 8, 2005, by and between Lester Powers Ranch,
     Inc.,  as  Lessor,  and  Manti Mustang Creek, Ltd., as Lessee, covering 300
     acres,  more or less, situated in the B. S. & F. Survey, Section 65, A-152,
     J.  B.  Taylor  Survey,  Section 68, A-637 and the Chas. S. Burbank Survey,
     Section  10, A-61, in McMullen County, Texas, recorded by Memorandum Giving
     Notice  of Oil and Gas Lease dated April 8, 2005, by and between Lessor and
     Lessee,  recorded  in Volume 435, Page 472, of the Deed Records of McMullen
     county,  Texas,  corrected by Corrected Memorandum Giving Notice of Oil and
     Gas  Lease dated April 8, 2005, by and between Lessor and Lessee, in Volume
     438,  Page  346  of  the  Deed  Records  of  McMullen  County,  Texas.

16.  Oil, Gas  and  Mineral  Lease dated March 12, 2005, by and between Henry B.
     Rabke,  M.D., as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering
     200  acres,  more or less, situated in the J. G. & O. Fish Survey No. 1073,
     A-200  and  the  B.B.B.  &  C. R. R. Survey 1095, A-80, in McMullen County,
     Texas,  recorded  by  Memorandum  Giving  Notice of Oil and Gas Lease dated
     March  12,  2005, by and between Lessor and Lessee, in Volume 435, Page 328
     of  the  Deed  Records  of  McMullen  County, Texas, corrected by Corrected
     Memorandum  Giving Notice of Oil and Gas Lease dated March 12, 2005, by and
     between  Lessor  and  Lessee, recorded in Volume 436, Page 253, of the Deed
     Records  of  McMullen County, Texas; said lease ratified by Ratification of
     Oil  and Gas Lease dated effective March 12, 2005, by and between Billie H.
     Rabke  and  Manti  Mustang Creek, Ltd., recorded in Volume 436, Page 256 of
     the  Deed  Records  of  McMullen  County,  Texas.

17.  Oil, Gas  and  Mineral Lease dated June 15, 2005, by and between Bernadette
     Maspero  Schultz,  et  al,  as  Lessor,  and  Manti Mustang Creek, Ltd., as
     Lessee,  covering  80  acres,  more or less, situated in the B.B.B. & C. RR
     Survey  No.  1,  Abstract  81,  in  McMullen  County,  Texas,  recorded  by
     Memorandum  Giving  Notice of Oil and Gas Lease dated June 20, 2005, by and
     between  Lessor  and Lessee, in Volume 436, Page 466 of the Deed Records of
     McMullen County, Texas; ratified by Ratification of Oil and Gas Lease dated
     effective June 15, 2005, executed October 5, 2005, by and between Victor E.
     Maspero  and  Manti Mustang Creek, Ltd., recorded in Volume 439, Page 49 of
     the  Deed  Records  of  McMullen  County,  Texas.

18.  Oil, Gas  and  Mineral  Lease  dated  June  15,  2005,  by and between Leon
     Franklin  Steinle,  et  al,  as  Lessor,  and Manti Mustang Creek, Ltd., as
     Lessee,  covering  403 acres, more or less, situated in the J. M. Hernandez
     Survey,  No.  33,  A-224  and  the  McKinney & Williams Survey, Section 16,
     A-339,  in  McMullen  County,  Texas, recorded by Memorandum of Oil and Gas
     Lease dated June 15, 2005, by and between Lessor and Lessee, in Volume 437,
     Page  07,  of  the  Deed  Records  of  McMullen  County,  Texas.

<PAGE>

19.  Oil, Gas and Mineral Lease dated June 9, 2005, by and between Robert Murray
     Swaim,  et al, as Lessor and Manti Mustang Creek, Ltd., as Lessee, covering
     403  acres,  more  or less, situated in the J. M. Hernandez Survey, No. 33,
     A-224  and  the  McKinney & Williams Survey, Section 16, A-339, in McMullen
     County,  Texas,  recorded  by Memorandum Giving Notice of Oil and Gas Lease
     dated  June  9, 2005, by and between Lessor and Lessee, in Volume 436, Page
     387  of  the  Deed  Records  of  McMullen  County,  Texas.

20.  Oil and  Gas  Lease dated August 31, 2005, by and between Michael Swaim, et
     ux,  as  Lessor,  and  Manti  Mustang  Creek, Ltd., as Lessee, covering 217
     acres,  more or less, situated in the J. M. Hernandez Survey, No. 33, A-224
     and  the McKinney & Williams Survey, Section 16, A-339, in McMullen County,
     Texas, recorded by Memorandum Giving Notice of Existance of Oil & Gas Lease
     dated  August  31,  2005,  by and between Lessor and Lessee, in Volume 438,
     Page  262,  of  the  Deed  Records  of  McMullen  County,  Texas.

21.  Oil and  Gas  Lease dated August 31, 2005, by and between Michael Swaim, et
     ux,  as  Lessor,  and  Manti  Mustang  Creek, Ltd., as Lessee, covering 186
     acres, more or less, situated in the J. M. Hernandez Survey, No. 33, A-224,
     in  McMullen  County,  Texas,  recorded  by  Memorandum  Giving  Notice  of
     Existance  of  Oil & Gas Lease dated August 31, 2005, by and between Lessor
     and  Lessee,  in  Volume  438,  Page  265,  of the Deed Records of McMullen
     County,  Texas.

22.  Oil and Gas Lease dated July 20, 2005, by and between Michael Swaim, et ux,
     as  Lessor,  and  Manti Mustang Creek, Ltd., as Lessee, covering 144 acres,
     more  or  less,  situated in the J. B. Taylor Survey, Section 58, A-636 and
     the  J.  B.  Taylor  Survey,  Section 60, A-633, in McMullen County, Texas,
     recorded  by Memorandum Giving Notice of Existance of Oil & Gas Lease dated
     July  20,  2005, by and between Lessor and Lessee, in Volume 437, Page 464,
     of  the  Deed  Records  of  McMullen  County,  Texas.

23.  Oil and  Gas  Lease dated August 11, 2005 by and between James L. Rayes, et
     al,  as  Lessor,  and  Manti  Mustang  Creek, Ltd., as Lessee, covering 450
     acres,  more  or  less,  situated  in  McMullen  County, Texas, recorded by
     Memorandum  Giving  Notice of Oil & Gas Lease dated August 11, 2005, by and
     between  Lessor  and Lessee, in Volume 438 Page 168, of the Deed Records of
     McMullen  County,  Texas, and Document No. 75905 of the Official Records of
     Atascosa  County, Texas; said lease ratified by Ratification of Oil and Gas
     Lease,  dated  effective  August  11,  2005,  by  Patrick O. Rayes, General
     Partner  of  The  Patrick  O.  Rayes  Family Partnership, Ltd., recorded in
     Volume  439,  Page  30  of  the Deed Records of McMullen County, Texas, and
     Document  No.  77067  of  the  Official  Records of Atascosa County, Texas.

