Document:

Exhibit 10.4

THIS  NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY APPLICABLE STATE SECURITIES LAWS.  THIS NOTE MAY NOT BE SOLD, OFFERED FOR
SALE,  PLEDGED  OR  HYPOTHECATED  IN  THE  ABSENCE  OF AN EFFECTIVE REGISTRATION
STATEMENT AS TO THIS NOTE UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAWS OR
AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO GULF COAST OIL CORPORATION THAT
SUCH  REGISTRATION  IS  NOT  REQUIRED.

                              AMENDED AND RESTATED
                              --------------------
                                SECURED TERM NOTE
                                -----------------

     FOR VALUE RECEIVED, GULF COAST OIL CORPORATION, a Delaware corporation (the
"COMPANY"),  promises  to  pay  to  LAURUS  MASTER FUND, LTD., c/o M&C Corporate
Services  Limited,  P.O.  Box  309 GT, Ugland House, South Church Street, George
Town,  Grand  Cayman,  Cayman  Islands,  Fax: 345-949-8080 (the "HOLDER") or its
registered  assigns  or successors in interest, the sum of Forty Million Dollars
($40,000,000),  together with any accrued and unpaid interest hereon, on October
28,  2009  (the  "MATURITY  DATE")  if  not  sooner  paid.

     Capitalized  terms  used  herein without definition shall have the meanings
ascribed to such terms in that certain Securities Purchase Agreement dated as of
the effective date hereof by and between the Company and the Holder (as amended,
modified  and/or  supplemented  from  time  to  time, the "PURCHASE AGREEMENT").

     The  following  terms shall apply to this Amended and Restated Secured Term
Note  (this  "NOTE"):

                                    ARTICLE 1
                         CONTRACT RATE AND AMORTIZATION

     1.1 Contract Rate. Subject to Sections 2.2 and 3.9, interest payable on the
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outstanding  principal amount of this Note (the "PRINCIPAL AMOUNT") shall accrue
at  a  rate  per  annum  equal  to the "PRIME RATE" published in The Wall Street
                                                                 ---------------
Journal  from  time  to  time  (the  "PRIME  RATE"),  plus two percent (2%) (the
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"CONTRACT  RATE"). The Contract Rate shall be increased or decreased as the case
may  be  for  each  increase or decrease in the Prime Rate in an amount equal to
such  increase  or decrease in the Prime Rate; each change to be effective as of
the day of the change in the Prime Rate. The Contract Rate shall not at any time
be  less  than eight percent (8%). Interest shall be (i) calculated on the basis
of  a  360 day year, and (ii) payable monthly, in arrears, commencing on July 1,
2006,  on  the  first business day of each consecutive calendar month thereafter
through  and  including  the Maturity Date, and on the Maturity Date, whether by
acceleration  or  otherwise.

     1.2  Payments.  Amortizing  payments  of  the  aggregate  principal  amount
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outstanding  under  this Note at any time (the "PRINCIPAL AMOUNT") shall be made
by  the Company on July 1, 2006 and on the first business day of each succeeding
month thereafter through and including the Maturity Date (each, an "AMORTIZATION
DATE").  So  long  as  no  Event  of  Default  shall  have  occurred and then be
continuing,  interest  hereunder  shall  only  be  payable as a component of the

<PAGE>

Amortization  Amount (as hereafter defined) in accordance with the terms of this
Section  1.2. Subject to Article III below, commencing on the first Amortization
Date,  the  Company shall make monthly payments of principal and interest to the
Holder  on  each  Amortization  Date  equal to the Amortization Amount. All such
payments shall be applied by the Holder (a) first to any fees and expenses owing
by  the  Company  to  the  Holder  pursuant  to (i) this Note, (ii) the Purchase
Agreement  and (iii) any other Related Agreement, (b) then to accrued and unpaid
interest due on this Note and (c) then to the outstanding Principal Amount under
this  Note.  In  the event the Amortization Amount (as hereafter defined) during
any month is less than $150,000, then the Company shall nevertheless be required
to  make a monthly payment to the Holder during such month in an amount equal to
the  difference  between  $150,000  and the then applicable Amortization Amount,
which  such  payment  shall  be  applied  by  the  Holder  to accrued and unpaid
interest,  fees  and  expenses  owing by the Company to the Holder in accordance
with  subsections  (a)  and (b) of the immediately preceding sentence; provided,
                                                                       --------
however,  during  such  time  as  an Event of Default shall have occurred and be
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continuing,  the Company shall make interest payments hereunder to the Holder in
accordance  with  Sections  1.1  and  2.2  of  this  Note  without regard to any
reduction in such cash interest payment which may otherwise have been applicable
under  this  Section  1.2  had  no  Event of Default then been in existence. Any
outstanding  Principal  Amount together with any accrued and unpaid interest and
any  and  all  other  unpaid  amounts which are then owing by the Company to the
Holder  under  this  Note,  the  Purchase  Agreement  and/or  any  other Related
Agreement  shall  be  due and payable on the Maturity Date. For purposes of this
Section,  (a)  the  term "AMORTIZATION AMOUNT" shall mean an amount equal to the
product  of  (i)  seven-eighths  (.875)  times  (ii)  eighty  percent (80%) (the
"APPLICABLE  PERCENTAGE")  of  the  Net  Revenue  relating  to  all  oil and gas
properties  of  the Company (collectively, the "OIL AND GAS PROPERTIES") for the
calendar  month  immediately preceding the Amortization Date; provided, however,
                                                              --------  -------
the  Applicable Percentage shall increase to one hundred percent (100%) upon the
occurrence  and  during  the  continuance  of  an  Event of Default and (b) "NET
REVENUE"  shall  mean  the gross proceeds paid to the Company in respect of oil,
gas  and/or  other  hydrocarbon  production in which the Company has an interest
whether  or  not  such  proceeds  are remitted to the lockbox account and/or any
other  blocked  account  established  by  the  Company  in  connection  with the
transactions  contemplated  hereby  net  of,  in  each case, with respect to the
period for which such Net Revenue relates (i) the reasonable ordinary day to day
expenses  associated  with  the  Company's  operation  of  the leases, wells and
equipment,  including  fuel,  materials,  labor, maintenance, routine production
equipment  replacement,  repairs,  routine workover costs to maintain production
from  an  existing completed well, royalty, severance tax and ad valorem tax, in
each  case  using  accounting practices and procedures ordinary and customary in
the oil and gas industry (the "Lease Operating Expenses") and (ii) the Company's
reasonable  estimate of its federal tax (including federal income tax) liability
(after  taking  into  account  all applicable deductions, depletion and credits)
(the  "Estimated Taxes"), all of which, in the case of the foregoing clauses (i)
and  (ii),  shall be subject to the Holder's approval which shall be provided in
the  exercise  of  the  Holder's  reasonable discretion based on such supporting
documentation  from  the  Company  as  the  Holder  shall  request.

<PAGE>

                                    ARTICLE 2
                                EVENTS OF DEFAULT

     2.1  Events  of  Default. The occurrence of any of the following events set
          -------------------
forth  in  this  Section  4.1  shall  constitute  an event of default ("EVENT OF
DEFAULT")  hereunder:

          (a)  Failure to Pay. The Company fails to pay when due any installment
               --------------
     of  principal, interest or other fees hereon in accordance herewith, or the
     Company  fails to pay any of the other Obligations (under and as defined in
     the  Master  Security  Agreement)  when  due,  and,  in any such case, such
     failure  shall  continue  for a period of three (3) days following the date
     upon  which  any  such  payment  was  due.

          (b)  Breach  of  Covenant.  The  Company  or  any  of its Subsidiaries
               --------------------
     breaches  any  covenant  or any other term or condition of this Note in any
     material  respect  and  such  breach,  if  subject to cure, continues for a
     period  of  fifteen  (15)  days  after  the  occurrence  thereof.

          (c)  Breach  of  Representations  and  Warranties. Any representation,
               --------------------------------------------
     warranty  or  statement  made or furnished by New Century Energy Corp. (the
     "Parent"),  the  Company,  any of its Subsidiaries or any guarantor (each a
     "Guarantor") issuing to the Holder a guaranty agreement (each a "Guaranty")
     in  connection  with  the transaction contemplated hereby in this Note, the
     Purchase  Agreement  or  any  other  Related Agreement shall at any time be
     false or misleading in any material respect on the date as of which made or
     deemed  made.

          (d)  Default Under Other Agreements. The occurrence of any default (or
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     similar  term)  in  the observance or performance of any other agreement or
     condition  relating  to  any indebtedness or contingent obligation, in each
     case  in  an aggregate amount of not less than $100,000, of the Parent, the
     Company or any of its Subsidiaries beyond the period of grace (if any), the
     effect  of  which  default  is to cause, or permit the holder or holders of
     such  indebtedness  or  beneficiary  or  beneficiaries  of  such contingent
     obligation  to  cause,  such indebtedness to become due prior to its stated
     maturity  or  such  contingent  obligation  to  become  payable;

          (e) Material Adverse Effect. Any change or the occurrence of any event
              -----------------------
     which  could  reasonably  be  expected  to  have a Material Adverse Effect;

          (f)  Bankruptcy.  The  Parent, the Company, any of its Subsidiaries or
               ----------
     any  Guarantor  shall  (i)  apply  for,  consent  to or suffer to exist the
     appointment  of,  or  the  taking  of possession by, a receiver, custodian,
     trustee  or  liquidator  of  itself  or of all or a substantial part of its
     property,  (ii)  make  a  general  assignment for the benefit of creditors,
     (iii)  commence  a voluntary case under the federal bankruptcy laws (as now
     or  hereafter  in effect), (iv) be adjudicated a bankrupt or insolvent, (v)
     file  a  petition  seeking to take advantage of any other law providing for
     the relief of debtors, (vi) acquiesce to, without challenge within ten (10)
     days  of  the  filing  thereof, or failure to have dismissed, within thirty
     (30) days, any petition filed against it in any involuntary case under such
     bankruptcy  laws, or (vii) take any action for the purpose of effecting any
     of  the  foregoing;

<PAGE>

          (g)  Judgments.  Attachments  or  levies  in excess of $100,000 in the
               ---------
     aggregate are made upon the Parent, the Company, or its Subsidiary's or any
     Guarantor's  assets or a judgment is rendered against the Company's, any of
     its  Subsidiary's or any Guarantor's property involving a liability of more
     than  $100,000  which  shall  not  have been vacated, discharged, stayed or
     bonded  within  thirty  (30)  days  from  the  entry  thereof;

          (h) Insolvency. The Parent or the Company or any Guarantor shall admit
              ----------
     in  writing its inability, or be generally unable, to pay its debts as they
     become  due  or  cease  operations  of  its  present  business;

          (i)  Change  of  Control. A Change of Control (as defined below) shall
               -------------------
     occur  with  respect  to  the  Company,  unless Holder shall have expressly
     consented to such Change of Control in writing. A "CHANGE OF CONTROL" shall
     mean  any  event  or  circumstance as a result of which (i) any "PERSON" or
     "GROUP"  (as  such  terms  are  defined  in Sections 13(d) and 14(d) of the
     Exchange  Act,  as in effect on the date hereof), other than the Holder, is
     or  becomes the "BENEFICIAL OWNER" (as defined in Rules 13(d)-3 and 13(d)-5
     under  the Exchange Act), directly or indirectly, of 35% or more on a fully
     diluted basis of the then outstanding voting equity interest of the Company
     (other  than  a  "PERSON"  or "GROUP" that beneficially owns 35% or more of
     such  outstanding  voting  equity  interests  of  the  Company  on the date
     hereof), (ii) unless the Holder provides its written consent thereto (which
     shall  not be unreasonably withheld), the Board of Directors of the Company
     shall cease to consist of a majority of the Company's board of directors on
     the  date  hereof  (or  directors  appointed  by a majority of the board of
     directors  in  effect  immediately  prior to such appointment) or (iii) the
     Company  or  any  of its Subsidiaries merges or consolidates with, or sells
     all  or  substantially  all  of  its assets to, any other person or entity;

          (j)  Indictment;  Proceedings. The indictment or threatened indictment
               ------------------------
     of the Parent, the Company, any of its Subsidiaries or any Guarantor or any
     executive  officer  of  the  Parent, the Company or any of its Subsidiaries
     under  any  criminal statute, or commencement or threatened commencement of
     criminal  or  civil  proceeding against the Parent, the Company, any of its
     Subsidiaries  or  any Guarantor or any executive officer of the Parent, the
     Company, any of its Subsidiaries or any Guarantor pursuant to which statute
     or  proceeding penalties or remedies sought or available include forfeiture
     of  any  of  the  property  of  the Company, any of its Subsidiaries or any
     Guarantor;  or

          (k) Cross-Defaults and Challenges to Validity. (i) An Event of Default
              -----------------------------------------
     shall  occur  under  and  as defined in the Purchase Agreement or any other
     Related  Agreement  (including,  without  limitation,  the  breach  by  any
     Guarantor  of any provision of any Guaranty), (ii) the Parent, the Company,
     any of its Subsidiaries or any Guarantor shall breach any term or provision
     of  the  Purchase  Agreement or any other Related Agreement in any material
     respect  and  such  breach,  if capable of cure, continues unremedied for a
     period of fifteen (15) days after the occurrence thereof, (iii) the Parent,
     the  Company,  any  of  its  Subsidiaries  or  any  Guarantor  attempts  to
     terminate, challenges the validity of, or its liability under, the Purchase
     Agreement or any Related Agreement, (iv) any proceeding shall be brought to
     challenge  the  validity,  binding  effect of the Purchase Agreement or any
     Related  Agreement,  (v)  the  Purchase  Agreement or any Related Agreement
     ceases to be a valid, binding and enforceable obligation of the Parent, the
     Company,  any  of  its  Subsidiaries  or  any Guarantor (to the extent such

<PAGE>

     persons  or entities are a party thereto) or (vi) an Event of Default shall
     occur  under  and as defined in any one or more of the following documents:
     (A)  the  Securities  Purchase  Agreement  dated as of June 30, 2005 by and
     between  the  Parent  and  the  Holder  (the "June 2005 Securities Purchase
     Agreement"),  (B)  each  Related  Agreement  referred  to  in the June 2005
     Securities  Purchase Agreement, (C) the Securities Purchase Agreement dated
     as  of  September  19,  2005  by and between the Parent and the Holder (the
     "September  2005  Purchase Agreement"), (D) each Related Agreement referred
     to  in  the  September 2005 Purchase Agreement, (E) the Securities Purchase
     Agreement  dated  as  of  June  30, 2006 by and between the Company and the
     Holder  (the "June 2006 Purchase Agreement") and (F) each Related Agreement
     referred  to  in  the June 2006 Purchase Agreement, as each may be amended,
     restated  modified  and/or  supplemented  from  time  to  time.

