Document:

EXHIBIT 10.1
                                                                    ------------

                              AMENDED AND RESTATED
                                 LOAN AGREEMENT

                              dated effective as of
                                  June 7, 2006

                                      among

                               GMX RESOURCES INC.,
                                  as Borrower,

                                       AND

                       CAPITAL ONE, NATIONAL ASSOCIATION,
                            as Administrative Agent,

                                       AND

                     THE BANKS LISTED ON THE SIGNATURE PAGE,
                                    as Banks

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                       AMENDED AND RESTATED LOAN AGREEMENT

                  THIS AMENDED AND RESTATED LOAN AGREEMENT ("Agreement"), dated
effective as of June 7, 2006, is made among GMX RESOURCES INC., an Oklahoma
corporation (the "Borrower"), the BANKS (as defined below), CAPITAL ONE,
NATIONAL ASSOCIATION, a national banking association, as administrative agent
for the Banks (and individually as a Bank), who agree as follows:

                              PRELIMINARY STATEMENT

                  WHEREAS, the Borrower and Capital One, National Association
(under its former name Hibernia National Bank, the "Initial Bank"), are parties
to the Loan Agreement dated effective as of August 15, 2000, as amended by the
Interim Agreement dated as of November 3, 2005, and the Second Amendment thereto
dated as of December 20, 2005 (as so amended, the "Prior Loan Agreement").

                  WHEREAS, the Borrower and the Initial Bank desire to amend the
line of credit under said Prior Loan Agreement, to provide for the participation
by other banks in said line of credit on an agented credit basis, to reflect the
joinder of Union Bank of California as a Bank and an increase in the Borrowing
Base, and to permit certain subordinated borrowing by the Borrower, and in
connection therewith to amend and restate said Prior Loan Agreement in its
entirety.

                  NOW, THEREFORE, in consideration of the premises, and the
mutual agreements contained herein, the Borrower, the Initial Bank, the Agent
and the Banks do hereby (i) agree that nothing in this Amended and Restated Loan
Agreement shall constitute the satisfaction or extinguishment of the amount owed
under the revolving promissory note issued under said Prior Loan Agreement, nor
shall it be a novation of the amount owed under such revolving promissory note,
and (ii) amend and restate said Prior Loan Agreement in its entirety as follows:

                                    ARTICLE 1

                                  GENERAL TERMS

                  Section 1.1 Terms Defined Above. As used in this Agreement,
the terms "Agreement", "Borrower", "Initial Bank", and "Prior Loan Agreement"
shall have the meanings indicated above.

                  Section 1.2 Certain Definitions. As used in this Agreement,
the following terms shall have the meanings indicated (and as provided in
Section 10.14), unless the context otherwise requires:
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                  "Advances" shall mean the borrowings on the Closing Date under
                  the Loan and all or any portion of such borrowings and other
                  or subsequent reborrowings under the Loan so long as same
                  remain outstanding and unpaid.

                  "Affiliate" shall mean, with respect to a specified Person,
                  another Person that directly, or indirectly through one or
                  more intermediaries, controls or is controlled by or is under
                  common control with the Person specified (and the term
                  "control" means the possession, directly or indirectly, of the
                  power to direct or cause the direction of the management or
                  policies of a Person through the ability to exercise voting
                  power) (and the terms "controlling" and "controlled" have
                  meanings correlative thereto).

                  "Agent" shall mean Capital One, National Association in its
                  capacity as administrative agent of the Banks pursuant to
                  Article 9 and any successor administrative agent pursuant to
                  Section 9.1.

                  "Amount" shall mean thirty five million ($35,000,000.00)
                  dollars. Although the aggregate face amount of the initial
                  Notes under this Agreement is one hundred million
                  ($100,000,000.00) dollars, the Amount (and hence the
                  Commitment Limit) is acknowledged by Borrower to be a lesser
                  number, subject to one or more future increases by the Banks
                  in their sole discretion and the Borrower's request in
                  conjunction with any future increases in the Borrowing Base
                  and further bank management approvals. Such periodic increases
                  in the Amount may be made without need of formal amendment to
                  this Agreement (up to the notational amount of one hundred
                  million ($100,000,000.00) dollars), but nonetheless evidenced
                  in writing, and subject to any fees payable on the incremental
                  increased portion under Section 2.5.

                  "Applicable LIBO Rate Margin" shall have the meaning set forth
                  in the definition of "LIBO Rate".

                  "Banks" shall mean the lenders listed on Schedule 1 hereto and
                  on the signature pages of this Agreement, and their respective
                  successors and assigns in accordance with Section 9.6.