<PAGE>

24.  Oil and  Gas Lease dated March 18, 2005 by and between Patrick O. Rayes, et
     al,  as  Lessor,  and  Manti  Mustang  Creek, Ltd., as Lessee, covering 320
     acres,  more  or  less,  situated  in  the J. T. Cresap Survey, Section 10,
     A-1554,  in  Atascosa  County,  Texas and A-1199 in McMullen County, Texas,
     recorded  by  Memorandum  Giving  Notice of Oil & Gas Lease dated March 18,
     2005, by and between Lessor and Lessee in Volume 435, Page 313, of the Deed
     Records  of  McMullen  County, Texas and Book 307, Page 699 of the Official
     Public  Records  of  Atascosa  County,  Texas;  said  lease  ratified  by
     Ratification  of  Oil  and Gas Lease dated effective March 18, 2005, by and
     between  Lynn Krause Dowdy and husband Preston Dowdy and Myra Krause Waters
     and  husband  George  C.  Waters and Manti Mustang Creek, Ltd., recorded in
     Volume  443,  Page  394  of the Deed Records of McMullen County, Texas, and
     Document  No.  81135,  of  the  Official Records of Atascosa County, Texas.

25.  Oil, Gas  and  Mineral  Lease  dated May 20, 2005, by and between Rodney W.
     Swaim,  Jr.,  et  al,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  102  acres,  more  or  less, situated in the J. B. Taylor Survey,
     Section 58, A-636, in McMullen County, Texas, recorded by Memorandum Giving
     Notice  of  Oil and Gas Lease dated May 20, 2005, by and between Lessor and
     Lessee,  in  Volume  436, Page 343, of the Deed Records of McMullen County,
     Texas.

26.  Oil, Gas  and  Mineral  Lease  dated  May  20,  2005, by and between Wesley
     Franklin Swaim, et ux, as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  70  acres,  more  or  less,  situated in the J. B. Taylor Survey,
     Section 60, A-633, in McMullen County, Texas, recorded by Memorandum Giving
     Notice  of  Oil and Gas Lease dated May 20, 2005, by and between Lessor and
     Lessee,  in  Volume  436, Page 395, of the Deed Records of McMullen County,
     Texas.

27.  Oil, Gas and Mineral Lease dated May 20, 2005, by and between Robert Murray
     Swaim, et al, as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering
     144  acres,  more or less, situated in the J. B. Taylor Survey, Section 58,
     A-636  and  the J. B. Taylor Survey, Section 60, A-633, in McMullen County,
     Texas,  recorded by Memorandum Giving Notice of Oil and Gas Lease dated May
     20, 2005, by and between Lessor and Lessee, in Volume 436, Page 363, of the
     Deed  Records  of  McMullen  County,  Texas.

28.  Oil, Gas  and Mineral Lease dated July 26, 2005, by and between G. Franklin
     Swaim, et al, as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering
     222  acres,  more  or less, situated in the B. S. & Forwood Survey, No. 57,
     A-148,  in  McMullen County, Texas, recorded by Memorandum Giving Notice of
     Oil and Gas Lease dated July 26, 2005, by and between Lessor and Lessee, in
     Volume  438,  Page  76,  of  the  Deed  Records  of McMullen County, Texas;
     ratified  by  Ratification  of  Oil  and Gas Lease dated effective July 16,
     2005, by and between Wesley Franklin Swaim, et ux, and Manti Mustang Creek,
     Ltd.,  recorded  in  Volume  438,  Page 228 of the Deed Records of McMullen
     County,  Texas,  and Ratification of Oil and Gas Lease dated effective July

<PAGE>

     16,  2005,  by  and between Robert Murray Swaim, Sallie Swaim, Arthur Wayne
     Swaim  and Sherrill Swaim and Manti Mustang Creek, Ltd., recorded in Volume
     438,  Page  225  of  the  Deed  Records  of  McMullen  County,  Texas.

29.  Oil Gas  and  Mineral  Lease  dated  May  20, 2005 by and between Rodney W.
     Swaim,  Jr.,  et  al,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  208  acres, more or less, situated in B. S. & F. Survey 65, A-152
     and the B. S. & F. Survey 67, A-153, in McMullen County, Texas, recorded by
     Memorandum  Giving  Notice  of Oil and Gas Lease dated May 20, 2005, by and
     between  Lessor  and Lessee, in Volume 436, Page 334 of the Deed Records of
     McMullen  County,  Texas.

30.  Oil, Gas  and  Mineral  Lease  dated  May  20,  2005, by and between Wesley
     Franklin Swaim, et ux, as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  312  acres,  more  or  less,  situated  in the B. S. & F. Survey,
     Section 65, A-152, in McMullen County, Texas, recorded by Memorandum Giving
     Notice  of  Oil and Gas Lease dated May 20, 2005, by and between Lessor and
     Lessee,  in  Volume  436, Page 392, of the Deed Records of McMullen County,
     Texas.

31.  Oil and Gas Lease dated July 26, 2005, by and between Rodney W. Swaim, Jr.,
     et  al,  as  Lessor,  and Manti Mustang Creek, Ltd., as Lessee, covering 60
     acres,  more  or  less,  situated  in  McMullen  County, Texas, recorded by
     Memorandum  Giving  Notice of Oil and Gas Lease dated July 26, 2005, by and
     between  Lessor  and Lessee, in Volume 438, Page 86, of the Deed Records of
     McMullen  County,  Texas,  that  has been corrected by Corrected Memorandum
     Giving  Notice of Oil and Gas Lease, dated November 9, 2005, by and between
     Lessor  and Lessee, recorded in Volume 441, Page 166 of the Deed Records of
     McMullen  County,  Texas.

32.  Oil and  Gas  Lease dated July 26, 2005, by and between Wesley F. Swain, et
     ux, as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering 50 acres,
     more or less, situated in McMullen County, Texas, recorded by Memorandum of
     Giving  Notice  of  Oil  and  Gas Lease dated July 26, 2005, by and between
     Lessor and Lessee, in Volume 438, Page 349, of the Deed Records of McMullen
     County,  Texas.

33.  Oil and  Gas  Lease  dated  March  30,  2005,  by  and  between Tyler Ranch
     Partners,  Ltd.,  as  Lessor  and  Manti  Mustang  Creek,  Ltd., as Lessee,
     covering 390.81 acres, more or less, situated in the J. G. & O. Fisk Survey
     1073,  A-200  and  the  J. Hernandez Survey 962, A-229, in McMullen County,
     Texas, recorded by Memorandum of Oil and Gas Lease dated March 20, 2005, by
     and  between  Lessor and Lessee, in Volume 436, Page 01 of the Deed Records
     of  McMullen  County,  Texas; ratified by Ratification of Oil and Gas Lease
     dated  effective  March  30,  2005 by and between Will Grant Ryan and Manti
     Mustang  Creek,  Ltd., recorded in Volume 436, Page 331 of the Deed Records
     of  McMullen  County,  Texas.

<PAGE>

34.  Oil, Gas  and Mineral Lease dated February 17, 2005, by and between Jo Anne
     Henry,  et  al, as Lessor, and Lara Energy, Inc., as Lessee, covering 276.6
     acres, more or less, situated in the F. H. Burmeister Survey No. 4, A-1061,
     the  G.  H.  &  H.  R. R. Survey No. 5, A-216, the F. H. Burmeister Survey,
     Section  4, A-1081, the James Montgomery Survey, A-1006, and the G. C. & S.
     F.  R.  R. Survey, A-930, in McMullen County, Texas, recorded by Memorandum
     of  Oil, Gas and Mineral Lease, by and between Lessor and Lessee, in Volume
     435,  Page  402  of  the  Deed  Records  of  McMullen  County,  Texas.