     2.2  Default  Interest. Following the occurrence and during the continuance
          -----------------
of  an  Event of Default, the Company shall pay additional interest on this Note
in  an  amount  equal  to  two  percent  (2%)  per  month,  and  all outstanding
obligations  under  this  Note,  the  Purchase  Agreement and each other Related
Agreement,  including unpaid interest, shall continue to accrue interest at such
additional  interest  rate from the date of such Event of Default until the date
such  Event  of  Default  is  cured  or  waived.

     2.3 Default Payment. Following the occurrence and during the continuance of
         ---------------
an  Event of Default, the Holder, at its option, may demand repayment in full of
all  obligations and liabilities owing by Company to the Holder under this Note,
the  Purchase  Agreement and/or any other Related Agreement and/or may elect, in
addition  to  all rights and remedies of the Holder under the Purchase Agreement
and  the  other  Related  Agreements  and all obligations and liabilities of the
Company  under  the  Purchase  Agreement  and  the  other Related Agreements, to
require  the  Company to make a Default Payment ("DEFAULT PAYMENT"). The Default
Payment  shall  be  130%  of  the outstanding principal amount of the Note, plus
accrued but unpaid interest, all other fees then remaining unpaid, and all other
amounts  payable  hereunder.  The  Default Payment shall be applied first to any
fees  due  and  payable  to  the  Holder  pursuant  to  this  Note, the Purchase
Agreement,  and/or  the  other  Related  Agreements,  then to accrued and unpaid
interest  due on this Note and then to the outstanding principal balance of this
Note.  The Default Payment shall be due and payable immediately on the date that
the  Holder  has  exercised  its  rights  pursuant  to  this  Section  2.3.

                                    ARTICLE 3
                                  MISCELLANEOUS

     3.1  Cumulative Remedies. The remedies under this Note shall be cumulative.
          -------------------

     3.2  Failure  or  Indulgence Not Waiver. No failure or delay on the part of
          ----------------------------------
the  Holder  hereof  in  the exercise of any power, right or privilege hereunder
shall  operate  as a waiver thereof, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof or
of  any  other  right,  power  or  privilege.  All  rights and remedies existing
hereunder  are  cumulative  to,  and  not  exclusive  of, any rights or remedies
otherwise  available.

<PAGE>

     3.3  Notices.  Any notice herein required or permitted to be given shall be
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in  writing and shall be deemed effectively given: (a) upon personal delivery to
the party notified, (b) when sent by confirmed telex or facsimile if sent during
normal  business  hours of the recipient, if not, then on the next business day,
(c)  five  days  after  having been sent by registered or certified mail, return
receipt  requested,  postage  prepaid,  or  (d)  one  day  after  deposit with a
nationally  recognized  overnight  courier,  specifying  next day delivery, with
written verification of receipt. All communications shall be sent to the Company
at  the  address  provided  in  the  Purchase  Agreement  executed in connection
herewith,  and  to  the Holder at the address provided in the Purchase Agreement
for  such  Holder,  with  a copy to John E. Tucker, Esq., 825 Third Avenue, 14th
Floor,  New  York,  New  York 10022, facsimile number (212) 541-4434, or at such
other  address  as  the  Company or the Holder may designate by ten days advance
written  notice  to  the  other  parties hereto. A Notice of Conversion shall be
deemed  given  when  made  to  the  Company  pursuant to the Purchase Agreement.

     3.4  Amendment  Provision.  The  term "NOTE" and all references thereto, as
          --------------------
used  throughout  this  instrument,  shall  mean  this  instrument as originally
executed,  or  if  later  amended  or  supplemented,  then  as  so  amended  or
supplemented,  and  any successor instrument as such successor instrument may be
amended  or  supplemented.

     3.5  Assignability.  This  Note  shall  be binding upon the Company and its
          -------------
successors  and  assigns,  and  shall inure to the benefit of the Holder and its
successors and assigns, and may be assigned by the Holder in accordance with the
requirements  of  the  Purchase Agreement. The Company may not assign any of its
obligations under this Note without the prior written consent of the Holder, any
such  purported  assignment  without  such  consent  being  null  and  void.

     3.6  Cost  of  Collection. In case of any Event of Default under this Note,
          --------------------
the  Company  shall  pay  the  Holder  reasonable costs of collection, including
reasonable  attorneys'  fees.

     3.7  Governing  Law,  Jurisdiction  and  Waiver  of  Jury  Trial.
          -----------------------------------------------------------

          (a)  THIS  NOTE  SHALL  BE  GOVERNED  BY AND CONSTRUED AND ENFORCED IN
     ACCORDANCE  WITH  THE  LAWS  OF  THE  STATE  OF NEW YORK, WITHOUT REGARD TO
     PRINCIPLES  OF  CONFLICTS  OF  LAW.

          (b)  THE  COMPANY HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL
     COURTS  LOCATED  IN  THE  COUNTY  OF NEW YORK, STATE OF NEW YORK SHALL HAVE
     EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN
     THE COMPANY, ON THE ONE HAND, AND THE HOLDER, ON THE OTHER HAND, PERTAINING
     TO  THIS  NOTE  OR  ANY  OF  THE  OTHER RELATED AGREEMENTS OR TO ANY MATTER
     ARISING  OUT  OF  OR RELATED TO THIS NOTE OR ANY OF THE RELATED AGREEMENTS;
     PROVIDED,  THAT THE COMPANY ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS
     --------
     MAY  HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK,
     STATE OF NEW YORK; AND FURTHER PROVIDED, THAT NOTHING IN THIS NOTE SHALL BE
                            ------- --------
     DEEMED OR OPERATE TO PRECLUDE THE HOLDER FROM BRINGING SUIT OR TAKING OTHER
     LEGAL  ACTION  IN  ANY  OTHER  JURISDICTION  TO COLLECT THE OBLIGATIONS, TO
     REALIZE  ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO
     ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE HOLDER. THE COMPANY
     EXPRESSLY  SUBMITS  AND  CONSENTS  IN  ADVANCE  TO SUCH JURISDICTION IN ANY
     ACTION  OR  SUIT COMMENCED IN ANY SUCH COURT, AND THE COMPANY HEREBY WAIVES
     ANY  OBJECTION  WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION,
     IMPROPER  VENUE OR FORUM NON CONVENIENS. THE COMPANY HEREBY WAIVES PERSONAL
                        --------------------
     SERVICE  OF  THE  SUMMONS,  COMPLAINT  AND OTHER PROCESS ISSUED IN ANY SUCH
     ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER
     PROCESS  MAY  BE  MADE  BY  REGISTERED  OR  CERTIFIED MAIL ADDRESSED TO THE
     COMPANY AT THE ADDRESS SET FORTH IN THE PURCHASE AGREEMENT AND THAT SERVICE
     SO  MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF THE COMPANY'S ACTUAL
     RECEIPT  THEREOF  OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER
     POSTAGE  PREPAID.

          (c)  THE  COMPANY  DESIRES  THAT  ITS  DISPUTES BE RESOLVED BY A JUDGE
     APPLYING  SUCH  APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION
     OF  THE  BENEFITS  OF  THE  JUDICIAL SYSTEM AND OF ARBITRATION, THE COMPANY
     HERETO  WAIVES  ALL  RIGHTS  TO  TRIAL  BY  JURY  IN  ANY  ACTION, SUIT, OR
     PROCEEDING  BROUGHT  TO  RESOLVE  ANY DISPUTE, WHETHER ARISING IN CONTRACT,
     TORT,  OR  OTHERWISE  BETWEEN  THE  HOLDER  AND THE COMPANY ARISING OUT OF,
     CONNECTED  WITH,  RELATED  OR  INCIDENTAL  TO  THE RELATIONSHIP ESTABLISHED
     BETWEEN  THEM  IN CONNECTION WITH THIS NOTE, ANY OTHER RELATED AGREEMENT OR
     THE  TRANSACTIONS  RELATED  HERETO  OR  THERETO.

     3.8  Severability.  In the event that any provision of this Note is invalid
          ------------
or  unenforceable  under  any  applicable  statute  or  rule  of  law, then such
provision  shall  be  deemed  inoperative  to  the  extent  that it may conflict
therewith  and  shall be deemed modified to conform with such statute or rule of
law.  Any  such provision which may prove invalid or unenforceable under any law
shall  not  affect the validity or enforceability of any other provision of this
Note.

     3.9 Maximum Payments. Nothing contained herein shall be deemed to establish
         ----------------
or  require  the payment of a rate of interest or other charges in excess of the
maximum  permitted  by  applicable  law.  In the event that the rate of interest
required to be paid or other charges hereunder exceed the maximum rate permitted
by  such  law,  any  payments  in  excess of such maximum rate shall be credited
against  amounts  owed  by  the  Company  to the Holder and thus refunded to the
Company.

     3.10  Security  Interest,  Guarantee  and  Mortgages.  The  Holder has been
           ----------------------------------------------
granted  a security interest (i) in certain assets of the Company and the Parent
as  more  fully  described  in  the  Master  Security  Agreement dated as of the
effective  date  hereof  and  reaffirmed by the Company in the Reaffirmation and
Ratification  Agreement  dated as of June 30, 2006, (ii) in the equity interests
of  the Parent in the Company pursuant to the Stock Pledge Agreement dated as of
the  effective date hereof and reaffirmed by the Parent in the Reaffirmation and
Ratification  Agreement  dated  as  of  June 30, 2006 (the "Parent Reaffirmation
Agreement"),  (iii) in the oil and gas properties of the Company pursuant to the

<PAGE>

Amended  and  Restated  Mortgage,  Deed  of Trust, Security Agreement, Financing
Statement and Assignment of Production dated as of June 30, 2006 and (iv) in the
oil  and  gas  properties  of  the  Parent  pursuant  to an Amended and Restated
Mortgage,  Deed of Trust, Security Agreement, Financing Statement and Assignment
of  Production  dated  as of April 26, 2006 and reaffirmed by the Parent and its
Subsidiaries  in  the  Parent  Reaffirmation  Agreement.  The obligations of the
Company  under  this  Note are guaranteed by the Parent pursuant to the Guaranty
dated  as  of  the  effective  date  hereof and reaffirmed by the Parent and its
Subsidiaries  in  the  Parent  Reaffirmation  Agreement.

     3.11  Construction.  Each  party  acknowledges  that  its  legal  counsel
           ------------
participated in the preparation of this Note and, therefore, stipulates that the
rule  of  construction  that ambiguities are to be resolved against the drafting
party shall not be applied in the interpretation of this Note to favor any party
against  the  other.

     3.12  Registered  Obligation.  This  Note  is  intended  to be a registered
           ----------------------
obligation  within  the meaning of Treasury Regulation Section 1.871-14(c)(1)(i)
and  the  Company  (or its agent) shall register this Note (and thereafter shall
maintain  such  registration)  as  to  both  principal  and any stated interest.
Notwithstanding  any  document, instrument or agreement relating to this Note to
the  contrary,  transfer of this Note (or the right to any payments of principal
or  stated  interest  thereunder)  may only be effected by (i) surrender of this
Note  and either the reissuance by the Company of this Note to the new holder or
the  issuance  by  the  Company  of  a new instrument to the new holder, or (ii)
transfer  through  a book entry system maintained by the Company (or its agent),
within  the  meaning  of  Treasury  Regulation  Section  1.871-14(c)(1)(i)(B).