                  "Base Rate" shall mean, for any day, an interest rate per
                  annum equal to the Prime Rate in effect on such day. Without
                  notice to the Borrower, the Base Rate shall change
                  automatically from time to time as and in the amount by which
                  the Prime Rate shall

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                  fluctuate, with each such change in the Base Rate to be
                  effective as of the date of each change in the Prime Rate,
                  adjusted daily.

                  "Borrowing Base" shall mean, at any time, the dollar amount
                  calculated as the maximum loan value of the Collateral as
                  determined by the Agent, in each case with the consent of the
                  Required Banks or all the Banks, as applicable, as provided
                  below in this definition, in their sole discretion, but based
                  upon their respective customary standards and practices from
                  time to time in effect with respect to secured oil and gas
                  property lines of credit in determining the discounted present
                  value of the Collateral's production and the Borrower's cash
                  flows. Any good faith determination by the Agent and the Banks
                  of the Borrowing Base shall be final and conclusive as to the
                  Borrower. The Borrowing Base may be revised by Agent and the
                  Banks at any time to reflect changes in the Collateral or the
                  occurrence of events or economic conditions or otherwise
                  pursuant to Agent's and the Banks' customary standards and
                  practices as such exist at that particular time, and further
                  will be subject to scheduled semi-annual redeterminations
                  (approximately April 1 and October 1, starting October 1,
                  2006) during the term of this Loan. Additionally, the Borrower
                  may request once per any six month period between scheduled
                  redeterminations that an unscheduled redetermination be done
                  by Agent and the Banks, subject to Borrower's payment to Agent
                  for distribution to the Banks of a fee in accordance with
                  Section 2.5. The Agent shall notify the Borrower of the result
                  of each Borrowing Base redetermination at least fifteen (15)
                  days before its effective date. Each determination of the
                  Borrowing Base shall be effective until redetermined by the
                  Agent in accordance with this Agreement (or until the Maturity
                  Date). Such redetermination may lead to increased or decreased
                  credit availability to the Borrower under the revised
                  Borrowing Base schedule, and any increase shall be subject to
                  Banks' credit approval process. The Borrowing Base after any
                  redetermination may be subject to automatic Periodic
                  Reductions (with notice to Borrower) as provided and defined
                  in Subsection 2.4 (c). Without limiting the foregoing, the
                  Agent may exclude, in its sole and absolute discretion, any
                  property or portion of production therefrom from the Borrowing
                  Base, at any time, because title information on, or the status
                  of title to, such property is not reasonably satisfactory to
                  Agent, such property is not Collateral, the Agent's Lien
                  therein is not first and prior to all others, such property is
                  subject to contractual agreements or commitments not

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                  reasonably satisfactory to Agent, or such property is not
                  assignable. The Borrower acknowledges that the determination
                  of the Borrowing Base contains an equity cushion (market value
                  in excess of loan value), which is acknowledged by the
                  Borrower to be essential for the adequate protection of the
                  Agent and the Banks. On the Closing Date, the Borrowing Base
                  is $35,000,000.00. Thereafter, the Agent shall make a
                  preliminary redetermination of the Borrowing Base each March 1
                  and September 1 of each year (assuming timely delivery of
                  requested information from the Borrower), and otherwise at
                  such times as deemed appropriate by the Agent or the Required
                  Banks (including as may be provided by Section 3.3). The Agent
                  promptly shall notify the Banks in writing of each such
                  preliminary redetermination. Each Bank shall notify the Agent
                  in writing of either its approval or disapproval of any such
                  preliminary redetermination of the Borrowing Base within ten
                  (10) Business Days after its receipt of such notice. Each
                  re-determination of the Borrowing Base which results in an
                  increase shall require the consent of all of the Banks; each
                  other redetermination of the Borrowing Base (which results in
                  no change or a decrease) shall require the consent of the
                  Required Banks. Upon approval of all the Banks or the Required
                  Banks, as applicable, of each redetermination, the Agent shall
                  notify the Borrower as provided above.

                  "Business Day" shall mean (a) for all purposes other than as
                  covered by clause (b) of this definition, a day other than a
                  Saturday, Sunday or legal holiday for commercial banks in
                  either New Orleans, Louisiana, or New York, New York, and (b)
                  with respect to all requests, notices and determinations in
                  connection with LIBO Rate Loans, a day which is a Business Day
                  described in clause (a) of this definition and which is a day
                  for trading by and between banks for dollar deposits in the
                  London interbank market.

                  "Closing Date" shall mean the date on which the Notes are
                  executed and delivered by the Borrower to the Banks and all
                  the other conditions in Section 7.1 are met or waived
                  (temporarily or otherwise).

                  "Code" shall mean the Internal Revenue Code of 1986, as
                  amended.

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                  "Collateral" shall mean the properties and property rights
                  described in the Collateral Documents described in Section 3.1
                  as primary security for the Indebtedness.