35.  Oil and  Gas  Lease  dated March 30, 2005, by and between American National
     Insurance  Company,  as  Lessor,  and Manti Mustang Creek, Ltd., as Lessee,
     covering  320  acres,  more  or  less, situated in the Maddox Bros. and the
     Anderson  Survey,  Section 2, A-697, in McMullen County, Texas, recorded by
     Memorandum of Oil and Gas Lease dated April 11, 2005, by and between Lessor
     and Lessee, in Volume 436, Page 07, of the Deed Records of McMullen County,
     Texas.

36.  Oil, Gas  and Mineral Lease dated September 28, 2005, by and between George
     H.  Smyer,  as  Lessor,  and Manti Mustang Creek, Ltd., as Lessee, covering
     31.029 acres, more or less, situated in the E. S. Stout Survey, Section 18,
     A-1032,  in McMullen County, Texas, recorded by Memorandum Giving Notice of
     Oil  and  Gas  Lease  dated  September  28, 2005, by and between Lessor and
     Lessee,  in  Volume  439, Page 140, of the Deed Records of McMullen County,
     Texas.

37.  Oil, Gas and Mineral Lease dated November 15, 2005, by and between Hortense
     Karbach  Properties,  as  Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  25.6377  acres, more or less, situated in the E. S. Stout Survey,
     Section  18,  A-1032,  in  McMullen  County,  Texas, recorded by Memorandum
     Giving  Notice of Oil and Gas Lease dated November 15, 2005, by and between
     Lessor and Lessee, in Volume 440, Page 339, of the Deed Records of McMullen
     County,  Texas.

38.  Oil, Gas  and Mineral Lease dated November 15, 2005, by and between Eugenia
     Wells  Webster, et al, as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  63.333acres,  more  or  less, situated in the E. S. Stout Survey,
     Section  18,  A-1032,  in  McMullen  County,  Texas, recorded by Memorandum
     Giving  Notice of Oil and Gas Lease dated November 15, 2005, by and between
     Lessor and Lessee, in Volume 440, Page 343, of the Deed Records of McMullen
     County,  Texas.

39.  Oil, Gas  and Mineral Lease dated December 28, 2005, by and between Clifton
     Wheeler,  Jr.,  et al, as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  80  acres, more or less, situated in the Jose A. Hernandez Survey
     962,  A-229 in McMullen County, Texas, recorded by Memorandum Giving Notice
     of  Oil  and  Gas  Lease dated December 28, 2005, by and between Lessor and
     Lessee,  in  Volume  441, Page 286, of the Deed Records of McMullen County,
     Texas.

<PAGE>

40.  Oil, Gas  and Mineral Lease dated December 22, 2005, by and between Domingo
     Garza,  Jr.,  et  al,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  50  acres,  more or less, situated in the C. Menchaca Survey, No.
     960, A-304, in McMullen County, Texas, recorded by Memorandum Giving Notice
     of  Oil  and  Gas  Lease dated December 22, 2005, by and between Lessor and
     Lessee,  in  Volume  441,  Page 72, of the Deed Records of McMullen County,
     Texas.

41.  Oil, Gas and Mineral Lease dated November 11, 2005, by and between Virginia
     Henry,  as  Lessor,  and  Manti Mustang Creek, Ltd., as Lessee, covering 20
     acres, more or less, situated in the C. Menchaca Survey, No. 960, A-304, in
     McMullen County, Texas, recorded by Memorandum Giving Notice of Oil and Gas
     Lease  dated November 11, 2005, by and between Lessor and Lessee, in Volume
     441,  Page  162,  of  the  Deed  Records  of  McMullen  County,  Texas.

42.  Oil and  Gas  Lease  dated  March  1,  2006,  by  and  between Devon Energy
     Production  Company,  L.P.,  as  Lessor,  and Manti Mustang Creek, Ltd., as
     Lessee,  covering  160  acres,  more  or  less, situated in the W. H. Stout
     Survey, Section 20, A-1179, in Atascosa County, Texas, recorded as File No.
     80617  of  the  Oil  and  Gas  Lease  Records  of  Atascosa  County, Texas.

43.  Oil and  Gas  Lease dated March 8, 2006, by and between Texas Osage Royalty
     Pool,  Inc.,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering
     160  acres,  more  or less, situated in the W. H. Stout Survey, Section 20,
     A-1179,  in  Atascosa  County, Texas, recorded by Memorandum of Oil and Gas
     Lease  as  File  No.  80616  of  the  Oil and Gas Lease Records of Atascosa
     County,  Texas.

44.  Oil and  Gas  Lease  dated June 16, 1951, by and between Clifton Wheeler et
     ux,  as  Lessor, and V. T. Donnelly, as Lessee, recorded in Volume 48, Page
     480 of the Deed Records of McMullen County, Texas, INSOFAR AND ONLY INSOFAR
     as  Said  Lease  covers the following described 20 acres out of the Jose A.
     Hernandez  Survey  No.  962,  A-229,  to-wit:

          Starting  at  the  southwest  corner  of  the  B.B.B.  &  C.R.R.  Co.
          Survey  No.  1095,  A-80,  being  the  northwest corner of the Clifton
          Wheeler Lease; Thence South 3,333' along the west boundary line of the
          Wheeler Lease to the point of beginning; Thence East 933' and parallel
          with the north survey line of the Jose Hernandez Survey, A-229; Thence
          South  933'  and  parallel  with  western boundary line of the Wheeler
          Lease; Thence West 933' and parallel with the north survey line of the
          Jose  Hernandez  Survey,  A-229;  Thence  North 933' and parallel with
          western  boundary line of the Wheeler Lease to the point of beginning;
          limited  from  the  surface  of  the  earth  down to the stratigraphic
          equivalent  of  the base of the deepest productive interval in the Lee
          Wheeler  #1  Well, corresponding to a depth of 5,224' on the open log.

<PAGE>

     RIGHT  OF  WAYS:

1.   Right of  Way  Agreement  dated  September 30, 2005, by and between Clifton
     Wheeler, Jr., et al, as Grantor, and Manti Mustang Creek, Ltd., as Grantee,
     situated  within  the B. B. B. & C. R. R. Survey, No. 1095, A-80 and the G.
     M. Hernandez Survey, No. 962, A-229, in McMullen County, Texas, recorded in
     Volume  439,  Page  371,  of  the  Deed  Records of McMullen County, Texas.

2.   Right of  Way Agreement dated October 12, 2005, by and between Margaret Ann
     Stephenson,  as Grantor, and Manti Mustang Creek, Ltd., as Lessee, situated
     within  the  G.  H. Smith Survey, No. 26, A-430, in McMullen County, Texas,
     recorded by Memorandum of Pipeline Easement and Right of Way in Volume 439,
     Page  143  of  the  Deed  Records  of  McMullen  County,  Texas.

<PAGE>

                                    EXHIBIT B

                                    CONTRACTS
                                    ---------

1.   Geophysical  Exploration  Agreement  dated  January 8, 2004, by and between
     Manti  Resources,  Inc.,  J  &  P  Oil  and Gas, Inc. and Lara Energy, Inc.
     covering  a  certain  geologic  area  located  in  McMullen,  Live Oak, and
     Atascosa  Counties,  Texas.