     3.13  Amendment  and  Restatement.  This  Note  amends  and restates in its
           ---------------------------
entirety  (and  is  given  in  substitution for but not in satisfaction of) that
certain  Secured Term Note dated as of April 28, 2006 executed by the Company in
favor  of the Holder in the original principal amount of $40,000,000 (the "PRIOR
NOTE").  This  Note  does  not effect a refinancing of all or any portion of the
Obligations  heretofore  evidenced  by the Prior Note, it being the intention of
the Company and the Holder to avoid effectuating a novation of such Obligations.
The  Holder  and  the  Company confirm that the outstanding principal balance of
this  Note  as  of  June  30,  2006  is  $39,164,144.

       [Balance of page intentionally left blank; signature page follows]

<PAGE>

     IN  WITNESS  WHEREOF,  the  Company  has  caused  this Amended and Restated
Secured  Term  Note  to  be  signed in its name effective as of this 28th day of
April  2006.

                                GULF  COAST  OIL  CORPORATION

                                By: /s/ Edward R. DeStefano
                                   ------------------------------
                                   Name: Edward R. DeStefano
                                   Title: President & CEO

WITNESS:

/s/ Kimberly Newman
----------------------------

<PAGE>Exhibit 10.5

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

     THIS  AMENDED  AND  RESTATED  MORTGAGE,  DEED OF TRUST, SECURITY AGREEMENT,
FINANCING  STATEMENT AND ASSIGNMENT OF PRODUCTION (this "Mortgage") is from GULF
COAST  OIL  CORPORATION,  a  Delaware  corporation  ("Gulf  Coast" and sometimes
"Mortgagor"),  to  EUGENE  GRIN,  825 Third Avenue, New York, New York 10022, as
Trustee  ("Trustee")  for  the  benefit  of  LAURUS  MASTER FUND, LTD., a Cayman
Islands  company  ("Mortgagee"),  dated  as  of  June  30,  2006.

                                    RECITALS

     WHEREAS,  Mortgagor  entered  into  a  Mortgage,  Deed  of  Trust, Security
Agreement,  Financing  Statement  and Assignment of Production with an effective
date  of  April  26,  2006  in favor of Mortgagee (the "Original Mortgage"); and

     WHEREAS,  pursuant to the terms of a Securities Purchase Agreement dated on
or about the date hereof between Gulf Coast and Mortgagee (as amended, restated,
modified  and/or  supplemented  from  time to time, the "June 2006 SPA") and the
Related  Agreements  defined  therein  (as  amended,  restated,  modified and/or
supplemented  from  time to time, the "June 2006 Related Agreements"), Mortgagor
is  required to execute and deliver this Mortgage pursuant to which, among other
things,  the  Mortgaged  Property  (defined  below)  is  granted and assigned by
Mortgagor  to  Mortgagee  to  further  secure  the Secured Indebtedness (defined
below).

     NOW,  THEREFORE,  in  consideration of the sum of $10.00 and other good and
valuable  consideration,  in hand paid by Mortgagee, the receipt and adequacy of
which  are  hereby  acknowledged  and  confessed  by Mortgagor, Mortgagor hereby
agrees  as  follows:

                                    ARTICLE I
                                   DEFINITIONS

     1.1.  Certain  Defined Terms. For all purposes of this Mortgage, unless the
           ----------------------
context  otherwise  requires:

     "Accounts  and Contract Rights" shall mean all accounts (including accounts
in  the  form of joint interest billings under applicable operating agreements),
contract  rights and general intangibles of Mortgagor now or hereafter existing,
or  hereafter acquired by, or on behalf of, Mortgagor, or Mortgagor's successors
in  interest,  relating  to  or  arising  from  the  ownership,  operation  and
development  of  the  Mortgaged  Property  and  to  the  production, processing,
treating,  sale,  purchase,  exchange or transportation of Hydrocarbons (defined
below) produced or to be produced from or attributable to the Mortgaged Property
or any units or pooled interest units in which all or a portion of the Mortgaged
Property  forms  a  part,  together  with  all accounts and proceeds accruing to
Mortgagor  attributable  to the sale of Hydrocarbons produced from the Mortgaged
Property  or any units or pooled interest units in which all or a portion of the
Mortgaged  Property  forms  a  part.

<PAGE>

     "April  2006  Note"  shall  mean that certain Secured Term Note dated as of
April  28,  2006  made  by  Gulf  Coast  in  favor  of Mortgagee in the original
principal  amount  of  $40,000,000,  as  reaffirmed, amended, restated, modified
and/or  supplemented  from  time  to  time.

     "April  2006  Related  Agreements" shall have the meaning given to the term
"Related  Agreements"  in  the April 2006 SPA, as reaffirmed, amended, restated,
modified  and/or  supplemented  from  time  to  time.

     "April  2006  SPA" shall mean the Securities Purchase Agreement dated as of
April  28,  2006  between  Gulf  Coast  and  Mortgagee,  as reaffirmed, amended,
restated,  modified  and/or  supplemented  from  time  to  time.

     "Article"  shall  mean  and  refer  to  an Article of this Mortgage, unless
specifically  indicated  otherwise.

     "Code"  shall  mean  the  Uniform  Commercial Code in effect in each of the
jurisdictions  where  the  Mortgaged  Property or a portion thereof is situated.

     "Credit Agreements" shall mean, collectively, the April 2006 SPA, the April
2006  Related Agreements, the June 2006 SPA and the June 2006 Related Agreements
and  "Credit  Agreement"  shall  mean  any  one  of  the  foregoing.

     "Event  of Default" shall mean the occurrence of any breach by Mortgagor of
any term or provision of this Mortgage or the occurrence of any Event of Default
under  and  as  defined  in  the  applicable  Credit  Agreement.

     "Exhibit  A" shall mean, unless specifically indicated otherwise, Exhibit A
attached  hereto  and  incorporated  herein  by  reference  for  all  purposes.

     "Gas  Balancing  Agreement"  means  any  agreement  or  arrangement whereby
Mortgagor,  or  any  other  party  having  an interest in any Hydrocarbons to be
produced  from  mineral  interests  in  which Mortgagor owns an interest, have a
right  or  an  obligation  to  take more or less than its proportionate share of
production  therefrom.

     "Guaranties"  shall mean, collectively, each Guaranty made by any Mortgagor
in  favor  of  Mortgagee  pursuant to which such Mortgagor guaranteed all debts,
liabilities  and  obligations  of  New Century Energy Corp. to Mortgagee, as the
same  may  be  reaffirmed,  amended, restated, modified and/or supplemented from
time  to  time.

     "Guaranty  Agreements" shall mean, collectively, the Guaranties and all the
other documents, instruments and agreements executed in connection therewith, as
each  of  the  same  may  be  reaffirmed,  amended,  restated,  modified  and/or
supplemented  from  time  to  time.

     "Guaranty  Obligations" shall mean all present and future indebtednesses of
each  Mortgagor  arising  pursuant  to  any  Guaranty  Agreement.

     "Hydrocarbons"  shall  mean  oil, gas, coalbed methane gas, casinghead gas,
drip  gasolines,  natural  gasoline,  condensate,  distillate,  as-extracted
collateral  and  all  other  liquid  or  gaseous  hydrocarbons produced or to be

<PAGE>

produced  in  conjunction  therewith, and all products, byproducts and all other
substances  derived  therefrom or the processing thereof, and all other minerals
and  substances, including, but not limited to, sulphur, lignite, coal, uranium,
thorium,  iron,  geothermal steam, water, carbon dioxide, helium and any and all
other  minerals,  ores,  or  substances  of  value and the products and proceeds
therefrom,  including,  without  limitation,  all gas resulting from the in-situ
combustion  of  coal  or  lignite.

     "June  2006  Note"  shall  mean  that certain Secured Term Note dated on or
about  the  date hereof made by Gulf Coast in favor of Mortgagee in the original
principal  amount  of  $5,000,000,  as  amended,  restated,  modified  and/or
supplemented  from  time  to  time.

     "June  2006  Related  Agreements"  shall  have the meaning set forth in the
recitals  hereto.

     "June  2006  SPA"  shall have the meaning set forth in the recitals hereto.

     "Lands"  shall  mean  the  lands  described in Exhibit A, shall include any
lands  the  description  of  which  is incorporated in Exhibit A by reference to
another  instrument  or  document,  including,  without  limitation,  all  lands
described  in  the Oil and Gas Leases listed on Exhibit A hereto, and shall also
include  any  lands  now  or  hereafter  unitized,  pooled,  spaced or otherwise
combined,  whether  by statute, order, agreement, declaration or otherwise, with
lands  the  description of which is contained in Exhibit A or is incorporated in
Exhibit  A  by  reference.

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

     "Loans"  shall  mean collectively, all amounts advanced by the Mortgagee to
Mortgagor  under  the  Notes  and  the  Credit  Agreements.

     "Material  Adverse  Effect" shall mean a material adverse effect on (a) the
assets,  liabilities, financial condition, results of operations or prospects of
Mortgagor, (b) the right or ability of Mortgagor to fully, completely and timely
perform  their  obligations  under the Credit Agreements, or (c) the validity or
enforceability  of  any  Credit  Agreement  against  Mortgagor, or the rights or
remedies  of  Mortgagee  thereunder.

     "Mortgaged  Property"  shall  have  the meaning stated in Article 2 of this
Mortgage.

     "Net  Revenue  Interest"  shall  mean Mortgagor's share of all Hydrocarbons
produced  from  the Lands, after deducting the appropriate proportionate part of
all  lessors'  royalties,  overriding  royalties,  production payments and other
payments  out of or measured by production which burden Mortgagor's share of all
such  production, subject to non-consent provisions contained in joint operating
agreements.

     "Notes"  shall  mean  collectively,  the  April 2006 Note and the June 2006
Note.

     "Obligations"  shall  mean all present and future indebtedness, obligations
and  liabilities  (including, without limitation, all Guaranty Obligations), and
all  renewals,  refinancings  and  extensions  thereof,  or any part thereof, of
Mortgagor  to  Mortgagee  arising  pursuant  to any of the Credit Agreements, or
arising  pursuant  to  any  commodity,  interest  rate,  currency or other swap,

<PAGE>

option,  collar,  futures  contract or other contract pursuant to which a Person
hedges  risks  related  to  commodity  prices, interest rates, currency exchange
rates,  securities prices or financial market conditions and any other commodity
price hedging agreements by and between Mortgagor and Mortgagee and all interest
accrued  on any of the foregoing, and reasonable costs, expenses, and attorneys'
fees  incurred  in  the enforcement or collection thereof, regardless of whether
such  indebtedness,  obligations  and  liabilities  are direct, indirect, fixed,
contingent,  liquidated,  unliquidated,  joint,  several  or  joint and several.

     "Oil  and  Gas  Leases" shall mean oil, gas and mineral leases, oil and gas
leases, oil leases, gas leases, other mineral leases, subleases, top leases, any
rights  resulting  in  an  ownership  interest in Hydrocarbons and all operating
rights  relating  to  any  of  the foregoing (whether operated by virtue of such
leases,  or  assignments  or  applicable  operating  agreements)  and  all other
interests pertaining to any of the foregoing, including, without limitation, all
royalty  and  overriding  royalty  interests, production payments and net profit
interests,  mineral  fee interests, and all reversionary, remainder, carried and
contingent  interests  relating  to  any  of  the foregoing and all other rights
therein  which are described and/or to which reference may be made on Exhibit A.

     "Operating Equipment" shall mean all Personal Property and fixtures affixed
or  situated  upon all or any part of the Mortgaged Property, including, without
limitation,  all surface or subsurface machinery, equipment, facilities or other
property  of  whatsoever  kind  or nature now or hereafter located on any of the
Lands  which are useful for the production, treatment, storage or transportation
of  oil  or  gas,  including,  but  not by way of limitation, all oil wells, gas
wells,  water  wells,  injection  wells, casing, tubing, rods, pumping units and
engines,  Christmas trees, derricks, separators, gun barrels, flow lines, tanks,
gas  systems  (for  gathering,  treating  and  compression),  water systems (for
treating,  disposal  and  injection),  power plants, poles, lines, transformers,
starters  and  controllers,  machine  shops,  tools, storage yards and equipment
stored  therein,  buildings  and  camps,  telegraph,  telephone  and  other
communication  systems,  roads,  loading  racks  and  shipping  facilities.

     "Original  Mortgage"  shall  have  the  meaning  set  forth in the recitals
hereto.