                  "Collateral Documents" shall mean collectively the documents
                  from time to time required by the Agent and the Banks to
                  obtain the security interest in the Collateral, or otherwise
                  guarantee or secure the Indebtedness, or otherwise pertaining
                  to this Agreement (including without limitation the letter of
                  credit applications described in Subsection 2.1(f) below),
                  such documents which exist on the Closing Date being described
                  in Article 3 hereof, as all such documents are amended,
                  restated or renewed from time to time.

                  "Commitment Limit" shall mean, at any particular date, the
                  lesser of (x) the Amount (as it may be increased by the Banks
                  from time to time) or (b) the Borrowing Base as most recently
                  determined and in effect (including the effect of any Periodic
                  Reductions).

                  "Commitments" shall mean the commitments of each of the Banks
                  for the Loan set forth on Schedule 1 hereto as amended from
                  time to time.

                  "Companies" shall mean collectively, on the Closing Date, the
                  Borrower, Endeavor, and Diamond, and thereafter all such
                  Persons plus any Subsidiary formed or acquired after the
                  Closing Date, and "Company" shall mean any one of the
                  Companies.

                  "Contracts" shall mean those agreements, contracts and other
                  instruments to which the Borrower's interest in the oil, gas
                  and mineral leases comprising the Collateral are subject.

                  "Debt" shall mean any and all amounts and/or liabilities owing
                  from time to time by a Company to any Person, including any
                  Secured Party, direct or indirect, liquidated or contingent,
                  now existing or hereafter arising, including without
                  limitation (i) indebtedness for borrowed money or the deferred
                  purchase price of property; (ii) unfunded portions of
                  commitments for money to be borrowed; (iii) the amounts of all
                  standby and commercial letters of credit and bankers
                  acceptances, matured or unmatured, issued on behalf of such
                  Company, and (without duplication) all drafts drawn thereon;
                  (iv) guaranties of the obligations of any other Person,
                  whether direct or indirect, whether by agreement to purchase
                  the indebtedness of any other Person or by agreement for the
                  furnishing of funds to any other Person through the purchase
                  or

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                  lease of goods, supplies or services (or by way of stock
                  purchase, capital contribution, advance or loan) for the
                  purpose of paying or discharging the indebtedness of any other
                  Person, or otherwise; (v) indebtedness of the types described
                  above secured by any Lien on any property owned by such
                  Company, to the extent attributable to such Company's interest
                  in such property, even though such Company has not assumed or
                  become liable for the payment thereof personally; (vi) the
                  present value of all obligations for the payment of rent or
                  hire of property of any kind (real or personal) under leases
                  or lease agreements required to be capitalized under generally
                  accepted accounting principles, (vii) trade payables and
                  operating leases incurred in the ordinary course of business
                  or otherwise; (viii) Hedging Obligations; (ix) obligations of
                  such Company owing in respect of redeemable preferred stock;
                  and (x) obligations of such Company owing in connection with
                  production payments.

                  "Deed of Trust" shall mean the Texas Deed of Trust described
                  in Section 3.1(i), as amended, supplemented or restated from
                  time to time.

                  "Default" shall mean the occurrence of any of the events
                  specified in Article 8 hereof, whether or not any requirement
                  for notice or lapse of time or other condition precedent has
                  been satisfied.

                  "Default Rate" shall mean, on any particular date, the Prime
                  Rate plus five (5%) percent per annum, but in no event to
                  exceed the Maximum Rate.

                  "Diamond" shall mean Diamond Blue Drilling Co., an Oklahoma
                  corporation and a wholly owned Subsidiary of the Borrower.

                  "Diamond Note" shall mean the promissory note issued by
                  Diamond payable to the order of the Borrower, meeting the
                  requirements of and pursuant to Section 5.20.

                  "EBITDA" shall mean, for each period of four preceding fiscal
                  quarters, the sum of the Borrower's (i) net income for that
                  period, plus (ii) any extraordinary loss and other expenses
                  not considered to be operating in nature reflected in such net
                  income, minus (iii) any extraordinary gain, interest income
                  and other income not considered operating in nature reflected
                  in such net income, plus (iv) depreciation, depletion,
                  amortization and all other non-cash expenses for that period,
                  plus (v) all interest, fees, charges and

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                  related expenses paid or payable (without duplication) for
                  that period to a lender in connection with borrowed money or
                  the deferred purchase price of assets that are considered
                  "interest expense" under generally accepted accounting
                  principles, together with the portion of rent paid or payable
                  (without duplication) for that period under capital lease
                  obligations that should be treated as interest in accordance
                  with Financial Accounting Standards Board Statement No. 13,
                  plus (vi) the aggregate amount of federal and state taxes on
                  or measured by income for that period (whether or not payable
                  during that period).

                  "Endeavor" shall mean Endeavor Pipeline Inc., an Oklahoma
                  corporation, and a wholly owned Subsidiary of the Borrower.