2.   Joint Operating  Agreement  dated  January  8,  2004,  by and between Manti
     Operating  Company,  as  Operator,  and  J  &  P Oil and Gas, Inc. and Lara
     Energy,  Inc., as non-Operators, covering the Mustang Creek Area located in
     McMullen,  Atascosa  and  Live  Oak  Counties,  Texas.

3.   Joint Operating  Agreement  dated  December  27, 2005, by and between Manti
     Operating  Company, as Operator, and Petrohawk Properties, LP, Lara Energy,
     inc.,  and  J  &  P Family Properties, Ltd., as Non-Operators, covering the
     Zulu  Area  of  Mustang  Creek  in  McMullen  County,  Texas.

4.   Farmout  Agreement  dated  January 10, 2006, by and between EnerQuest Oil &
     Gas,  LLC  and Chieftain Energy, LLC and Manti Mustang Creek, Ltd. covering
     an  Oil  and Gas Lease dated June 16, 1951, from Clifton Wheeler, et ux, as
     Lessor  and  V.  T. Donnelly, as Lessee, covering lands located in the Jose
     Hernandez  Survey  No.  962, McMullen County, Texas, recorded in Volume 48,
     Page  480,  of the Deed Records of McMullen County, Texas, known as Manti's
     Zulu  Prospect  in  the  Mustang  Creek  Area  in  McMullen  County, Texas.

5.   Declaration of Pooled Unit dated June 20, 2005, forming a one hundred sixty
     (160) acre pooled unit known as the Manti Mustang Creek, Ltd. - Tyler Ranch
     No.  1  Unit,  formed by Manti Mustang Creek, Ltd., recorded in Volume 436,
     Page 426 of the Deed Records of McMullen County, Texas, containing portions
     of  three  leases  and more further described in said Declaration of Pooled
     Unit.

6.   Declaration  of  Pooled  Unit  dated August 26, 2005, forming a one hundred
     sixty  acre  pooled  unit  known  as  the  Manti  Mustang  Creek,  Ltd.  -
     Powers-Swaim  No.  1 Unit, formed by Manti Mustang Creek, Ltd., recorded in
     Volume  438,  Page  352,  of  the  Deed  Records of McMullen County, Texas,
     containing  portions  of  two  leases  and  more  further described in said
     Declaration  of  Pooled  Unit

7.   Declaration  of  Pooled Unit dated December 14, 2005, forming a one hundred
     twenty  acre  pooled  unit  known  as the Manti Mustang Creek, Ltd. - Cajun
     Caper  No.  1  Unit, formed by Manti Mustang Creek, Ltd. recorded in Volume
     440,  Page  348 of the Deed Records of McMullen County, Texas, and File No.
     81171  of  the  Official  Records  of  Atascosa  County,  Texas, containing
     portions  of  three  leases  more  further described in said Declaration of
     Pooled  Unit.

<PAGE>

                                   EXHIBIT B

                              CONTRACTS (CONTINUED)
                              --------------------

8.   Declaration  of  Pooled  Unit  dated  August 8, 2005, forming a one hundred
     sixty  acre  pooled  unit  known  as  the  Manti  Mustang  Creek,  Ltd.,  -
     Rabke-Maspero  Unit  No. 1, formed by Manti Mustang Creek, Ltd. recorded in
     Volume  444,  Page  04  of  the  Deed  Records  of  McMullen County, Texas,
     containing  portions  of  three  leases  more  further  described  in  said
     Declaration  of  Pooled  Unit.

9.   Gulfmark  Oil Purchase Contract Number 51475 by and between Manti Operating
     Company and Gulfmark Energy, Inc., amended by Letter Agreement dated August
     2,  2005.

10.  Facility  Use Agreement dated October 1, 2005, by and between EnerQuest Oil
     &  Gas,  L.L.C.  and  Manti Operating Company covering the San Miguel Field
     Production  Facility  located  in  McMullen  County,  Texas.

11.  Gas Gathering  and Treating Agreement dated October 1, 2005, by and between
     Enbridge  Pipelines  (Texas  Gathering)  L.P.  and  Manti Operating Company
     covering  the area of interest known as the Manti Operating Co. Tyler Ranch
     Unit  No.  1  in  McMullen  County,  Texas.

12.  Seismic Permit Request dated April 1, 2006 by and between Seitel Data, LTD.
     and  Manti  Mustang Creek, LTD. covering approximately 100 acres located in
     the  B.S.F.  Survey  No.  57,  A-148;  approximately 5 acres located in the
     B.S.F. Survey No. 67, A-153; approximately 90 acres located in the B.S.& F.
     Survey  No.  65,  A-152;  approximately  160_acres  located  in J.B. Taylor
     Survey,  Section 68, A-637; and approximately 65 acres located in the Chas.
     S.  Burbank  Survey  No.  10,  A-61.

<PAGE>

                                    EXHIBIT C
                                    ---------

                           ASSIGNMENT AND BILL OF SALE
                           ---------------------------

                         OF OIL, GAS AND MINERAL LEASES
                         ------------------------------

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR
STRIKE  ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED
FOR  RECORD  IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S
LICENSE  NUMBER.

STATE  OF  TEXAS
COUNTIES  OF  McMULLEN
AND  ATASCOSA

                      KNOW ALL MEN BY THESE PRESENTS, THAT:

     This  Assignment  and  Bill  of  Sale  of Oil, Gas and Mineral Leases (this
"Assignment")  is  made  effective as of 7:00 a.m. the 1st day of December, 2005
-----------
(hereinafter  referred  to  as  the "Effective Date"), by and between J&P FAMILY
                                     --------------
PROPERTIES,  LTD.,  a  Texas  Limited Partnership, whose address is, 600 Leopard
Street,  Suite  1904,  Corpus  Christi,  Texas 78473, LARA ENERGY, INC., a Texas
corporation,  whose  address is, 600 Building, Suite 1904, Corpus Christi, Texas
78401  (collectively "Assignors") and Gulf Coast Oil Corporation with an address
                      ---------
of  5851  San  Felipe,  Suite  775,  Houston,  Texas  77057  ("Assignee").
                                                               --------

                                       I.
                                      ---

     NOW,  THEREFORE,  for  and  in  consideration  of the sum of Ten and No/100
Dollars  ($10.00), cash in hand paid, and other good and valuable consideration,
the  receipt and sufficiency of which is hereby acknowledged Assignors do hereby
BARGAIN,  SELL,  ASSIGN  and  TRANSFER  unto  Assignee,  subject to all recorded
royalty and overriding royalty interests, any other outstanding interests, depth
limitations  or reassignment obligations, if any, that may now burden Assignors'
interest  covered  by this Assignment, the following interests, all of which are
hereinafter  sometimes  referred  to  as  the  "Assigned  Interests",  to-wit:
                                                -------------------

a.   All of  Assignors'  right,  title  and  interest in and to the Oil, Gas and
     Mineral  Leases  described  in Exhibit "A" attached hereto and incorporated
     herein  by  reference  for  all purposes (the "Leases"), including, but not
     limited  to,  all  of  Assignors'  leasehold  estate and working interests,
     reversionary  interests,  recoupment  rights  and  any  other  interests
     whatsoever  in, to and under the Leases and Wells located thereon described
     on  Exhibit  "A"  and  as provided in that certain Asset Purchase Agreement
     dated  June 30, 2006, with Assignors and Assignee as parties (the "Purchase
     Agreement");