     "Permitted Encumbrances" shall mean with respect to the Mortgaged Property:

          (a)  Liens  securing  the  obligations;

          (b)  minor  defects  in title which do not secure the payment of money
     and  otherwise have no material adverse effect on the value or operation of
     the  subject  property,  including,  without  limitation,  easements,
     rights-of-way,  servitudes,  permits,  surface  leases,  and  other similar
     rights  in  respect  of  surface  operations,  and easements for pipelines,
     streets, alleys, highways, telephone lines, power lines, railways and other
     easements  and  rights-of-way,  on,  over  or  in  respect  of  any  of the
     properties  of  Mortgagor  that  are customarily granted in the oil and gas
     industry;

          (c)  inchoate  statutory  or operators' Liens securing obligations for
     labor,  services,  materials  and  supplies furnished for operations on the
     Lands,  which  are  not  more  than  60  days  delinquent;

<PAGE>

          (d)  mechanic's,  materialman's,  warehouseman's,  journeyman's  and
     carrier's Liens, and other similar Liens arising by operation of law in the
     ordinary  course  of business, securing obligations which are not more than
     60  days  delinquent;

          (e)  Liens for taxes or assessments not yet due or not yet delinquent,
     or,  if  delinquent,  that  are being contested in good faith in the normal
     course  of  business  by  appropriate  action;

          (f)  lease  burdens payable to third parties which are deducted in the
     calculation  of discounted present value in any reserve report delivered by
     Mortgagor pursuant to the Credit Agreements, including, without limitation,
     any  royalty, overriding royalty, net profits interest, production payment,
     carried  interest  or  reversionary  working  interest;  and

          (g)  Liens,  charges  and  encumbrances upon Mortgagor's assets, other
     than  Proved  Mineral Interests, which in the aggregate do not have a value
     in  excess  of  $50,000.

     "Person"  shall  mean  any  individual,  corporation,  partnership, limited
liability  company,  association,  trust,  other  entity or organization, or any
court  or  governmental  department,  commission,  board,  bureau,  agency,  or
instrumentality  of  any nation or of any province, state, commonwealth, nation,
territory, possession, county, parish, or municipality, whether now or hereafter
constituted  or  existing.

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

     "Proved  Mineral  Interests"  shall  mean,  collectively,  Proved Producing
Mineral Interests, Proved Nonproducing Mineral Interests, and Proved Undeveloped
Mineral  Interests.

     "Proved  Nonproducing  Mineral  Interests" shall mean all Subject Interests
which  constitute  proved  developed  nonproducing  reserves.

     "Proved Producing Mineral Interests" shall mean all Subject Interests which
constitute  proved  developed  producing  reserves.

     "Proved  Undeveloped  Mineral  Interests"  shall mean all Subject Interests
which  constitute  proved  undeveloped  reserves.

     "Section"  shall  mean  and  refer  to  a  section of this Mortgage, unless
specifically  indicated  otherwise.

     "Secured  Indebtedness"  shall have the meaning stated in Article 3 of this
Mortgage.

     "Subject  Interests"  shall  have  the  meaning stated in Article 2 of this
Mortgage.

     "Subsidiary" shall mean, for any Person, any corporation or other entity of
which  securities  or  other ownership interests having ordinary voting power to
elect  a  majority of the board of directors or other persons performing similar
functions  (including  that  of  a  general partner) are at the time directly or

<PAGE>

indirectly  owned,  collectively,  by  such  Person and any Subsidiaries of such
Person.  "Subsidiary"  shall  include  Subsidiaries of Subsidiaries (and so on).

     "Well  Data"  shall  mean  all  logs,  drilling  reports,  division orders,
transfer  orders,  operating  agreements,  contracts  and  other  agreements,
abstracts,  title  opinions,  files,  records, seismic data, memoranda and other
information  in the possession or control of Mortgagor or to which Mortgagor has
access  relating  to  the  Lands  and/or  any  wells  located  thereon.

     1.2.  Other  Terms. Unless otherwise defined or indicated herein, all terms
           ------------
with their initial letter capitalized shall have the meaning given such terms in
the  Revolving  Credit  Agreement.

                                   ARTICLE II
                       GRANTING CLAUSE: MORTGAGED PROPERTY

     Mortgagor, for and in consideration of the sum of $10.00 and other good and
valuable  consideration,  in hand paid by Mortgagee, the receipt and adequacy of
which  are  hereby  acknowledged  and  confessed  by  Mortgagor,  and for and in
consideration of the debt and purposes hereinafter set forth, to secure the full
and  complete  payment and performance of the Secured Indebtedness and to secure
the  performance  of  the covenants, obligations, agreements and undertakings of
Mortgagor  hereinafter described, have GRANTED, BARGAINED, WARRANTED, MORTGAGED,
ASSIGNED,  TRANSFERRED  and  CONVEYED,  and by these presents do GRANT, BARGAIN,
WARRANT,  MORTGAGE,  ASSIGN,  TRANSFER  and  CONVEY  unto  Trustee and Trustee's
substitutes  or successors, and his and their assigns, for the uses and purposes
herein  set  forth,  with  warranties  and covenants of title only to the extent
provided  herein  and  in the Credit Agreements, all of Mortgagor's right, title
and interest, whether now owned or hereafter acquired, in all of the hereinafter
described  properties,  rights  and  interests; and, insofar as such properties,
rights  and  interests  consist  of  equipment,  general  intangibles, accounts,
contract rights, inventory, goods, chattel paper, instruments, documents, money,
fixtures,  as  extracted  collateral, proceeds and products of collateral or any
other  Personal  Property  of  a  kind or character defined in or subject to the
applicable  provisions  of  the  Code,  Mortgagor  hereby  grants to Mortgagee a
security  interest  therein,  whether  now  owned or hereafter acquired, namely:

          (a)  all  of  those certain Oil and Gas Leases and Lands (all such Oil
     and  Gas  Leases  and Lands being herein called the "Subject Interests," as
     hereinafter  further  defined)  which  are described in Exhibit A and/or to
     which reference may be made in Exhibit A and/or which are covered by any of
     the  leases  described on Exhibit A, which Exhibit A is made a part of this
     Mortgage for all purposes, and is incorporated herein by reference as fully
     as  if  copied  at  length  in  the  body  of  this Mortgage at this point;

          (b)  all  rights, titles, interests and estates now owned or hereafter
     acquired by Mortgagor in and to (i) any and all properties now or hereafter
     pooled  or  unitized  with  any  of  the  Subject  Interests,  and (ii) all
     presently  existing  or  future  operating  agreements  and  unitization,
     communitization  and  pooling  agreements and the units operated thereby to
     the  extent  the  same  relate to all or any part of the Subject Interests,
     including,  without  limitation,  all units formed under or pursuant to any

<PAGE>

     applicable  laws  (the  rights,  titles, interests and estates described in
     this  clause (b) also being included within the term "Subject Interests" as
     used  herein);

          (c)  all presently existing and future agreements entered into between
     Mortgagor and any third party that provide for the acquisition by Mortgagor
     of  any  interest  in  any  of  the  properties  or  interests specifically
     described  in  Exhibit  A  or  which  relate  to  any of the properties and
     interests  specifically  described  in  Exhibit  A;

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

          (e)  the  Accounts  and  Contract  Rights;

          (f)  the  Operating  Equipment;

          (g)  the  Well  Data;

          (h)  the  rights and security interests of Mortgagor held by Mortgagor
     to  secure  the obligation of the first purchaser to pay the purchase price
     of  the  Hydrocarbons;

          (i)  all  surface  leases,  rights-of-way,  franchises,  easements,
     servitudes,  licenses,  privileges,  tenements,  hereditaments  and
     appurtenances now existing or in the future obtained in connection with any
     of  the  aforesaid, and all other items of value and incident thereto which
     Mortgagor  may,  at  any  time,  have  or  be  entitled;  and

          (j)  all  and  any  different  and additional rights of any nature, of
     value  or  convenience  in  the  enjoyment,  development,  operation  or
     production,  in any way, of any property or interest included in any of the
     foregoing  clauses, and in all revenues, income, rents, issues, profits and
     other  benefits  arising therefrom or from any contract now in existence or
     hereafter  entered  into  pertaining  thereto, and in all rights and claims
     accrued  or  to  accrue  for the removal by anyone of Hydrocarbons from, or
     other  act  causing  damage  to,  any  of  such  properties  or  interests.

     All  the  aforesaid properties, rights and interests, together with any and
all substitutions, replacements, corrections or amendments thereto, or renewals,
extensions  or ratifications thereof, or of any instrument relating thereto, and
together  with  any additions thereto which may be subjected to the Lien of this
Mortgage by means of supplements hereto, being hereinafter called the "Mortgaged
Property".

     Subject,  however,  to  (i)  Permitted Encumbrances, and (ii) the condition
that  Mortgagee  shall  not  be liable in any respect for the performance of any
covenant  or  obligation  of  Mortgagor  with respect to the Mortgaged Property.

     TO  HAVE  AND  TO  HOLD  the  Mortgaged  Property  unto  Mortgagee  and its
successors,  legal  representatives and assigns, forever, subject to Section 7.3
hereof,  to  secure,  in  each such instance, the payment and performance of the
Secured  Indebtedness  and  the  Obligations.

<PAGE>

                                   ARTICLE III
                              SECURED INDEBTEDNESS

     This Mortgage is given to secure the Loans and all of the Obligations under
and  as  described  in  the  Credit  Agreements  and  the  Guaranty  Agreements,
including,  without  limitation:

          (a)  interest on all credit outstanding under the Credit Agreements at
     the  rates  provided  in  the  Credit  Agreements;

          (b)  the  Obligations, including, without limitation, the indebtedness
     evidenced  by  the  Notes;

          (c)  payment  and  performance  of  any  and  all  present  and future
     obligations  of  Mortgagor  according to the terms of any present or future
     hedge  transaction,  including,  without  limitation, any present or future
     swap  agreements,  cap,  floor,  collar,  exchange  transaction,  forward
     agreement  or  other exchange or protection agreements relating to any such
     transaction  now  existing  or hereafter entered into between Mortgagor and
     Mortgagee;

          (d)  any  sums advanced as expenses or costs incurred by, or on behalf
     of,  Mortgagee  which  are  made  or incurred pursuant to the terms of this
     Mortgage  or  any  Credit  Agreement, plus interest thereon at the rate set
     forth  in Section 1.1 of the Notes, as applicable, from the date of advance
     or  expenditure  until  reimbursed;  and

          (e)  all  other  and  additional debts, obligations and liabilities of
     every  kind and character of Mortgagor now existing or hereafter arising in
     connection  with  any  of  the  Credit  Agreements or otherwise (all of the
     obligations  and  indebtedness  referred  to  in  this  Article  3, and all
     renewals,  refinancings,  extensions  and  modifications  thereof,  and all
     substitutions  therefor, in whole or in part, are herein sometimes referred
     to  as  the  "Secured  Indebtedness").

                                   ARTICLE IV
                     COVENANTS, REPRESENTATIONS, WARRANTIES
                           AND AGREEMENTS OF MORTGAGOR

     Mortgagor  hereby  covenants,  represents,  warrants  and  agrees  that:

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

     4.2. Warranties. (a) Mortgagor, to the extent of the interests specified in
          ----------
Exhibit  A, has good and defensible title, subject to Permitted Encumbrances, to
each  property  right or interest constituting the Mortgaged Property, and has a
good and legal right to make the grant and conveyance made in this Mortgage; (b)
Mortgagor's  present  Net Revenue Interest in the Mortgaged Property is not less
than  that  specified in Exhibit A and if no interest is specified, includes all
its  interests  however  specified  in  and  to the Oil and Gas Leases and Lands
described  on  Exhibit  A; and (c) the Mortgaged Property is free from all Liens
other  than  Permitted  Encumbrances.  Mortgagor will warrant and forever defend
(subject to those Permitted Encumbrances described in clauses (b) and (f) of the
definition  of  "Permitted Encumbrances" set forth above) the Mortgaged Property

<PAGE>

unto  Mortgagee  and  Mortgagee's successors, legal representatives and assigns,
and Trustee and Trustee's successors, legal representatives and assigns, against
every  Person  whomsoever  lawfully  claiming  the same or any part thereof, and
Mortgagor  will  maintain and preserve the Lien hereby created so long as any of
the  Secured  Indebtedness  remains  unpaid, except where such failure to comply
would  not  have  a  Material  Adverse  Effect.

     4.3.  Further Assurances. Mortgagor will execute and deliver such other and
           ------------------
further instruments and will do such other and further acts as in the reasonable
discretion  of  Mortgagee  may  be  necessary  or  desirable  to  carry out more
effectively  the  purposes  of  this  Mortgage,  including, without limiting the
generality  of the foregoing, (a) prompt correction of any material defect which
may  hereafter  be  discovered  in the title to the Mortgaged Property or in the
execution  and  acknowledgment of this Mortgage, any Note, or any other document
used  in connection herewith or at any time delivered to Mortgagee in connection
with  any  Obligations,  and  (b)  if  required  by  Section  8.1 hereof, prompt
execution and delivery of all division or transfer orders that in the reasonable
discretion of Mortgagee are needed to transfer effectively the assigned proceeds
of  production  from  the  Mortgaged  Property  to  Mortgagee.