                  "ERISA" shall mean the Employee Retirement Income Security Act
                  of 1974, as amended.

                  "Event of Default" shall mean the occurrence of any of the
                  events specified in Article 8 hereof, provided that any
                  requirement for notice or lapse of time or any other condition
                  precedent has been satisfied.

                  "Expedition" shall mean Expedition Natural Resources Inc., an
                  Oklahoma corporation, formerly a wholly owned Subsidiary of
                  the Borrower, merged into the Borrower on or about July 29,
                  2005.

                  "Hedge Agreement" shall mean any agreement or arrangement
                  providing for payments which are related to, or the value of
                  which is dependent upon, fluctuations of interest rates,
                  currency exchange rates or forward rates, or fluctuations of
                  commodity prices, including without limitation any swap
                  agreement, cap, collar, floor, exchange transaction, forward
                  agreement or exchange or protection agreement or similar
                  futures contract or swap or other derivative agreement related
                  to interest rates, currency exchange rates or hydrocarbons or
                  other commodities, or any option with respect to such
                  transaction.

                  "Hedging Obligations" of a Person shall mean any and all
                  obligations of such Person, whether absolute or contingent and
                  howsoever and whensoever created, arising or evidenced
                  (including all renewals, extensions and modifications thereof
                  and substitutions therefor), under any and all Hedge
                  Agreements and any and all cancellations, buybacks, reversals,
                  terminations or assignments of any Hedge Agreement.

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                  "Indebtedness" shall mean any and all amounts, liabilities or
                  obligations owing from time to time by the Borrower to the
                  Agent or to all or any of the Banks pursuant to this
                  Agreement, the Notes and the Collateral Documents (including
                  attorneys' fees incurred in connection with the execution,
                  enforcement or collection of the Borrower's obligations
                  hereunder or thereunder or any part thereof and all fees
                  payable in connection herewith to the Agent or to the Banks),
                  whether such amounts, liabilities or obligations be liquidated
                  or unliquidated, now existing or hereafter arising.

                  "Indemnified Parties" shall have the meaning provided in
                  Section 5.14.

                  "Intercreditor Agreement" shall mean the Intercreditor
                  Agreement among the Agent and the Banks, on the one hand, and
                  the Subordinated Holders, on the other, setting forth terms of
                  subordination substantially as set forth on Addendum II.

                  "Interest expense" shall mean, for each period, the sum of all
                  interest, fees, charges and related expenses payable (without
                  duplication) for that period to a lender in connection with
                  borrowed money or the deferred purchase price of assets that
                  are considered "interest expense" under generally accepted
                  accounting principles, plus the portion of rent paid or
                  payable (without duplication) for that period under capital
                  lease obligations that should be treated as interest in
                  accordance with Financial Accounting Standards Board Statement
                  No. 13.

                  "Issuing Bank" shall mean Capital One, National Association,
                  and any successor issuing bank pursuant to Section 9.1.

                  "Letter of Credit Sublimit" shall mean ten million
                  ($10,000,000.00) dollars.

                  "LIBO Rate" shall mean, during any Interest Period (as defined
                  below) for any Advance, an interest rate per annum equal to
                  the Reserve Adjusted LIBO Rate (as defined below) plus the
                  Applicable LIBO Rate Margin (as defined below). "Reserve
                  Adjusted LIBO Rate" shall mean with respect to each Interest
                  Period for a LIBO Rate Advance, an interest rate per annum
                  equal to the quotient (converted to a percentage, rounded
                  upward to the nearest whole multiple of 1/100 of 1% per annum)
                  of (i) the rate per annum as determined by the Agent at or
                  about 10:00 a.m. Central Time (or as soon thereafter as
                  practicable) on the second