<PAGE>

b.   All of  Assignors'  right,  title  and  interest  in  and to (i) all of the
     personal  property,  fixtures  and  improvements  now  situated  thereon or
     appurtenant  thereto,  and  all other equipment, including, but not limited
     to,  the  tanks,  gun barrels, pumping units, dehydrators, tubing, wellhead
     equipment,  flowlines and compressors, if any and (ii) all wellbores on the
     lands  covered  by  the  Leases;

c.   All of  Assignors'  right,  title  and  interest  in  and  to all valid and
     existing rights-of-way, easements, surface leases, permits, or licenses now
     or  hereafter  affecting  the  Assigned  Interests;

d.   All of  Assignors'  right,  title  and  interest  in and to any amendments,
     ratifications,  renewals  or  extensions  of  the  Leases;  and

e.   All of  Assignors'  right,  title  and  interest in and to all oil, gas and
     other  minerals  that may be produced from all oil and/or gas wells located
     on  the  Assigned  Interests  subsequent  to  the  Effective  Date  hereof.

Notwithstanding,  the  foregoing  assignment,  it is recognized and acknowledged
that  Assignors  shall,  after  this  Assignment  and  Bill  of Sale, retain the
overriding  royalty  interest  established  by  virtue  of  the Assignment dated
January  24, 2006, recorded at Volume 442, Page 160 of the Real Property Records
of  McMullen  County,  Texas.

                                       II.
                                      ----

     Assignee,  in consideration of the mutual benefits to be derived hereunder,
and  by its acceptance hereof, understands and agrees to the following terms and
conditions:

a.   Assignee  expressly  assumes  the  "Assumed  Liabilities"  defined  in that
                                         --------------------
     certain  Asset  Purchase  Agreement  by  and between Assignors and Assignee
     dated  June  30,  2006  (the  "Purchase  Agreement").
                                    -------------------

b.   Without  limitation  of  the  foregoing  SECTION  II.A.,  Assignee  assumes
     proportionate  responsibility  for  and agrees to plug and abandon each and
     every  well located on the Assigned Interests and to restore the surface of
     the  Assigned  Interests  in accordance with applicable governmental rules,
     regulations,  laws  and  orders, and as may be required under the Leases or
     other  agreements  affecting  the  Assigned  Interests  and if there is any
     financial assurance required by any law, rule, or regulation, then Assignee
     shall  secure  a new financial assurance in the required amount, and supply
     it  to  the  regulatory body requiring such financial assurance, to the end
     that  Assignors'  financial  assurance shall be released and discharged. In
     the  event  Assignee  fails  to do any of the foregoing, Assignee agrees to
     release,  indemnify,  defend  and hold harmless Assignors for all liability
     for  such  failure.

<PAGE>

d.   Without  limitation  of  the  foregoing  SECTION  II.A.,  Assignee  hereby
     expressly  assumes  and  agrees  to  be  bound by and to perform all of the
     duties and obligations accruing after the Effective Date of this Assignment
     under  the  Leases  or  any  agreement  affecting  the  Assigned  Interests
     proportionately  attributable  to  the percentage interest herein assigned.
     ASSIGNEE, ITS SUCCESSORS AND ASSIGNS, HEREBY AGREES TO INDEMNIFY AND DEFEND
     ASSIGNORS,  ITS  OFFICERS,  DIRECTORS,  AGENTS,  EMPLOYEES,  SUCCESSORS AND
     ASSIGNS,  FROM  AND  AGAINST  ALL  CLAIMS,  DEMANDS  AND  CAUSES OF ACTION,
     INCLUDING  COSTS OF CLEAN-UP OR PLUGGING LIABILITIES FOR ANY AND ALL WELLS,
     BROUGHT  BY ANY AND ALL PERSONS, INCLUDING (WITHOUT LIMITATION), ASSIGNEE'S
     AND  ASSIGNORS'  EMPLOYEES,  AGENTS,  OR REPRESENTATIVES AND ALSO INCLUDING
     (WITHOUT  LIMITATION) ANY PRIVATE CITIZENS, PERSONS, ORGANIZATIONS, AND ANY
     AGENCY,  BRANCH OR REPRESENTATIVE OF FEDERAL, STATE OR LOCAL GOVERNMENT, ON
     ACCOUNT  OF ANY PERSONAL INJURY OR DEATH OR DAMAGE, DESTRUCTION, OR LOSS OF
     PROPERTY,  CONTAMINATION OF NATURAL RESOURCE (INCLUDING SOIL, SURFACE WATER
     OR  GROUND WATER) OR THE ENVIRONMENT, INCLUDING, WITHOUT LIMITATION, CLAIMS
     ARISING  UNDER  ENVIRONMENTAL  LAWS  RESULTING  FROM  OR ARISING OUT OF ANY
     LIABILITY  CAUSED BY OR CONNECTED WITH THE PRESENCE, DISPOSAL OR RELEASE OF
     ANY MATERIAL OF ANY KIND IN, ON OR UNDER THE ASSIGNED INTERESTS ON OR AFTER
     THE  EFFECTIVE  DATE,  WITHOUT REGARD TO ASSIGNORS' (1) NEGLIGENCE, WHETHER
     SUCH  NEGLIGENCE  IS  ACTIVE  OR PASSIVE, JOINT, SOLE OR CONCURRENT, OR (2)
     STRICT  LIABILITY.  THIS  INDEMNIFICATION SHALL BE IN ADDITION TO ANY OTHER
     INDEMNITY  PROVISIONS  CONTAINED  IN  THIS  ASSIGNMENT, AND IT IS EXPRESSLY
     UNDERSTOOD  AND  AGREED THAT ANY TERMS OF THIS PARAGRAPH SHALL CONTROL OVER
     ANY CONFLICTING OR CONTRADICTING TERMS OR PROVISIONS CONTAINED ELSEWHERE IN
     THIS  ASSIGNMENT.

e.   The Assigned  Interests  have been utilized by Assignors for the purpose of
     exploration,  development,  and  production  of  oil  and  gas.  Assignee
     acknowledges  that  there  may  have  been spills of crude oil and produced
     water or other material in the past on the Assigned Interests. In addition,
     some  production  equipment may contain asbestos and/or Naturally Occurring
     Radioactive  Material  (hereinafter referred to as "NORM"). In this regard,
     Assignee  expressly understands that NORM may affix or attach itself to the
     inside  of  the wells, materials and equipment as scale, or in other forms,
     and  that  said  wells,  materials  and  equipment  located on the Assigned
     Interests  may contain NORM and that NORM-containing material may be buried
     or otherwise disposed of on the Assigned Interests. Assignee also expressly
     understands  that  special  procedures  may be required for the removal and
     disposal  of  asbestos  and  NORM from the equipment and Assigned Interests
     where  it  may  be  found  and  that  Assignee  assumes  all  liability for
     assessment,  removal  and  disposal  of  any  such materials and associated
     activities.