     4.4.  Taxes.  To  the  extent  and  in  the  manner  required by the Credit
           -----
Agreements,  and  to the extent not prohibited by applicable law, Mortgagor will
promptly  pay, or cause to be paid, all taxes legally imposed upon this Mortgage
or  upon  the  Mortgaged  Property or upon the interest of Mortgagee therein, or
upon  the  income,  profits,  proceeds  and  other  revenues  thereof.

     4.5.  Operation  of  the  Mortgaged  Property.  So  long  as  the  Secured
           ---------------------------------------
Indebtedness  or  any  part  thereof  remains  unpaid:

          (a)  Mortgagor  shall  observe  and  comply  with all of the terms and
     provisions,  express  or implied, of all Oil and Gas Leases relating to the
     Subject  Interests  so  long  as  such  Oil  and  Gas Leases are capable of
     producing  Hydrocarbons  in paying quantities, except where such failure to
     comply  would  not  have  a  Material  Adverse  Effect;

          (b)  Mortgagor  shall  comply  with  all  contracts  and  agreements
     applicable  to  or relating to the Mortgaged Property or the production and
     sale of Hydrocarbons therefrom, except to the extent a failure to so comply
     would  not  have  a  Material  Adverse  Effect;

          (c)  Mortgagor shall, at all times, take reasonable steps to maintain,
     preserve  and  keep  all  Operating  Equipment  used  with  respect  to the
     Mortgaged  Property in proper repair, working order and condition, and make
     all necessary or appropriate repairs, renewals, replacements, additions and
     improvements  thereto  so  that  the efficiency of such Operating Equipment
     shall  at all times be properly preserved and maintained, except where such
     failure  to  comply would not have a Material Adverse Effect; provided that
     no  item  of  Operating  Equipment  need be so repaired, renewed, replaced,
     added  to or improved, if Mortgagor shall in good faith determine that such
     action  is  not  necessary  or  desirable  for  the continued efficient and
     profitable  operation  of  the  Subject  Interests;

          (d)  Mortgagor  shall cause the Mortgaged Property to be kept free and
     clear  of  all  Liens  other  than  Permitted  Encumbrances;

<PAGE>

          (e)  Mortgagor  shall  comply  with the terms of the Credit Agreements
     with  respect  to  maintenance  of  insurance.  All loss payable clauses or
     provisions  in  said  policy  or policies shall be endorsed in favor of and
     made payable to Mortgagee, as its interest may appear. Mortgagee shall have
     the  right  to  collect, and Mortgagor hereby assigns to Mortgagee, any and
     all  monies that may become payable under any such policies of insurance by
     reason of damage, loss or destruction of any of the Mortgaged Property, and
     Mortgagee may, at its election, either apply all or any part of the sums so
     collected  toward  payment of the Secured Indebtedness, whether or not such
     Secured  Indebtedness,  or any portion thereof, is then due and payable, in
     such  manner  as  Mortgagee  may  elect,  or release same to Mortgagor; and

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

     4.6.  Recording.  Mortgagor  will promptly and at Mortgagor's sole cost and
           ---------
expense,  record,  register,  deposit  and  file  this  Mortgage and every other
instrument  in addition or supplemental hereto in such offices and places and at
such  times  and as often as may be necessary to preserve, protect and renew the
Lien  hereof  as  a perfected Lien on real or personal property, as the case may
be,  subject  only  to  Permitted  Encumbrances,  and the rights and remedies of
Mortgagee,  and otherwise will do and perform all matters or things necessary or
expedient to be done or observed by reason of any law or regulation of any state
or  of the United States or of any other competent authority, for the purpose of
effectively  operating,  maintaining  and  preserving  the  Lien  hereof  on the
Mortgaged  Property.

     4.7.  Records,  Statements and Reports. Mortgagor will keep proper books of
           --------------------------------
record  and  account  in  which  complete  and  correct  entries will be made of
Mortgagor's  transactions  in  accordance  with  sound  accounting  principles,
consistently  applied and will, to the extent required by the Credit Agreements,
furnish or cause to be furnished to Mortgagee (a) all reports required under the
Credit  Agreements,  and  (b) such other information concerning the business and
affairs and financial condition of Mortgagor as Mortgagee may, from time to time
reasonably  request.

     4.8.  No  Government  Approvals.  Mortgagor  warrants  that  no approval or
           -------------------------
consent  of  any  Person is necessary to authorize the execution and delivery of
this  Mortgage,  or  any  of  the  other  Credit  Agreements or the Notes, or to
authorize  the observance or performance by Mortgagor of the covenants herein or
therein  contained.

     4.9.  Right  of  Entry.  Mortgagor  will permit Mortgagee, or the agents or
           ----------------
designated  representatives  of Mortgagee, to enter upon the Mortgaged Property,
and  all  parts  thereof,  for  the purposes of investigating and inspecting the
condition  and  operation  thereof.

     The  representations  and  warranties set forth in the Credit Agreement are
incorporated  herein  by  reference  as  if  set  forth  herein,  and  each such
representation  and  warranty  is  true  and  correct.

<PAGE>

                                    ARTICLE V
                         ADDITIONS TO MORTGAGED PROPERTY

     It  is  understood  and  agreed  that  Mortgagor  may  periodically subject
additional properties to the Lien of this Mortgage. In the event that additional
properties  are  to be subjected to the Lien hereof, the parties hereto agree to
execute  a  supplemental  mortgage,  satisfactory  in  form  and  substance  to
Mortgagee,  together  with  any security agreement, financing statement or other
security  instrument  required  by  Mortgagee,  all  in  form  and  substance
satisfactory  to  Mortgagee  and  in a sufficient number of executed (and, where
necessary  or  appropriate,  acknowledged)  counterparts for recording purposes.
Upon  execution of such supplemental mortgage, all additional properties thereby
subjected  to  the  Lien  of  this  Mortgage  shall become part of the Mortgaged
Property  for  all  purposes.

                                   ARTICLE VI
                           ENFORCEMENT OF THE SECURITY

     6.1. General Remedies. Upon the occurrence and during the continuance of an
          ----------------
Event  of Default, Mortgagee may perform or direct Trustee to perform any one or
more  of  the  following  acts, subject to and in accordance with any applicable
provision  of  the  Credit  Agreements  and  to  any  mandatory  requirements or
limitations  of  applicable  law  then  in  force:

          (a)  exercise  all  of  the rights, remedies, powers and privileges of
     Mortgagor  with respect to the Mortgaged Property or any part thereof, give
     or  withhold  all  consents  required  therein  which,  with respect to the
     Mortgaged  Property  or  any  part  thereof,  Mortgagor  would otherwise be
     entitled  to  give  or  withhold  and  perform  or  attempt  to perform any
     covenants  in  this  Mortgage  which  Mortgagor  is  obligated  to perform;
     provided  that  no  payment  or performance by Mortgagee shall constitute a
     waiver  of  any  Event  of Default and Mortgagee shall be subrogated to all
     rights and Liens securing the payment of any debt, claim, tax or assessment
     for  the  payment of which Mortgagee may make an advance or which Mortgagee
     may  pay.

          (b) execute and deliver to such Person or Persons as may be designated
     by  Mortgagee  appropriate  powers  of attorney to act for and on behalf of
     Mortgagor  in all transactions with any federal, state or local agency with
     respect  to  any  of  the  Mortgaged  Property.

          (c) exercise any and all other rights or remedies granted to Mortgagee
     pursuant  to  the provisions of any of the Credit Agreements and applicable
     law.

          (d) if Mortgagor has failed to keep or perform any covenant whatsoever
     contained  in  any Credit Agreement or this Mortgage, Mortgagee may, at its
     option,  perform  or  attempt to perform such covenant. Any payment made or
     expense  incurred  in  the performance or attempted performance of any such
     covenant  shall  be  a  part  of  the  Secured  Indebtedness, and Mortgagor
     promises,  upon  demand,  to pay to Mortgagee, at the place where the Notes
     are  payable,  or  at  such  other place as Mortgagee may direct by written
     notice,  all  sums  so  advanced or paid by Mortgagee, with interest at the
     rate  set  forth  in  Section  2.2  of the Notes from the date when paid or
     incurred  by  Mortgagee.  No  such  payment by Mortgagee shall constitute a
     waiver  of  any  Event  of  Default.

<PAGE>

          (e) Mortgagee may, at its option, without notice, demand, presentment,
     notice  of  intent  to accelerate or of acceleration, or notice of protest,
     all  of  which are hereby expressly waived by Mortgagor, declare the entire
     unpaid  balance  of  the  Secured  Indebtedness,  or  any  part  thereof,
     immediately  due  and  payable,  and  upon  such  declaration  it  shall be
     immediately  due and payable, and the Liens hereof shall then be subject to
     foreclosure  in  accordance  with  applicable  law.

          (f)  Upon  the occurrence of an Event of Default, this Mortgage may be
     foreclosed  as  to  the  Mortgaged  Properties, or any part thereof, in any
     manner  permitted  by  applicable  law.

     Mortgagee  may  request  Trustee  to,  and  in such event Trustee is hereby
authorized  and  empowered  and  it  shall  be his or her special duty upon such
request of Mortgagee and to the extent permitted by applicable law, proceed with
foreclosure  and  sell  all or any part of the Mortgaged Property at one or more
sales,  as  an  entirety or in parcels, at such place or places and otherwise in
such manner and upon such notice as may be required by applicable law or, in the
absence  of  any such requirement, as Trustee or Mortgagee may deem appropriate,
and  to  make  conveyance  to the purchaser or purchasers thereof. Any such sale
shall  be made to the highest bidder or bidders for cash, at the courthouse door
of  the county wherein the Mortgaged Property is situated; provided that, if the
Mortgaged  Property  is  situated  in  more  than  one  county, such sale of the
Mortgaged  Property, or part thereof, may be made in any county wherein any part
of the Mortgaged Property is situated. Such sale shall be made at public outcry,
on the day of any month, during the hours of such day, and after written notices
thereof  have  been publicly posted in such places and for such time periods and
all  Persons  entitled  to  notice  thereof  have  been sent such notice, all as
required by applicable law. If the applicable law in force as of the date hereof
should  hereafter be amended to require a different notice of sale applicable to
sales  of  property of the nature of the Mortgaged Property under powers of sale
conferred  by  mortgages  or  deeds  of  trust,  Trustee may, in his or her sole
discretion, to the extent permitted by applicable law, give either the notice of
sale  required  by  applicable law in effect on the date hereof or the notice of
sale  prescribed  by  the  amended  law;  and  nothing herein shall be deemed to
require  Mortgagee  or  Trustee  to  do,  and Mortgagee and Trustee shall not be
required  to  do,  any act other than as required by applicable law in effect at
the  time of any such sale. After such sale, Trustee shall make to the purchaser
or purchasers thereunder good and sufficient deeds, assignments or bills of sale
in  the  name of Mortgagor, conveying or transferring the Mortgaged Property, or
any  part  thereof,  so  sold  to  the  purchaser  or purchasers containing such
warranties  of title as are customarily given, which warranties shall be binding
upon  Mortgagor.

     Sale  of  a  part  of the Mortgaged Property shall not exhaust the power of
sale  granted  hereby, but sales may be made from time to time until the Secured
Indebtedness  is  paid  and performed in full. It shall not be necessary to have
present or to exhibit at any such sale any of the Personal Property. In addition
to the rights and other powers of sale granted under the preceding provisions of
this Section 6.1(f), if default is made in the payment of any installment of the
Obligations,  Mortgagee  may,  at  its option, at once or at any time thereafter
while  any  matured  installment  remains  unpaid,  without declaring the entire
Secured  Indebtedness  to  be  due and payable, orally or in writing, enforce or
direct  Trustee  to enforce (as provided by applicable law) the Liens created by
this  Mortgage  and  sell  the  Mortgaged  Property  subject  to  such  matured
indebtedness and the Liens securing its payment, in the same manner, on the same
terms,  at  the  same  place  and time and after having given notice in the same
manner,  all  as  provided  in  the preceding provisions of this Section 6.1(f).
After such sale, Mortgagee or Trustee (as provided by applicable law) shall make
due  conveyance  to the purchaser or purchasers. Sales made without maturing the