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                  Business Day prior to the first day of each Interest Period,
                  to be the annual rate of interest for deposits in United
                  States dollars for the selected Interest Period as shown on
                  the Dow Jones Telerate Matrix page for British Bankers
                  Association Interest Settlement Rates as of two Business Days
                  prior to the first day of such Interest Period, divided by
                  (ii) the amount by which 1.00 exceeds the LIBOR Reserve
                  Requirement (as defined below), expressed as a decimal, for
                  such Interest Period. "LIBOR Reserve Requirement" shall mean
                  for any day during an Interest Period for any LIBO Rate
                  Advance, that percentage (expressed as a decimal) which is
                  specified by the Board of Governors of the Federal Reserve
                  System (or any successor) for determining the maximum reserve
                  requirement (including, but not limited to, any marginal
                  reserve requirement) for the Banks with respect to liabilities
                  consisting of or including "Eurocurrency liabilities" (as
                  defined in Regulation D of the Board of Governors of the
                  Federal Reserve System) with a maturity equal to such Interest
                  Period. In determining this percentage, the Agent may use any
                  reasonable averaging and attribution method. "Interest Period"
                  shall mean the period between the Business Day on which the
                  LIBO Rate shall begin and the day on which the LIBO Rate shall
                  end. The duration of each Interest Period for a LIBO Rate
                  Advance shall be one (1) month, two (2) months, or three (3)
                  months, at the Borrower's election, subject to the following:
                  (i) no Interest Period shall extend past the Maturity Date;
                  (ii) whenever the last day of any Interest Period would
                  otherwise occur on a day other than a Business Day, the last
                  day of such Interest Period shall be extended to occur on the
                  next succeeding Business Day, except that if the next
                  succeeding Business Day would occur in the next following
                  calendar month, the last day of such Interest Period shall be
                  shortened to occur on the next preceding Business Day; (iii)
                  whenever the first day of any Interest Period occurs on a day
                  of an initial calendar month for which there is no numerically
                  corresponding day in the calendar month that succeeds such
                  initial calendar month by the number of months in such
                  Interest Period, such Interest Period shall end on the last
                  Business Day of such succeeding calendar month; and (iv) if
                  the Borrower fails to designate an Interest Period, the
                  Interest Period for a LIBO Rate Advance (recognizing that
                  under Subsection 2.1(b) below the Banks are not obligated to
                  make such a LIBO Rate Advance in the absence of such
                  designation by the Borrower) shall be deemed to be one month
                  until a different designation is made for a subsequent
                  Interest Period. No Interest Period for a LIBO Rate Advance
                  shall have a duration of less than

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                  one month, and if any such Interest Period would otherwise be
                  a shorter period, the relevant Advance shall be a Base Rate
                  Advance during such period. The "Applicable LIBO Rate Margin"
                  shall mean the following per annum interest rate from time to
                  time, determined for each fiscal quarter by reference to the
                  Percentage Outstanding for the immediately prior fiscal
                  quarter, in accordance with the following schedule:

                                                    Applicable LIBO
                  Percentage Outstanding              Rate Margin
                  ----------------------             -------------
                  0 to 50%                               1.50%
                  above 50% to 90%                       1.75%
                  above 90%                              2.25%

                  The Applicable LIBO Rate Margin shall remain fixed during each
                  fiscal quarter of the Borrower's fiscal year, determined on
                  the first day of each fiscal quarter depending upon the
                  Percentage Outstanding for the immediately prior quarter.
                  (During the first partial quarter of this Agreement,
                  commencing on the Closing Date, the Applicable LIBO Rate
                  Margin shall be 1.50% percent.) No more than four (4) LIBO
                  Rate tranches at any one time are permitted for the Notes. The
                  Borrower will comply with the provisions of Addendum I hereto,
                  relating to the LIBO Rate, which is an integral part of this
                  Agreement. The LIBO Rate shall remain fixed for the duration
                  of the LIBO Rate Interest Period selected. The Borrower shall
                  not have the right to voluntarily prepay Advances outstanding
                  at the LIBO Rate prior to the end of the applicable LIBO Rate
                  Interest Period unless the Borrower includes payment of
                  amounts, if any, required to be paid pursuant to paragraph 6
                  of Addendum I.

                  "Lien" shall mean any interest in property securing an
                  obligation owed to, or a claim by, a Person other than the
                  owner of the property, whether such interest is based on
                  jurisprudence, statute or contract, and including but not
                  limited to the lien or security interest arising from a
                  mortgage, encumbrance, pledge, security agreement, production
                  payment, conditional sale, bond for deed or trust receipt or a
                  lease, consignment or bailment for security purposes. The term
                  "Lien" shall include reservations, exceptions, encroachments,
                  easements, servitudes, usufructs, rights-of-way, covenants,
                  conditions, restrictions, leases, and other title

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                  exceptions and encumbrances affecting property. For the
                  purposes of this Agreement, the Borrower shall be deemed to be
                  the owner of any property which it has accrued or holds
                  subject to a conditional sale agreement, financing lease or
                  other arrangement pursuant to which title to the property has
                  been retained by or vested in some other Person for security
                  purposes.

                  "Loan" shall mean the line of credit and standby letters of
                  credit as described in Article 2 hereof.

                  "Loan Excess" shall mean, at any point in time, the amount, if
                  any, by which the outstanding principal balance of the
                  Advances plus the undisbursed amount of all outstanding
                  standby letters of credit issued pursuant to this Agreement
                  exceeds the Commitment Limit then in effect.

                  "Maturity Date" shall mean the July 29, 2008, or such earlier
                  date on which the Loan is accelerated pursuant to Section 8.2
                  hereof.