<PAGE>

f.   ASSIGNEE  UNDERSTANDS  AND  AGREES THAT THIS TRANSFER IS MADE ON AN "AS IS,
     WHERE IS", AND "WITH ALL FAULTS" BASIS AND ASSIGNEE RELEASES ASSIGNORS FROM
     ANY LIABILITY WITH RESPECT THERETO WHETHER OR NOT CAUSED BY OR ATTRIBUTABLE
     TO  ASSIGNORS'  NEGLIGENCE  EXCEPT  AS  OTHERWISE  EXPRESSLY AGREED UPON IN
     WRITING BY ASSIGNORS OR AS PROVIDED IN THIS PARAGRAPH. WITHOUT LIMITING THE
     ABOVE, AND EXCEPT AS EXPRESSLY PROVIDED IN THIS ASSIGNMENT, ASSIGNEE WAIVES
     ITS  RIGHT  TO  RECOVER  FROM ASSIGNORS AND FOREVER RELEASES AND DISCHARGES
     ASSIGNORS FROM ANY AND ALL DAMAGES, CLAIMS, LOSSES, LIABILITIES, PENALTIES,
     FINES,  LIENS,  JUDGMENTS,  COSTS,  OR  EXPENSES,  WHATSOEVER,  (INCLUDING,
     WITHOUT LIMITATION, ATTORNEY'S FEES AND COSTS), WHETHER DIRECT OR INDIRECT,
     KNOWN  OR  UNKNOWN, FORESEEN OR UNFORESEEN, THAT MAY ARISE ON ACCOUNT OF OR
     IN  ANY  WAY  BE  CONNECTED  WITH  THE  PHYSICAL  CONDITION OF THE ASSIGNED
     INTERESTS  OR  ANY  ENVIRONMENTAL  LAW  OR  REGULATION  APPLICABLE THERETO.

                                      III.
                                      ----

     This  Assignment is made and executed by Assignors and accepted by Assignee
subject  to  a  proportionate  part  of  the terms, conditions, reservations and
exceptions  set  forth  in  the  following:

a.   the terms,  provisions, covenants and royalties set forth in the Leases and
     any pooling, communitization and unitization agreements or orders affecting
     the  Assigned  Interests;

b.   all recorded  overriding  royalty  interests,  restrictions,  exceptions,
     reservations,  burdens,  encumbrances,  conditions, limitations, interests,
     assignments,  instruments,  agreements  and other matters, if any, that may
     burden  or  affect  Assignors'  interest  in  the  Assigned  Interests;

c.   the terms  and  conditions  contained  in  any  Joint  Operating  Agreement
     covering  the  Assigned  Interests;  and

d.   all Federal,  State,  and  local laws and to all orders, rules, regulations
     and  standards  issued  thereunder  by  all  duly  constituted  political
     subdivisions and agencies having jurisdiction, and Assignee hereby warrants
     that it will comply with same. Further, Assignee specifically warrants that
     it  will  comply  with  any  and  all  laws, orders, rules, regulations and
     standards  of  all  Federal,  State  and  local  political subdivisions and
     agencies applicable to (1) all exploration, drilling, production, plugging,
     and  abandonment procedures, and (2) the control, regulation and prevention
     of  pollution,  including,  but  not  limited  to, salt water discharge and
     contamination.

<PAGE>

                                       IV.
                                      ----
ASSIGNEE  ACKNOWLEDGES  THAT  ASSIGNORS  HAVE  NOT  MADE,  AND  ASSIGNORS HEREBY
EXPRESSLY  DISCLAIM  AND  NEGATE: (A) ANY WARRANTY OR REPRESENTATION, EXPRESS OR
IMPLIED,  RELATING TO THE CONDITION OF ANY IMMOVABLE PROPERTY, MOVABLE PROPERTY,
EQUIPMENT, INVENTORY, MACHINERY, FIXTURES AND PERSONAL PROPERTY CONSTITUTING ANY
PART  OF  THE ASSIGNED INTERESTS: (B) ANY AND ALL REPRESENTATIONS AND WARRANTIES
AS TO ALL EQUIPMENT, PERSONAL PROPERTY, AND FIXTURES WHICH ARE SOLD AND CONVEYED
ON  AN  "AS  IS",  "WHERE  IS", AND "WITH ALL FAULTS" BASIS: (C) ANY WARRANTY OR
REPRESENTATION,  WHETHER  EXPRESS,  IMPLIED, STATUTORY OR OTHERWISE, RELATING TO
THE  CONDITION,  QUANTITY, QUALITY, FITNESS FOR A PARTICULAR PURPOSE, CONFORMITY
TO  THE  MODELS OR SAMPLES OF MATERIALS OR MERCHANTABILITY OF ANY EQUIPMENT; (D)
ANY  WARRANTY OF FITNESS FOR ANY PURPOSE: (E) ANY IMPLIED OR EXPRESS WARRANTY OF
FREEDOM  FROM  REDHIBITORY  VICES  OR DEFECTS OR OTHER VICES OR DEFECTS, WHETHER
KNOWN  OR  UNKNOWN: (F) ANY AND ALL IMPLIED WARRANTIES EXISTING UNDER APPLICABLE
LAW  NOW  OR  HEREAFTER IN EFFECT. ASSIGNEE SHALL HAVE INSPECTED, OR WAIVED (AND
UPON  CLOSING SHALL BE DEEMED TO HAVE WAIVED) ITS RIGHT TO INSPECT, THE ASSIGNED
INTERESTS  FOR ALL PURPOSES AND SATISFIED ITSELF AS TO THEIR PHYSICAL CONDITION,
BOTH SURFACE AND SUBSURFACE.  ASSIGNEE IS RELYING SOLELY UPON ITS OWN INSPECTION
OF  THE  ASSIGNED  INTERESTS, AND ASSIGNEE SHALL ACCEPT ALL OF THE SAME IN THEIR
"AS  IS,  WHERE IS", AND "WITH ALL FAULTS" CONDITION. ALSO WITHOUT LIMITATION OF
THE  FOREGOING,  ASSIGNORS MAKE NO WARRANTY OR REPRESENTATION, EXPRESS, IMPLIED,
STATUTORY OR OTHERWISE, AS TO THE ACCURACY OR COMPLETENESS OF ANY DATA, REPORTS,
RECORDS,  PROJECTIONS,  INFORMATION  OR  MATERIALS  NOW, HERETOFORE OR HEREAFTER
FURNISHED  OR  MADE  AVAILABLE  TO  ASSIGNEE  IN CONNECTION WITH THIS ASSIGNMENT
INCLUDING,  WITHOUT  LIMITATION,  RELATIVE  TO PRICING ASSUMPTIONS OR QUALITY OR
QUANTITY OF HYDROCARBON RESERVES (IF ANY) ATTRIBUTABLE TO THE ASSIGNED INTERESTS
OR THE ABILITY OR POTENTIAL OF THE ASSIGNED INTERESTS TO PRODUCE HYDROCARBONS OR
THE  ENVIRONMENTAL  CONDITION  OF  THE  ASSIGNED  INTERESTS OR ANY OTHER MATTERS
CONTAINED  IN THE MATERIALS FURNISHED OR MADE AVAILABLE TO ASSIGNEE BY ASSIGNORS
OR  BY  ASSIGNORS'  AGENTS  OR REPRESENTATIVES.  ANY AND ALL SUCH DATA, RECORDS,
REPORTS,  PROJECTIONS,  INFORMATION  AND  OTHER  MATERIALS  (WRITTEN  OR  ORAL)
FURNISHED  BY  ASSIGNORS  OR  OTHERWISE  MADE AVAILABLE OR DISCLOSED TO ASSIGNEE

<PAGE>

SHALL  NOT  CREATE OR GIVE RISE TO ANY LIABILITY OF OR AGAINST ASSIGNORS AND ANY
RELIANCE  ON  OR USE OF THE SAME SHALL BE AT ASSIGNEE'S SOLE RISK TO THE MAXIMUM
EXTENT  PERMITTED  BY  LAW.