<PAGE>

Secured  Indebtedness  may  be made hereunder whenever there is a default in the
payment  of  any  installment of the Secured Indebtedness without exhausting the
power  of sale granted hereby and without affecting in any way the power of sale
granted  under  this  Section  6.1(f),  the  unmatured  balance  of  the Secured
Indebtedness (except as to any proceeds of any sale which Mortgagee may apply as
prepayment  of  the  Secured Indebtedness), or the Liens securing payment of the
Secured  Indebtedness. The sale or sales of less than the whole of the Mortgaged
Property  shall  not  exhaust the power of sale herein granted, and Mortgagee or
Trustee  (as  provided  by  applicable  law)  is  specifically empowered to make
successive  sale  or  sales  under  such  power until the whole of the Mortgaged
Property  shall  be  sold. It is intended by each of the foregoing provisions of
this  Section  6.1(f)  that  Trustee  may,  after  any  request  or direction by
Mortgagee,  sell  not  only  the  Subject  Interests  but  also  all other items
constituting  a part of the Mortgaged Property along with the Subject Interests,
or  any  part thereof, all as a unit and as a part of a single sale, or may sell
any  part  of  the  Mortgaged  Property  separately  from  the  remainder of the
Mortgaged Property. If the proceeds of such sale or sales of less than the whole
of  such  Mortgaged  Property  shall  be  less than the aggregate of the Secured
Indebtedness  and  the  expense of enforcing the trust created by this Mortgage,
the  Liens  of  this  Mortgage  shall  remain in full force and effect as to the
unsold  portion of the Mortgaged Property just as though no sale or sale of less
than  the whole of the Mortgaged Property had occurred, but Mortgagee shall have
the  right, at its sole election, to request Trustee to sell less than the whole
of the Mortgaged Property. In the event any questions should be raised as to the
regularity  or validity of any sale hereunder, Mortgagee or Trustee (as provided
by  applicable law) shall have the right and is hereby authorized to make resale
of  said property so as to remove any questions or doubt as to the regularity or
validity  of  the  previous  sale,  and  as  many  resales may be made as may be
appropriate.  It  is  agreed  that,  in  any deed or deeds given by Mortgagee or
Trustee (as provided by applicable law), any and all statements of fact or other
recitals  therein  made as to the identity of Mortgagee, or as to the occurrence
or  existence  of  any Event of Default, or as to the request to sell, notice of
sale,  time,  place,  terms,  and manner of sale, and receipt, distribution, and
application  of  the  money  realized  therefrom,  or  as  to the due and proper
appointment  of  a  substitute  trustee,  and,  without  being  limited  by  the
foregoing, as to any other act or thing having been duly done by Mortgagee or by
Trustee  shall  be  taken  by any Governmental Authority as prima facie evidence
that  the  said  statements  or  recitals  are  true and correct and are without
further question to be so accepted, and Mortgagor does hereby ratify and confirm
any  and  all  acts that Trustee or Mortgagee may lawfully do in the premises by
virtue  hereof.  In  the event of the resignation or death of Trustee, or his or
her  failure, refusal, or inability, for any reason, to make any such sale or to
perform  any  of  the  trusts  herein  declared, or, at the option of Mortgagee,
without  cause,  Mortgagee  may  appoint  at  its sole discretion, in writing, a
substitute  trustee,  who  shall  thereupon  succeed to all the estates, titles,
rights, powers, and trusts herein granted to and vested in Trustee. If Mortgagee
is a national banking association or a corporation, such appointment may be made
on  behalf  of  such  Mortgagee  by any Person who is then the president, or any
vice-president,  or the cashier or secretary, or any other authorized officer or
agent  of  Mortgagee.  In  the  event  of  the  resignation or death of any such
substitute  trustee,  or  his or her failure, refusal, or inability to make such
sale  or  perform  such  trusts,  or, at the option of Mortgagee, without cause,

<PAGE>

Mortgagee  may  appoint  successive substitute trustees from time to time in the
same manner. Wherever herein the word "Trustee" is used, the same shall mean the
Person  who is the duly appointed Trustee or substitute trustee hereunder at the
time  in  question.

          (g)  Mortgagee  may, or Trustee may upon written request of Mortgagee,
     in  lieu  of or in addition to exercising the power of sale provided for in
     Section  6.1(f)  hereof,  proceed by suit or suits, at law or in equity, to
     enforce  the  payment  and  performance  of  the  Secured  Indebtedness  in
     accordance  with  the  terms hereof and of the Credit Agreements evidencing
     it,  to  foreclose the Liens of this Mortgage as against all or any part of
     the  Mortgaged  Property,  and  to  have  all  or any part of the Mortgaged
     Property  sold  under  the  judgment  or  decree  of  a  court of competent
     jurisdiction.

          (h)  To  the  extent  permitted  by  law, upon the acceleration of the
     Secured Indebtedness, Mortgagee, as a matter of right and without regard to
     the  sufficiency  of  the  Mortgaged  Property,  and without any showing of
     insolvency,  fraud  or  mismanagement on the part of Mortgagor, and without
     the  necessity  of  filing  any judicial or other proceeding other than the
     proceeding  for  appointment  of  a  receiver,  shall  be  entitled  to the
     appointment  of  a  receiver or receivers of the Mortgaged Property, or any
     part  thereof,  and of the income, royalties, revenues, bonuses, production
     payments,  delay  rentals,  benefits,  rents,  issues  and profits thereof.
     Mortgagor  hereby consents to the appointment of such receiver or receivers
     and  agrees not to oppose any application therefor by Trustee or Mortgagee.

          (i)  Upon  the acceleration of the Secured Indebtedness, Mortgagee may
     (without  notification,  if  permitted  by  applicable  law) enter upon the
     Mortgaged  Property,  take  possession of the Mortgaged Property and remove
     the Personal Property or any part thereof, with or without judicial process
     and,  in  connection  therewith, without any responsibility or liability on
     the part of Mortgagee, take possession of any property located on or in the
     Mortgaged  Property  which is not a part of the Mortgaged Property and hold
     or  store  such property at Mortgagor's expense. If necessary to obtain the
     possession  provided  for in this Section 6.1 (i), Mortgagee or Trustee may
     undertake  any  and  all  remedies  to  dispossess  Mortgagor,  including,
     specifically, one or more actions for forcible entry and detainer, trespass
     to  try  title  and  restitution.

          (j)  Mortgagee may require Mortgagor to assemble any Personal Property
     and  any  other  items  of the Mortgaged Property, or any part thereof, and
     make  it  available  to  Mortgagee  at  a  place  reasonably  convenient to
     Mortgagor  and  Mortgagee  to  be  designated  by  Mortgagee.

          (k) Mortgagee may surrender the insurance policies maintained pursuant
     to  the  Credit  Agreements, or any part thereof, and receive and apply the
     unearned  premiums  as  a  credit  on  the  Secured  Indebtedness,  and, in
     connection  therewith, Mortgagor hereby appoints Mortgagee as the agent and
     attorney-in-fact  for  Mortgagor  (with  full  powers  of  substitution) to
     collect  such  premiums,  which  power  of attorney shall be deemed to be a
     power  coupled with an interest and therefore irrevocable until the release
     of  the  Liens  evidenced  by  this  Mortgage.

          (l)  Mortgagee may retain the Personal Property and any other items of
     the  Mortgaged  Property,  or  any part thereof, in satisfaction or partial
     satisfaction  of  the  Secured  Indebtedness whenever the circumstances are
     such  that  Mortgagee  is  entitled  to  do  so  under  the  Code.

<PAGE>

          (m) Mortgagee shall have the right to become the purchaser at any sale
     of  the  Mortgaged  Property  held  by  Mortgagee, Trustee or by any court,
     receiver  or  public  officer, and Mortgagee shall have the right to credit
     upon the amount of the bid made therefor, the amount payable out of the net
     proceeds  of  such  sale to Mortgagee. Recitals contained in any conveyance
     made  to  any  purchaser  at  any  sale  made  hereunder shall conclusively
     establish  the truth and accuracy of the matters therein stated, including,
     without  limiting the generality of the foregoing, nonpayment of the unpaid
     principal  sum  of, interest accrued on, and fees payable in respect of the
     Secured  Indebtedness  after  the  same  have  become  due and payable, and
     advertisement  and  conduct  of  such sale in the manner provided herein or
     appointment  of  any  successor  Trustee  hereunder.

          (n) Mortgagee may buy any Personal Property and any other items of the
     Mortgaged  Property  or  any part thereof at any private disposition if the
     Mortgaged  Property  or  the  part  thereof  being  disposed  of  is a type
     customarily  sold  in a recognized market or a type which is the subject of
     widely  distributed  standard  price  quotations.

          (o)  Mortgagee  shall  have  and may exercise any and all other rights
     which  Mortgagee  may  have  under  the  Code,  by  virtue  of  the  Credit
     Agreements,  this  Mortgage,  at  law,  in  equity  or  otherwise.

     Mortgagee shall have no obligation to do, or refrain from doing, any of the
acts, or to make or refrain from making any payment, referred to in this Section
6.1.

     6.2.  Foreclosure  by Judicial Proceedings. Upon the occurrence of an Event
           ------------------------------------
of Default, Mortgagee may proceed, where permitted by law, by a suit or suits in
equity  or  at  law, whether for a foreclosure hereunder, or for the sale of the
Mortgaged Property, or for the specific performance of any covenant or agreement
herein  contained or in aid of the execution of any power herein granted, or for
the  appointment  of a receiver pending any foreclosure hereunder or the sale of
the Mortgaged Property, or for the enforcement of any other appropriate legal or
equitable  remedy.

     6.3. Receipt to Purchaser. Upon any sale by virtue of judicial proceedings,
          --------------------
the  receipt of the officer making such sale under judicial proceedings shall be
sufficient discharge to the purchaser or purchasers at any sale for his or their
purchase  money,  and  such  purchaser or purchasers, or his or their assigns or
personal  representatives,  shall  not,  after  paying  such  purchase money and
receiving  such  receipt  of  such  officer therefor, be obligated to see to the
application  of  such  purchase  money or be in any way answerable for any loss,
misapplication  or  non-application  thereof.

     6.4.  Effect  of  Sale.  Any  sale  or  sales  of the Mortgaged Property or
           ----------------
portions  thereof  where  permitted  by  law  shall operate to divest all right,
title,  interest,  claim  and  demand  whatsoever  either at law or in equity of
Mortgagor  of,  in  and  to  the  premises  and the property sold and shall be a
perpetual  bar,  both  at  law and in equity, against Mortgagor, and Mortgagor's
successors,  legal  representatives  or assigns, and against any and all Persons
claiming  or  who  shall  thereafter  claim  all or any of the property sold by,
through or under Mortgagor, or Mortgagor's successors, legal representatives and

<PAGE>

assigns. Nevertheless, Mortgagor, if requested by Mortgagee to do so, shall join
in  the  execution  and  delivery  of  all  proper  conveyances, assignments and
transfers  of  the  properties  so  sold.

     6.5.  Application  of  Proceeds.  The  proceeds  of  any  sale  of or other
           -------------------------
realization  on the Mortgaged Property, or any part thereof, shall be applied by
Mortgagee  to  the  Secured Indebtedness in such order as Mortgagee shall elect.

     6.6.  Mortgagor's  Waiver  of  Right  to  Appraisement,  Marshaling,  etc.
           -------------------------------------------------------------------
Mortgagor  agrees, to the full extent that Mortgagor may lawfully so agree, that
Mortgagor  will  not  at  any  time  insist  upon  or  plead  or,  in any manner
whatsoever,  claim  the  benefit of any stay, extension or redemption law now or
hereafter  in force in order to prevent or hinder the enforcement or foreclosure
of  this  Mortgage or the absolute sale of the Mortgaged Property or any portion
thereof  or the possession thereof by any purchaser at any sale made pursuant to
any  provision  hereof  or  pursuant  to  the  decree  of any court of competent
jurisdiction;  but  Mortgagor, and all who may claim through or under Mortgagor,
so  far  as  Mortgagor  or  those  claiming  through  or  under Mortgagor now or
hereafter  lawfully  may,  hereby waives the benefit of all such laws. Mortgagor
and  all  who  may  claim  through or under Mortgagor waives, to the extent that
Mortgagor  or  those claiming through or under Mortgagor may lawfully do so, any
and  all  rights  of  appraisement  and  any and all right to have the Mortgaged
Property  marshaled  upon  any foreclosure of the Lien hereof or sold in inverse
order  of  alienation  and agree that any court having jurisdiction to foreclose
such  Lien  may  sell  the Mortgaged Property as an entirety. If any law in this
Section  6.6  referred  to  and  now in force, of which Mortgagor or Mortgagor's
successor  or  successors  might  take  advantage despite the provisions hereof,
shall  hereafter  be  repealed  or  cease  to  be  in  force, such law shall not
thereafter  be deemed to constitute any part of the contract herein contained or
to  preclude the operation or application of the provisions of this Section 6.6.

     6.7.  Mineral  Leasing  Act.  Notwithstanding  any other provisions of this
           ---------------------
Mortgage,  any  Oil and Gas Leases covered by this Mortgage which are subject to
the  Mineral  Leasing  Act  of 1920, as amended, and the regulations promulgated
thereunder,  shall  not be sold or otherwise disposed of to any party other than
citizens  of  the  United  States, or to associations of such citizens or to any
corporation  organized  under  the  laws  of  the United States, or any state or
territory thereof that are qualified to own or control interests in such Oil and
Gas  Leases under the provisions of such Mineral Leasing Act and regulations, or
to  Persons  who  may  acquire  ownership or interest in such Oil and Gas Leases
under  the  provisions  of 30 U.S.C. Sec. 184(g), if applicable, as such Mineral
Leasing  Act  or  regulations  are  now  or  may be from time to time in effect.