                  "Maximum Rate" shall mean the maximum nonusurious interest
                  rate permitted under applicable law (determined under such
                  laws after giving effect to any items which are required by
                  such laws to be construed as interest in making such
                  determination, including without limitation if required by
                  such laws, certain fees and other costs), as such laws are
                  presently in effect, or, to the extent allowed by applicable
                  law, as such laws may hereafter be in effect and which allow a
                  higher maximum non-usurious interest rate than such laws now
                  allow.

                  "Maximum Subordinated Amount" shall mean forty five million
                  ($45,000,000.00) dollars.

                  "Notes" shall mean the promissory notes executed by the
                  Borrower, each substantially in the form of Exhibit A hereto,
                  initially dated the Closing Date (and subsequently dated on
                  the date that additional Banks become a party to this
                  Agreement), payable to the order of each Bank in the amount of
                  the Bank's Commitment, in representation of the Advances
                  available to be made under the line of credit Loan, together
                  with any and all amendments, modifications, extensions,
                  renewals, increases or rearrangements thereof or therefor.
                  (The Notes dated the Closing Date payable to the order of each
                  Bank in the amount of the Bank's Commitment as shown on
                  Schedule 1 hereto have been given in renewal and extension of
                  the indebtedness previously evidenced by

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                  that certain Line of Credit Note dated July 29, 2005, issued
                  under the Prior Loan Agreement.)

                  "Operator" shall mean each Person which is an operator of any
                  of the Borrower's properties.

                  "Patriot Act" shall have the meaning set forth in Section
                  4.22.

                  "Participation Agreement" shall mean the Participation
                  Agreement dated December 29, 2003, by and among Penn Virginia
                  Oil & Gas Corporation, the Borrower, and Expedition and
                  Endeavor, as amended by the First Amendment dated February 27,
                  2004, the Second Amendment dated March 9, 2004, the Third
                  Amendment dated April 6, 2004, the Amendment No. 4 dated
                  August 11, 2004, the Amendment No. 5 dated February 25 and
                  March 2, 2005, the Amendment No. 6 entered January 3 and 13,
                  2006, and as further amended after the Closing Date in
                  accordance with this Agreement. PVOG is the successor to Penn
                  Virginia Oil and Gas Corporation under the Participation
                  Agreement.

                  "Percentage Outstanding" shall mean, for any fiscal quarter
                  (or lesser time period as applicable), the fraction (expressed
                  as a percentage) obtained by dividing (x) the average unpaid
                  and outstanding aggregate principal balance of the Advances
                  under the Notes plus the undisbursed amount of all standby
                  letters of credit during such quarter, by (y) the average of
                  the Commitment Limit for such quarter.

                  "Periodic Reduction" shall have the meaning provided in
                  Subsection 2.4(c).

                  "Permitted Commodity Hedge" shall mean non-speculative
                  transactions in futures, forwards, swaps or option contracts
                  (including both physical and financial settlement
                  transactions), engaged in by the Borrower or any Subsidiary as
                  part of its normal business operations with the purpose and
                  effect of hedging prices as a risk management strategy or
                  hedge against adverse changes in the prices of natural gas or
                  oil (including without limitation commodity price hedges,
                  swaps, caps, floors, collars and similar agreements designed
                  to protect the Borrower or such Subsidiary against
                  fluctuations in commodity prices or any option with respect to
                  any such transaction) and not intended primarily as a
                  borrowing of funds, provided that all times: (1) no such
                  contract fixes a price for a term of more than thirty six (36)
                  months without the prior

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                  written consent of the Required Banks; (2) the aggregate
                  monthly production covered by all such contracts (considered
                  both individually and in the aggregate) by the Borrower and
                  all its Subsidiaries (determined, in the case of contracts
                  that are not settled on a monthly basis, by a monthly
                  proration acceptable to the Agent) for any single month during
                  the next six (6) month period (on a rolling basis) does not
                  exceed (x) for oil, one hundred (100%) percent of the
                  Borrower's aggregate Existing Production (as defined below) of
                  oil sold for the immediately preceding month, and (y) for gas,
                  one hundred (100%) of Borrower's aggregate Existing Production
                  of gas sold for the immediately preceding month; (3) the
                  aggregate production covered by all such contracts (considered
                  both individually and in the aggregate) by the Borrower and
                  all its Subsidiaries does not in the aggregate exceed (x) for
                  oil, seventy five (75%) percent of the Borrower's aggregate
                  Projected Production (as defined below) of oil anticipated to
                  be sold in the ordinary course of the Borrower's business for
                  the time period(s) covered by such contracts, and (y), for
                  gas, seventy five (75%) percent of the Borrower's aggregate
                  Projected Production of gas anticipated to be sold in the
                  ordinary course of the Borrower's business for the time
                  period(s) covered by such contracts; (4) no such contract
                  requires the Borrower or such Subsidiary to put up money,
                  assets, letters of credit or other security against the event
                  of its nonperformance prior to actual default by the Borrower
                  or such Subsidiary in performing its obligations thereunder,
                  other than letters of credit issued under this Agreement; and
                  (5) each such contract shall be either with any Bank or an
                  Affiliate of any Bank (without restriction as to rating), or
                  with a counterparty who (or have a guarantor of the obligation
                  of the counterparty who), at the time the contract is made,
                  has long-term obligations rated AA or Aa2 or better,
                  respectively, by Standard & Poor's Corporation or Moody's
                  Investors Services, Inc. (or a successor credit rating agency)
                  or with a counterparty otherwise approved in advance by the
                  Required Banks. As used herein, the term "Existing Production"
                  means the actual production of oil or gas (measured by volume
                  unit or BTU equivalent, not sales price), as applicable, sold
                  in the ordinary course of the Borrower's business for a
                  particular month from properties and interests owned by the
                  Borrower which are Collateral and which have attributable to
                  them proved developed oil or gas reserves as reflected in the
                  most recent engineering report delivered pursuant to
                  Subsection 5.2(c), after deducting production from any
                  properties or interests sold that had been included in such
                  report