ASSIGNEE  REPRESENTS  AND  WARRANTS  THAT  SUCH  ASSIGNEE  IS AN EXPERIENCED AND
KNOWLEDGEABLE INVESTOR IN OIL AND GAS PROPERTIES, HAS THE FINANCIAL AND BUSINESS
EXPERTISE  TO  EVALUATE THE MERITS AND RISKS OF THE TRANSACTIONS COVERED BY THIS
ASSIGNMENT,  AND  HAS  RELIED  SOLELY  ON  THE  BASIS  OF  ITS  OWN  INDEPENDENT
INVESTIGATION  OF THE ASSIGNED INTERESTS FOR ALL PURPOSES. ASSIGNEE ACKNOWLEDGES
THAT  IT  HAS  HAD  THE  OPPORTUNITY  TO  SEEK  THE  ADVICE OF PERSONS IT DEEMED
APPROPRIATE CONCERNING THE CONSEQUENCES OF THE PROVISIONS OF THIS ASSIGNMENT AND
HEREBY WAIVES ANY AND ALL RIGHTS TO CLAIM THAT IT IS AN UNSOPHISTICATED INVESTOR
IN  OIL  AND  GAS  PROPERTIES.

                                       V.
                                      ---

     It  is the intention and agreement of Assignors and Assignee hereunder that
the  provisions of this Assignment be severable. Should the whole or any portion
of a section or paragraph be judicially held to be void or invalid, such holding
shall not affect other portions which can be given effect without the invalid or
void  portion.

     Assignors  and  Assignee  hereby  agree  that  all  of  the  covenants  and
agreements  contained  herein  shall extend to and be obligatory upon the heirs,
executors, representatives, administrators, successors, and assigns of Assignors
and  Assignee,  and  shall  be  covenants  running  with  the  land.

     TO  HAVE  AND  TO  HOLD  the  same unto the Assignees, their successors and
assigns, according to the terms, covenants and conditions of the Leases and this
Assignment.

     Assignee  joins  in  the execution hereof for the purpose of being bound by
all  of  the  terms,  provisions,  obligations  and  covenants herein specified.

     ASSIGNORS  WILL  ONLY WARRANT AND FOREVER DEFEND THE RIGHT AND TITLE TO THE
ABOVE  DESCRIBED ASSIGNED INTERESTS UNTO THE SAID ASSIGNEE AGAINST THE CLAIMS OF
THOSE  PERSONS  CLAIMING  BY,  THROUGH  OR  UNDER  ASSIGNORS, BUT NOT OTHERWISE.

     ASSIGNEE  ACKNOWLEDGES  THAT  ALL  BOLDED  PROVISIONS  HEREIN  RELATING  TO
INDEMNITY OBLIGATIONS, RELEASES AND WAIVERS ARE CONSPICUOUS, SATISFY THE EXPRESS
NEGLIGENCE  RULE  UNDER  TEXAS  LAW  AND  REPRESENT  A  MATERIAL  BARGAINED  FOR
ALLOCATION  OF  RISK  BETWEEN  ASSIGNORS  AND  ASSIGNEE.

     IN  WITNESS  WHEREOF, this instrument is executed as of the acknowledgement
date  of  each of the parties hereto, but shall be effective as of the Effective
Date  hereof.

<PAGE>

                              ASSIGNORS:

                              J&P  FAMILY  PROPERTIES,  LTD.

                              BY: /s/ Jim Wheeler
                                 ---------------------------------
                              NAME: Jim Wheeler
                                   -------------------------------
                              TITLE: General Partner
                                    ------------------------------

                              LARA  ENERGY,  INC.

                              BY: /s/ John E. Hearn Jr.
                                 ---------------------------------
                              NAME: John E. Hearn Jr.
                                   -------------------------------
                              TITLE: President
                                    ------------------------------

                              ASSIGNEE:

                              GULF  COAST  OIL  CORPORATION

                              BY: /s/ Edward R. DeStefano
                                 --------------------------------
                              NAME: Edward R. DeStefano
                                   ------------------------------
                              TITLE: President
                                    -----------------------------

                               [ACKNOWLEDGEMENTS]

<PAGE>
                                  SCHEDULE 2.09

<PAGE>

                                    EXHIBIT D

                              DISCLOSURE SCHEDULES
                              --------------------

<PAGE>

                                  SCHEDULE 3.02
                                  -------------
                 SELLERS' AUTHORIZATIONS; CONFLICTS AND CONSENTS
                 -----------------------------------------------

1.   Oil, Gas  and  Mineral  Lease dated March 16, 2005, by and between Double K
     Property,  Ltd.,  as  Lessor,  and  Manti  Mustang  Creek, Ltd., as Lessee,
     covering  700  acres,  more  or  less,  situated  in the B. S. & F. Survey,
     Section  61,  A-150,  the  J.  B. Taylor Survey, Section 68, A-637, and the
     B.S.F.  Survey,  Section  59,  A-149 in McMullen County, Texas, recorded by
     Memorandum  Giving Notice of Oil and Gas Lease dated March 16, 2005, by and
     between  Lessor and Lessee, in Volume 435, Page 437, of the Deed Records of
     McMullen  County,  Texas,  ratified  by  Ratification of Oil and Gas Leases
     dated April 20, 2005, by and between James F. Roark, Jr., and Manti Mustang
     Creek,  Ltd.,  recorded  in  Volume  436,  Page  56  of the Deed Records of
     McMullen  County,  Texas.

2.   Oil and  Gas  Lease  dated March 30, 2005, by and between American National
     Insurance  Company,  as  Lessor,  and Manti Mustang Creek, Ltd., as Lessee,
     covering  320  acres,  more  or  less, situated in the Maddox Bros. and the
     Anderson  Survey,  Section 2, A-697, in McMullen County, Texas, recorded by
     Memorandum of Oil and Gas Lease dated April 11, 2005, by and between Lessor
     and Lessee, in Volume 436, Page 07, of the Deed Records of McMullen County,
     Texas.

3.   Oil, Gas  and Mineral Lease dated December 28, 2005, by and between Clifton
     Wheeler,  Jr.,  et al, as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  80  acres, more or less, situated in the Jose A. Hernandez Survey
     962,  A-229 in McMullen County, Texas, recorded by Memorandum Giving Notice
     of  Oil  and  Gas  Lease dated December 28, 2005, by and between Lessor and
     Lessee,  in  Volume  441, Page 286, of the Deed Records of McMullen County,
     Texas.