     6.8.  Costs  and  Expenses.  All  reasonable  costs,  expenses  (including
           --------------------
attorneys'  fees)  and  payments incurred or made by Mortgagee in protecting and
enforcing  its  rights  hereunder  shall constitute a demand obligation owing by
Mortgagor to the party incurring such or making such costs, expenses or payments
and  shall  bear  interest  at  a  rate per annum equal to the rate set forth in
Section 2.2 of the Notes, all of which shall constitute a portion of the Secured
Indebtedness.

     6.9.  Operation of the Mortgaged Property by Mortgagee. Upon the occurrence
           ------------------------------------------------
of  an  Event  of Default that is continuing and the acceleration of the Secured
Indebtedness  under  any  Credit  Agreement, and in addition to all other rights

<PAGE>

herein conferred on Mortgagee, Mortgagee (or any Person designated by Mortgagee)
shall,  to the extent permitted by applicable law, have the right and power, but
not  the  obligation,  to enter upon and take possession of any of the Mortgaged
Property  and  to  exclude Mortgagor, and Mortgagor's agents or servants, wholly
therefrom  and  to  hold,  use,  administer,  manage and operate the same to the
extent that Mortgagor shall be at the time entitled to do any of such things and
in  Mortgagor's  place  and  stead.  Mortgagee  (or  any  Person  designated  by
Mortgagee)  may  operate  the same without any liability or duty to Mortgagor in
connection with such operations, except to use ordinary care in the operation of
such  Mortgaged  Property,  and  Mortgagee or any Person designated by Mortgagee
shall  have  the right to collect and receive all Hydrocarbons produced and sold
from  the  Mortgaged  Property,  the  proceeds  of which shall be applied to the
Secured  Indebtedness  in  such order as Mortgagee shall elect, to make repairs,
purchase  machinery and equipment, conduct workover operations, drill additional
wells and to exercise every power, right and privilege of Mortgagor with respect
to  the  Mortgaged  Property.  When  and  if such expenses of such operation and
development  (including  costs of unsuccessful workover operations or additional
wells)  have  been paid and the Secured Indebtedness paid and performed in full,
such Mortgaged Property shall, if there has been no sale or foreclosure thereof,
be  returned  to  Mortgagor.

     6.10.  Additional  Waivers. In order to enforce this Mortgage, Mortgagee or
            -------------------
Trustee  shall  not  be obligated (a) to foreclose any other mortgage or deed of
trust  covering  Mortgaged  Property located in another State, seek a deficiency
after any such foreclosure or otherwise enforce Mortgagee's rights in any of the
other  Mortgaged  Property;  or  (b)  to  seek  an  injunction  (prohibitive  or
mandatory),  the  appointment  of a receiver, an order modifying any stay in any
federal  or  state  bankruptcy,  reorganization  or other insolvency proceedings
relating  to  any of the Mortgaged Property or any portion thereof, or any other
extraordinary  relief. Mortgagor waives, to the fullest extent permitted by law,
any  defense  Mortgagor may have to any liability hereunder based on Mortgagee's
failure  or  refusal  to  prosecute,  or  any  lack  of  diligence  or  delay in
prosecuting,  any  action or proceeding to enforce any other mortgage or deed of
trust.  If  Mortgagee  elects  to  enforce  this  Mortgage  before,  or without,
enforcing its rights with respect to any Mortgaged Property covered by any other
Mortgage,  Mortgagor  waives,  to the fullest extent permitted by law, any right
Mortgagor  may have, whether statutory or otherwise, to set off the value of any
other  Mortgaged  Property,  or  any  portion  thereof,  against  the  Secured
Indebtedness.  If  Mortgagee  elects  to enforce its mortgages or deeds of trust
covering  all  or any portion of the Mortgaged Property located in other States,
or in conjunction with the enforcement of this Mortgage, Mortgagee is authorized
to  purchase  all  or  any  part  of  such other Mortgaged Property at public or
private  sale  or  as  otherwise  provided  by applicable law, and to credit the
purchase  price  against  the  Secured  Indebtedness  in such order or manner as
Mortgagee  determines  in its sole discretion and to preserve Mortgagee's rights
and  Liens  under this Mortgage for any portion of the Secured Indebtedness that
remains  unpaid.  Mortgagor waives to the fullest extent permitted by applicable
law  any  right  to claim or seek any credit against the Secured Indebtedness in
excess  of the actual amount bid or received by Mortgagee in connection with the
foreclosure  of  Mortgagee's  Liens  on any of the Mortgaged Property located in
such other States. Mortgagor further agrees that Mortgagee shall not be required
(a)  to  seek  or  obtain  a deficiency judgment in or pursuant to any action or
proceeding  to  foreclose  this  Mortgage  as a condition of later enforcing any
mortgage  or deed of trust covering Mortgaged Property located in another State,
or  (b)  to seek or obtain a deficiency judgment in or pursuant to any action or
proceeding  to foreclose any such other mortgage or deed of trust as a condition

<PAGE>

of later enforcing this Mortgage. Notwithstanding the foregoing, if Mortgagee in
good  faith  believes  that  it  may  be  required either to obtain a deficiency
judgment  to  enforce  this  Mortgage after enforcement of a mortgage or deed of
trust covering Mortgaged Property located in another State or to enforce another
mortgage  or  deed  of  trust  after enforcement of this Mortgage then Mortgagor
agrees  that  Mortgagee  shall  be entitled to seek and obtain such a deficiency
judgment notwithstanding any contrary or inconsistent provision contained in any
Credit  Agreement.

                                   ARTICLE VII
                                  MISCELLANEOUS

     7.1.  Advances by Mortgagee. Each and every covenant herein contained shall
           ---------------------
be  performed  and kept by Mortgagor solely at Mortgagor's expense. If Mortgagor
shall  fail to perform or keep any of the covenants of whatsoever kind or nature
contained  in  this Mortgage, Mortgagee or any receiver appointed hereunder may,
but  shall not be obligated to, make advances to perform the same on Mortgagor's
behalf, and Mortgagor hereby agrees to repay such sums upon demand plus interest
at  a  rate  per annum equal to the rate of interest set forth in Section 2.2 of
the  Notes.  No such advance shall be deemed to relieve Mortgagor from any Event
of  Default  hereunder.

     7.2.  Defense  of  Claims.  Mortgagor  will  notify  Mortgagee, in writing,
           -------------------
promptly  of  the  commencement  of any legal proceedings of which Mortgagor has
notice  affecting  or which could adversely effect the Lien hereof or the status
of or title to the Mortgaged Property or any material part thereof and will take
such  action, employing attorneys agreeable to Mortgagee, as may be necessary to
preserve  Mortgagor's  or  Mortgagee's  rights  affected  thereby;  and  should
Mortgagor fail or refuse to take any such action, Mortgagee may take such action
on behalf and in the name of Mortgagor and at Mortgagor's sole cost and expense.
Moreover,  Mortgagee may take such independent action in connection therewith as
it  may,  in  its  sole discretion, deem proper without any liability or duty to
Mortgagor  except  to use ordinary care, Mortgagor hereby agreeing that all sums
advanced  or  all  expenses incurred in such actions plus interest at a rate per
annum  equal to the rate of interest set forth in Section 2.2 of the Notes will,
on  demand,  be  reimbursed  to  Mortgagee  or any receiver appointed hereunder.

     7.3.  Defeasance.  If the Secured Indebtedness shall be paid and discharged
           ----------
in  full  then,  and in that case only, this Mortgage shall be null and void and
the  interests  of Mortgagor in the Mortgaged Property shall become wholly clear
of the Lien created hereby, and such Lien shall be released in due course at the
cost  of  Mortgagor.  Mortgagee  will,  at Mortgagor's sole expense, execute and
deliver  to Mortgagor all releases and other instruments reasonably requested of
the  Lien  created hereunder. Otherwise, this Mortgage shall remain and continue
in  full  force  and  effect.

     7.4.  Renewals,  Amendments  and Other Security. Renewals, refinancings and
           -----------------------------------------
extensions  of the Secured Indebtedness may be given at any time, and amendments
may  be  made  to  this Mortgage, the Credit Agreements and any other agreements
relating  to any part of the Secured Indebtedness, and Mortgagee may take or may
hold other security for the Secured Indebtedness. Any amendment of this Mortgage
shall  be  by  written instrument and need be executed only by the party against
whom  enforcement  of  such amendment is asserted. Mortgagee may resort first to
such other security or any part thereof or first to the security herein given or

<PAGE>

any part thereof, or from time to time to either or both, even to the partial or
complete  abandonment  of either security, and such action shall not be a waiver
of  any  rights conferred by this Mortgage, which shall continue as a first Lien
upon  the  Mortgaged  Property  not  expressly  released  until  all  Secured
Indebtedness  secured  hereby  is  fully  paid  and  discharged.

     7.5.  Instrument  and  Assignment, etc. This Mortgage shall be deemed to be
           --------------------------------
and  may  be  enforced  from  time  to  time as an assignment, chattel mortgage,
contract, financing statement, real estate mortgage, pledge, security agreement,
or  any  combination thereof, and to the extent that any particular jurisdiction
wherein  a  portion  of the Mortgaged Property is situated does not recognize or
permit Mortgagor to grant, bargain, sell, warrant, mortgage, assign, transfer or
convey  Mortgagor's  rights,  titles  and  interests  to Mortgagee in the manner
herein  adopted,  with  respect  to  the  Mortgaged  Property  located  in  such
jurisdiction,  Mortgagor  does  hereby  grant, bargain, sell, warrant, mortgage,
assign,  transfer and convey unto Mortgagee the Mortgaged Property to secure the
Secured  Indebtedness  and  the  Obligations  of  Mortgagor  contained  herein.

     7.6.  Limitation on Interest. Regardless of any provision contained in this
           ----------------------
Mortgage  or  any of the Credit Agreements, Mortgagee shall never be entitled to
receive,  collect,  or  apply, as interest on the Loans, any amount in excess of
the  Maximum  Lawful Rate, and in the event Mortgagee ever receives, collects or
applies as interest any such excess, such amount which would be deemed excessive
interest shall be deemed a partial prepayment of principal and treated hereunder
as  such; and if the Loans are paid in full, any remaining excess shall promptly
be paid to Mortgagor. In determining whether or not the interest paid or payable
under any specific contingency exceeds the Maximum Lawful Rate, Mortgagor shall,
to the extent permitted under applicable law, (a) characterize any non-principal
payment  as  an  expense,  fee  or  premium rather than as interest, (b) exclude
voluntary  prepayments  and  the  effect  thereof,  and  (c)  amortize, prorate,
allocate and spread, in equal parts, the total amount of the interest throughout
the  entire  contemplated  term  of  the Notes, so that the interest rate is the
Maximum  Lawful Rate throughout the entire term of the Notes; provided, however,
that if the unpaid principal balance thereof is paid and performed in full prior
to  the  end of the full contemplated term thereof, and if the interest received
for  the  actual  period  of  existence thereof exceeds the Maximum Lawful Rate,
Mortgagee  shall  refund  to  Mortgagor  the amount of such excess, and, in such
event,  Mortgagee shall not be subject to any penalties provided by any laws for
contracting  for, charging, taking, reserving or receiving interest in excess of
the  Maximum  Lawful  Rate.

     7.7.  Unenforceable  or  Inapplicable  Provisions. If any provision of this
           -------------------------------------------
Mortgage  or  in any of the Credit Agreements is invalid or unenforceable in any
jurisdiction,  the  other  provisions  hereof or of any of the Credit Agreements
shall  remain  in  full force and effect in such jurisdiction, and the remaining
provisions hereof shall be liberally construed in favor of Mortgagee in order to
effectuate  the provisions hereof, and the invalidity of any provision hereof in
any  jurisdiction  shall  not  affect the validity or enforceability of any such
provision  in any other jurisdiction. Any reference herein contained to statutes
or  laws of a state in which no part of the Mortgaged Property is situated shall
be  deemed  inapplicable  to,  and  not  used  in,  the  interpretation  hereof.

     7.8. Rights Cumulative. Each and every right, power and remedy herein given
          -----------------
to  Mortgagee  shall  be cumulative and not exclusive; and each and every right,
power  and remedy whether specifically herein given or otherwise existing may be
exercised  from  time  to  time  and so often and in such order as may be deemed

<PAGE>

expedient  by  Mortgagee, and the exercise, or the beginning of the exercise, of
any  such  right,  power  or remedy shall not be deemed a waiver of the right to
exercise,  at the same time and thereafter, any other right, power or remedy. No
delay  or  omission  by  Mortgagee in the exercise of any right, power or remedy
shall  impair  any such right, power or remedy or operate as a waiver thereof or
of  any  other  right,  power  or  remedy  then  or  thereafter  existing.

     7.9.  Waiver by Mortgagee. Any and all covenants in this Mortgage may, from
           -------------------
time  to  time,  by  instrument in writing signed by Mortgagee be waived to such
extent and in such manner as Mortgagee may desire, but no such waiver shall ever
affect  or  impair Mortgagee's rights and remedies or Liens hereunder, except to
the  extent  specifically  stated  in  such  written  instrument.