                                      -13-
<PAGE>
                  and after adding actual production from any properties or
                  interests owned by the Borrower which have become Collateral
                  and have not been reflected in such report that are reflected
                  in a separate or supplemental report meeting requirements of
                  such Subsection 5.2(c) or otherwise satisfactory to the Agent.
                  As used herein, the term "Projected Production" means the
                  projected production of oil or gas (measured by volume unit or
                  BTU equivalent, not sales price), as applicable, for the term
                  of the contracts or a particular month, as applicable, from
                  properties and interests owned by the Borrower which are
                  Collateral and which have attributable to them proved
                  developed producing oil or gas reserves as reflected in the
                  most recent engineering report delivered pursuant to
                  Subsection 5.2(c), after deducting projected production from
                  any properties or interests sold or under contract for sale
                  that had been included in such report and after adding
                  projected production from any properties or interests owned by
                  the Borrower which have become Collateral and had not been
                  reflected in such report that are reflected in a separate or
                  supplemental report meeting requirements of such Subsection
                  5.2(c) and otherwise satisfactory to the Agent.

                  "Permitted Hedge Agreement" shall mean any Hedge Agreement
                  which is a Permitted Commodity Hedge or a Permitted Interest
                  Hedge.

                  "Permitted Hedge Obligations" shall mean any and all present
                  and future amounts, obligations and liabilities, contingent or
                  otherwise, of the Borrower and its Subsidiaries under,
                  collectively, all Permitted Commodity Hedges and all Permitted
                  Interest Hedges.

                  "Permitted Interest Hedge" shall mean any forward contract,
                  futures contract, swap, option or other financial agreement or
                  arrangement (including without limitation caps, floors,
                  collars, puts and similar agreements or any option with
                  respect to any such transaction) relating to, or the value of
                  which is dependent upon, interest rates, entered into by the
                  Borrower with one or more financial institutions or one or
                  more futures exchanges as part of its normal business
                  operations (recognizing that Borrower has not done so in the
                  past) with the purpose and effect of hedging interest rates on
                  a principal amount of the Borrower's Debt that is accruing
                  interest at a variable rate as a risk-management strategy, and
                  not for purposes of speculation and not intended primarily as
                  a borrowing of funds, and which are designed to protect the
                  Borrower against fluctuations in interest rates with respect
                  to Debt,

                                      -14-
<PAGE>
                  provided that at all times: (1) the aggregate notional amount
                  of such contracts never exceeds one hundred (100%) percent of
                  the anticipated outstanding principal balance of the Debt of
                  the Borrower to be hedged by such contracts or an average of
                  such principal balances calculated using a generally accepted
                  method of matching interest swap contracts to declining
                  principal balances; (2) the floating rate index of each such
                  contract generally matches the index used to determine the
                  floating rates of interest on the corresponding Debt of the
                  Borrower to be hedged by such contract; and (3) each such
                  contract shall be either with any Bank or any Affiliate of any
                  Bank (without restriction as to rating), or with a
                  counterparty who (or have a guarantor of the obligation of the
                  counterparty who), at the time the contract is made, has
                  long-term obligations rated AA or Aa2 or better, respectively,
                  by Standard & Poors Corporation or Moody's Investors Services,
                  Inc. (or a successor credit rating agency), or with a
                  counterparty otherwise approved in advance by the Required
                  Banks.

                  "Person" shall mean any individual, corporation, limited
                  liability company, partnership, joint venture, association,
                  joint stock company, trust, unincorporated organization,
                  government or any agency or political subdivision thereof, or
                  any other form of entity.