4.   Oil and  Gas  Lease  dated  March  1,  2006,  by  and  between Devon Energy
     Production  Company,  L.P.,  as  Lessor,  and Manti Mustang Creek, Ltd., as
     Lessee,  covering  160  acres,  more  or  less, situated in the W. H. Stout
     Survey, Section 20, A-1179, in Atascosa County, Texas, recorded as File No.
     80617  of  the  Oil  and  Gas  Lease  Records  of  Atascosa  County, Texas.

5.   Oil and  Gas  Lease dated March 8, 2006, by and between Texas Osage Royalty
     Pool,  Inc.,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering
     160  acres,  more  or less, situated in the W. H. Stout Survey, Section 20,
     A-1179,  in  Atascosa  County, Texas, recorded by Memorandum of Oil and Gas
     Lease  as  File  No.  80616  of  the  Oil and Gas Lease Records of Atascosa
     County,  Texas.

6.   Right of  Way  Agreement  dated  September 30, 2005, by and between Clifton
     Wheeler, Jr., et al, as Grantor, and Manti Mustang Creek, Ltd., as Grantee,
     situated  within  the B. B. B. & C. R. R. Survey, No. 1095, A-80 and the G.
     M. Hernandez Survey, No. 962, A-229, in McMullen County, Texas, recorded in
     Volume  439,  Page  371,  of  the  Deed  Records of McMullen County, Texas.

<PAGE>

                                  SCHEDULE 3.05
                                  -------------
                          LEGAL PROCEEDINGS AND ORDERS
                          ----------------------------

NONE

<PAGE>

                                  SCHEDULE 3.11
                                  -------------
                                    CONSENTS
                                    --------

1.   Oil, Gas  and  Mineral  Lease dated March 16, 2005, by and between Double K
     Property,  Ltd.,  as  Lessor,  and  Manti  Mustang  Creek, Ltd., as Lessee,
     covering  700  acres,  more  or  less,  situated  in the B. S. & F. Survey,
     Section  61,  A-150,  the  J.  B. Taylor Survey, Section 68, A-637, and the
     B.S.F.  Survey,  Section  59,  A-149 in McMullen County, Texas, recorded by
     Memorandum  Giving Notice of Oil and Gas Lease dated March 16, 2005, by and
     between  Lessor and Lessee, in Volume 435, Page 437, of the Deed Records of
     McMullen  County,  Texas,  ratified  by  Ratification of Oil and Gas Leases
     dated April 20, 2005, by and between James F. Roark, Jr., and Manti Mustang
     Creek,  Ltd.,  recorded  in  Volume  436,  Page  56  of the Deed Records of
     McMullen  County,  Texas.

2.   Oil and  Gas  Lease  dated March 30, 2005, by and between American National
     Insurance  Company,  as  Lessor,  and Manti Mustang Creek, Ltd., as Lessee,
     covering  320  acres,  more  or  less, situated in the Maddox Bros. and the
     Anderson  Survey,  Section 2, A-697, in McMullen County, Texas, recorded by
     Memorandum of Oil and Gas Lease dated April 11, 2005, by and between Lessor
     and Lessee, in Volume 436, Page 07, of the Deed Records of McMullen County,
     Texas.

3.   Oil, Gas  and Mineral Lease dated December 28, 2005, by and between Clifton
     Wheeler,  Jr.,  et al, as Lessor, and Manti Mustang Creek, Ltd., as Lessee,
     covering  80  acres, more or less, situated in the Jose A. Hernandez Survey
     962,  A-229 in McMullen County, Texas, recorded by Memorandum Giving Notice
     of  Oil  and  Gas  Lease dated December 28, 2005, by and between Lessor and
     Lessee,  in  Volume  441, Page 286, of the Deed Records of McMullen County,
     Texas.

4.   Oil and  Gas  Lease  dated  March  1,  2006,  by  and  between Devon Energy
     Production  Company,  L.P.,  as  Lessor,  and Manti Mustang Creek, Ltd., as
     Lessee,  covering  160  acres,  more  or  less, situated in the W. H. Stout
     Survey, Section 20, A-1179, in Atascosa County, Texas, recorded as File No.
     80617  of  the  Oil  and  Gas  Lease  Records  of  Atascosa  County, Texas.

5.   Oil and  Gas  Lease dated March 8, 2006, by and between Texas Osage Royalty
     Pool,  Inc.,  as Lessor, and Manti Mustang Creek, Ltd., as Lessee, covering
     160  acres,  more  or less, situated in the W. H. Stout Survey, Section 20,
     A-1179,  in  Atascosa  County, Texas, recorded by Memorandum of Oil and Gas
     Lease  as  File  No.  80616  of  the  Oil and Gas Lease Records of Atascosa
     County,  Texas.

6.   Right of  Way  Agreement  dated  September 30, 2005, by and between Clifton
     Wheeler, Jr., et al, as Grantor, and Manti Mustang Creek, Ltd., as Grantee,
     situated  within  the B. B. B. & C. R. R. Survey, No. 1095, A-80 and the G.
     M. Hernandez Survey, No. 962, A-229, in McMullen County, Texas, recorded in
     Volume  439,  Page  371,  of  the  Deed  Records of McMullen County, Texas.

<PAGE>

                                  SCHEDULE 3.12
                                  -------------
                                 GAS IMBALANCES
                                 --------------

NONE

<PAGE>

                                  SCHEDULE 3.14
                                  -------------
                        NOTICES OF CONTRACT CANCELLATION
                        --------------------------------

NONE
----

<PAGE>

                                  SCHEDULE 5.02
                                  -------------

               ARTICLE 10 SCHEDULE OF LEASES RELEASED OR ASSIGNED

Released

-    Lessor:  Tyler  Ranch  Partners,  LTD
     Lessee:  Manti  Mustang  Creek,  LTD.
     Date:  March  30,  2005
     Recorded:  Memorandum  @  Volume  436  Page  3,  DR  McMullen County, Texas

-    Lessor:  The  Annie  Crain  Trust
     Lessee:  Manti  Mustang  Creek,  LTD
     Date:  March  15,  2005
     Recorded:  Memorandum  @  Volume  435  Page  326, DR McMullen County, Texas

Assigned

-    Lessor:  Tyler  Ranch  Partners,  LTD
     Lessee:  Manti  Mustang  Creek,  LTD
     Date:  March  30,  2005
     Recorded:  Memorandum  @  Volume  436  Page  5,  DR  McMullen County, Texas

<PAGE>

                                  SCHEDULE 2.02
                                  -------------
                          ALLOCATION OF PURCHASE PRICE
                          ----------------------------

ALLOCATION  FOR  MANTI  ACQUISITION

WELL  NAME     %  OF  PDP          PRO-RATA  SHARE  OF  PURCHASE  PRICE
----------     ----------          ------------------------------------
Hodde #1           16.99%               $756,248
Double K #2         7.96%               $354,266
Double K #3         2.68%               $119,408
Kassner #1         13.64%               $607,142
Kassner #2          0.00%                     $0
Swaim-Powers #1     4.98%               $221,798
Peacock #1          0.63%                $28,212
Swaim 58 #1        24.20%             $1,076,752
Canjun Caper #1     2.40%               $106,744
Wheeler #1          5.94%               $264,153
Rabke-Maspero #1   15.76%               $701,343
Tyler Ranch #1      4.81%               $213,933

                  100.00%             $4,450,000

<PAGE>

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