     7.10.  Successors and Assigns. This Mortgage is binding upon Mortgagor, and
            ----------------------
Mortgagor's  heirs, devisees, successors, personal and legal representatives and
assigns,  and  shall  inure  to  the  benefit of Mortgagee and Trustee and their
successors,  legal  representatives and assigns, and the provisions hereof shall
likewise  be  covenants  running  with  the  Lands.

     7.11.  Article  and  Section  Headings. The article and section headings in
            -------------------------------
this Mortgage are inserted for convenience and shall not be considered a part of
this  Mortgage  or  used  in  its  interpretation.

     7.12.  Counterparts.  This  Mortgage  may  be  executed  in  any  number of
            ------------
counterparts,  each  of which shall for all purposes be deemed to be an original
and  all  of  which are identical, except that, to facilitate recordation in any
particular  county  or  parish, counterpart portions of Exhibit A which describe
properties  situated  in counties or parishes other than the county or parish in
which  such  counterpart  is  to  be  recorded  may  be  omitted.

     7.13.  Special Filing as Financing Statements. This Mortgage shall likewise
            --------------------------------------
be  a  security  agreement  and a financing statement by virtue of Mortgagor, as
debtor,  granting  to  Mortgagee,  its  successors,  legal  representatives  and
assigns,  as  secured  party,  a  security  interest  in  all personal property,
as-extracted  collateral,  fixtures,  accounts,  contract  rights,  general
intangibles,  inventory,  goods, chattel paper, instruments, documents and money
described or referred to in granting clauses (a) through (j) of Article 2 hereof
and  all  proceeds and products from the sale, lease or other disposition of the
Mortgaged  Property  or  any  part  thereof. The addresses shown in Section 7.14
hereof  are  the addresses of Mortgagor and Mortgagee and information concerning
the  security interest may be obtained from Mortgagee at its address. Without in
any  manner  limiting  the generality of any of the foregoing provisions hereof:
(a) some portion of the goods described or to which reference is made herein are
or  are  to become fixtures on the Lands described or to which reference is made
herein;  (b)  the  minerals and the like (including oil and gas) included in the
Mortgaged  Property  and  the  accounts  resulting from the sale thereof will be
financed  at the wellhead(s) or minehead(s) of the well(s) or mine(s) located on
the  Lands described or to which reference is made herein; and (c) this Mortgage
is to be filed of record, among other places, in the real estate records of each
county  or  parish  in  which the Lands, or any part thereof, are situated, as a
financing  statement,  but  the  failure  to do so will not otherwise affect the
validity  or  enforceability of this Mortgage. Mortgagor authorizes Mortgagee to
file  such  amendments  to  this  Mortgage,  financing statements and amendments

<PAGE>

     thereto,  and  continuation  statements  as  Mortgagee  deems reasonable or
necessary  to  perfect  and maintain the perfection of the Liens granted herein,
including  such Liens with respect to any additions to the Mortgaged Property as
provided  in  Article  5.

     7.14.  Notices.  Whenever  this  Mortgage  requires or permits any consent,
            -------
approval,  notice,  request  or  demand from one party to another, such consent,
approval,  notice  or  demand  shall, unless otherwise required under applicable
law,  be  given  in  accordance  with  the  provisions of the Credit Agreements,
addressed to the party to be notified at the address stated below (or such other
address  as  may  have  been designated in accordance with the provisions of the
Credit  Agreements):

             MORTGAGOR-DEBTOR                 MORTGAGEE-SECURED PARTY

             Gulf Coast Oil Corporation       Laurus Master Fund, Ltd.
             Attn: Edward R.  DeStefano       c/o M&C Corporate Services Limited
             5851 San Felipe, Suite 775       PO Box 309 G.T.
             Houston, Texas 77057             Ugland House, South Church Street,
             Fax:  713-266-4358               George Town
                                              Grand Cayman, Cayman Islands
                                              Facsimile:  345-949-8080

             with copies to:                  with copies to:
             W. Mark Cotham                   Scott J.  Giordano, Esq.
             Cotham, Harwell & Evans          Loeb & Loeb, LLP
             1616 S.  Voss, Suite 200         345 Park Avenue
             Houston, Texas 77057             New York, New York 10154
             Facsimile:  713-647-7512         Facsimile  212-407-4990

     7.15.  GOVERNING  LAW.  THIS  MORTGAGE, THE NOTES AND THE CREDIT AGREEMENTS
            --------------
SHALL  BE  CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF
TEXAS  AND  THE  LAWS  OF  THE  UNITED  STATES  OF  AMERICA.

     7.16.  Future  Advances:  Maximum  Secured Amount. This Mortgage covers not
            ------------------------------------------
only  the  proceeds of the Loan, but all advances hereafter made by Mortgagee to
or  for  the  benefit  of  Mortgagor (the "Future Advances"), including, without
limitation,  any  amounts  advanced  by  Mortgagee in satisfying, on Mortgagor's
behalf,  any  of  Mortgagor's  Obligations,  and any advances made in accordance
herewith  by  Mortgagee  to  protect  its  security,  and  any other advances by
Mortgagee.  The  maximum  amount  secured hereby may be advanced and repaid, and
again  advanced  and  repaid  from time to time, in Mortgagee' sole and absolute
discretion,  and this Mortgage shall become enforceable upon recording and shall
have  priority  over  all  other  parties whose rights arose after the recording
hereof, with respect to all funds advanced by Mortgagee to Mortgagor, regardless
of  whether  such  funds were advanced before or after the arising of such other
party's  rights.  Nothing  herein shall be interpreted as requiring Mortgagee to
make any Future Advances hereunder. The maximum principal amount secured by this
Mortgage  at  any  one  time  shall  be  $90,000,000.

<PAGE>

     7.17.  Recording. Executed original counterparts of this Mortgage are to be
            ---------
filed  for  record in the records of the Counties wherein the Mortgaged Property
is  situated,  and shall have annexed thereto as Exhibit A, only the portions or
divisions containing specific descriptions of the Mortgaged Property relating to
the  Lands  located  in  such  Counties. Whenever a recorded counterpart of this
Mortgage  contains  specific  descriptions  which  are  less  than  all  of  the
descriptions  contained  in  any  full  counterpart  lodged  with Mortgagee, the
omitted  descriptions  are  hereby  included  by  reference  in  such  recorded
counterpart  as  if  each recorded counterpart conformed to any full counterpart
lodged  with  Mortgagee.

                                  ARTICLE VIII
                            ASSIGNMENT OF PRODUCTION

     8.1.  Assignment.  For  the  purpose  of  further  securing  the  Secured
           ----------
Indebtedness  and  the performance of Mortgagor's covenants hereunder, Mortgagor
does  hereby  TRANSFER,  ASSIGN,  AND  CONVEY  unto Mortgagee any and all of the
interests  of Mortgagor in and to the Hydrocarbons that may be produced from, or
attributable  to, the Mortgaged Property, together with the proceeds of the sale
thereof  and  attributable  thereto.  This assignment is made upon the following
terms and conditions: (a) pipeline companies and others purchasing the oil, gas,
minerals and other substances listed above produced and to be produced from said
property  are  hereby  authorized  and directed to pay directly to Mortgagee the
interests  of  Mortgagor  in  and  to  the proceeds of the sale of the oil, gas,
minerals  and  other  substances  listed  above  produced,  to  be  produced and
attributable to said property and to continue such payments until they have been
furnished  with  a  release  hereof  executed  in  writing by Mortgagee, and the
receipt  of  Mortgagee  for  monies  so  paid to it shall be a full and complete
release,  discharge  and  acquittance  to  any  such  pipeline  company or other
purchaser,  to  the  extent  of  all  amounts  so  paid; (b) Mortgagee is hereby
authorized  to  receive  and  collect  the proceeds of the sale of the oil, gas,
minerals and other substances listed above assigned to it hereunder and to apply
the funds so received first toward the payment of the expenses, if any, incurred
in  the  collection thereof then toward the payment of the Secured Indebtedness,
any  balance  remaining  after  the  full  and  final  payment  of  the  Secured
Indebtedness  to  be held subject to the order of Mortgagor; (c) Mortgagee shall
have  the  right,  at  its  sole  option, at any time, and from time to time, to
release  to,  or  on  the  order  of,  Mortgagor all or any portion of the funds
assigned to Mortgagee hereunder, and no such releases shall affect or impair the
Lien  of this Mortgage or the validity and effect of the assignment contained in
this Article 8; (d) Mortgagee shall never be under any obligation to enforce the
collection  of  the  funds assigned to it hereunder, nor shall it ever be liable
for  failure to exercise diligence in the collection of such funds, but it shall
only  be  accountable for the sums that it shall actually receive; (e) Mortgagor
covenants  to  cause all pipeline companies or other purchasers of the oil, gas,
minerals  and  other  substances  listed above produced from and attributable to
said  property  to  pay promptly to Mortgagee, at the office of Mortgagee at the
address  of  Mortgagee  stated  above,  the interests of Mortgagor in and to the
proceeds  of  the  sale  thereof; and (f) upon the full and final payment of the
Secured  Indebtedness,  Mortgagee,  at  the request of Mortgagor, at Mortgagor's
sole  cost  and  expense,  shall execute and deliver to Mortgagor a reassignment
hereof,  without  recourse,  representations  or warranties. Notwithstanding the
foregoing  provisions  of  this  Section 8.1, so long as no Event of Default has
occurred  and  shall  be  continuing, Mortgagor may continue to receive from the
purchasers of production all such Hydrocarbons and proceeds of the sale thereof,
subject,  however,  to  the  Liens  created  under this Mortgage. If an Event of

<PAGE>

Default  has  occurred  and is continuing, Mortgagee may exercise all rights and
remedies  granted  hereunder, including, without limitation, the right to obtain
possession  of  all  Hydrocarbons  and proceeds of the sale thereof then held by
Mortgagor  or to receive directly from the purchasers all other Hydrocarbons and
proceeds  of  the  sale  thereof.

     8.2.  Power  of  Attorney.  In  consideration of the Loans evidenced by the
           -------------------
Notes, Mortgagor hereby designates and appoints Mortgagee as Mortgagor' true and
lawful  agent  and  attorney-in-fact  (with  full  power of substitution, either
generally or for such limited periods or purposes as Mortgagee may, from time to
time, prescribe) with full power and authority for and on behalf and in the name
of  Mortgagor  upon the occurrence of an Event of Default that is continuing, to
execute,  acknowledge  and  deliver  all  such division orders, transfer orders,
certificates  and  any and all other documents of every nature as may, from time
to  time,  be  necessary  or  proper to effectuate the intent and purpose of the
assignment  contained in Section 8.1 hereof. Mortgagor shall be bound thereby as
fully  and  effectively  as  if  Mortgagor  had  duly executed, acknowledged and
delivered  any  such  division  order,  transfer  order,  certificate  or  other
documents.  The  powers  and  authorities  herein  conferred on Mortgagee may be
exercised  by  any  authorized  officer  or  director of Mortgagee. The power of
attorney  conferred  by this Section 8.2 is granted for a valuable consideration
and  hence is coupled with an interest and is irrevocable so long as the Secured
Indebtedness, or any part thereof, shall remain unpaid. All Persons dealing with
Mortgagee,  any  officer  or director thereof above designated or any substitute
thereof  shall  be  fully  protected  in  treating the powers and authorizations
conferred  by  this  Section  8.2  as  continuing in full force and effect until
advised  by  Mortgagee that all of the Secured Indebtedness is fully and finally
paid.

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

                            [SIGNATURE PAGE TO FOLLOW]

<PAGE>

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

                                         GULF COAST OIL CORPORATION

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

The address of Mortgagor is:

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

                                         This Mortgage  was  prepared  by,  and
                                         recorded  counterparts  should  be
                                         returned to:

                                         Scott J. Giordano, Esq.
                                         Loeb & Loeb LLP
                                         345 Park Avenue
                                         New York, New York 10154

<PAGE>

THE STATE OF TEXAS     )
                       :
COUNTY OF HARRIS       )

     BEFORE  ME,  the  undersigned  authority,  on  this day personally appeared
Edward R. DeStefano, President and CEO of GULF COAST OIL CORPORATION, a Delaware
corporation,  and  known  to me to be the person whose name is subscribed to the
foregoing  instrument,  and acknowledged to me that he executed the same for the
purposes  and  considerations  therein  expressed,  as  the act and deed of such
corporation  and  in  the  capacity  therein  stated.

     GIVEN  UNDER  MY  HAND  AND  SEAL  OF OFFICE this 28 day of June 2006.

                                      /s/ Kimberly Newman
                                      -----------------------------
                                      Notary Public, State of Texas

<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>

                              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.

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.

<PAGE>

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.

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.

<PAGE>

     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.

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,

<PAGE>

     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.

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

<PAGE>

     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.

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.

<PAGE>

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
     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

<PAGE>

     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.

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

<PAGE>

     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.

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

<PAGE>

          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.

RIGHT OF WAYS:

45.  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.

46.  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>

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