                  "Plan" shall mean any plan subject to Title IV of ERISA and
                  maintained by the Borrower, or any such plan to which the
                  Borrower is required to contribute on behalf of its employees.

                  "Prime Rate" shall mean, at any particular date, the prime or
                  base rate as reflected in The Wall Street Journal (or if such
                  rate is not published or is no longer available, such other
                  index satisfactory to the Agent). Without notice to the
                  Borrower, the Prime Rate shall change automatically from time
                  to time as and in the amount by which said index rate shall
                  fluctuate, with each such change in the Prime Rate to be
                  effective as of the date of each change in such index rate.
                  The Wall Street Journal index rate is a reference rate and
                  does not necessarily represent the lowest or best rate
                  actually charged to any customer by the Agent or any Bank (or
                  by such institutions comprising said index).

                  "Prior Loan Agreement" shall have the meaning provided in the
                  Preliminary Statement of this Agreement.

                                      -15-
<PAGE>
                  "Qualified Redeemable Preferred Equity" shall mean redeemable
                  preferred stock issued by the Borrower which (i) does not
                  exceed in total consideration paid to or for the account of
                  the Borrower in connection therewith, when added to the total
                  principal amount of all Qualified Subordinated Debt issued by
                  the Borrower, the Maximum Subordinated Amount, (ii) is not
                  redeemable in any part earlier than five (5) years after its
                  issuance date except only at the voluntary option of the
                  Borrower, (iii) has a stated interest or dividend rate of less
                  than ten (10%) percent per annum, (iv) sets forth covenants
                  that in the judgment of the Agent and Agent's counsel are no
                  more restrictive on the Companies and their operations and
                  affairs than the covenants contained in this Agreement, and
                  (v) is unsecured by any Liens.

                  "Qualified Subordinated Debt" shall mean Debt of Borrower to
                  any one or more Subordinated Holders which (i) does not exceed
                  in aggregate principal amount, when added to the total
                  consideration paid to or for the account of the Borrower in
                  connection with all Qualified Redeemable Preferred Equity
                  issued by the Borrower, the Maximum Subordinated Amount, (ii)
                  has a maturity date of greater than one year after the
                  Maturity Date, (iii) sets forth covenants that in the judgment
                  of the Agent and Agent's counsel are no more restrictive on
                  the Companies and their operations and affairs than the
                  covenants contained in this Agreement, and (iv) is
                  subordinated to the Indebtedness and the Secured Hedge
                  Obligations both as to payment and as to liens and collateral
                  pursuant to a written Intercreditor Agreement in favor of and
                  satisfactory to the Agent and the Banks duly authorized and
                  executed by each applicable Subordinated Holder.

                  "Required Banks" shall mean Banks in the aggregate holding at
                  least sixty-six and two-thirds (66 2/3%) percent of the
                  aggregate unpaid principal amount of the Notes (or if no
                  Advances are outstanding then 66 2/3% of the aggregate
                  Commitments).

                  "PVOG" shall mean Penn Virginia Oil & Gas, L.P., a wholly
                  owned subsidiary of Penn Virginia Corporation.

                  "PVOG Production Payment" shall mean the dollar denominated
                  production payment purchased by PVOG from the Borrower in the
                  original amount of $2,233,435.76, repayable solely from 75% of
                  the Borrower's share of production revenues from only four
                  certain wells (Bryant #2, Bryant #3, Richardson #3 and Scott
                  #1), without

                                      -16-
<PAGE>
                  interest. On March 31, 2006, the balance owed was
                  $1,929,613.43.

                  "Secured Hedge Agreements" shall mean all Hedging Agreements,
                  whether now in existence or hereafter arising, which establish
                  Secured Hedge Obligations by the Borrower or any Subsidiary in
                  favor of a Secured Hedge Provider.

                  "Secured Hedge Obligations" shall mean any Permitted Hedge
                  Obligations of the Borrower or any Subsidiary owing to any one
                  or more of the (present and future) Secured Hedge Providers,
                  and includes the due performance and compliance by the
                  Borrower or any Subsidiary with all the terms, conditions and
                  agreements contained in the Secured Hedge Agreement pertaining
                  thereto.

                  "Secured Hedge Provider" shall mean any one or more of the
                  (present and future) Banks under this Agreement, or any
                  Affiliate of such Bank which is a party to one or more Secured
                  Hedge Agreements with the Borrower or any Subsidiary, so long
                  as any such Bank is a "Bank" under this Agreement at the time
                  such Secured Hedge Obligation is entered into with such Bank
                  or Affiliate of such Bank (even if such Bank subsequently
                  ceases to be a "Bank" under this Agreement for any reason).

                  "Secured Liabilities" shall mean collectively the Indebtedness
                  and the Secured Hedge Obligations.

                  "Secured Parties" shall mean the Agent, the Banks and the
                  Secured Hedge Providers.

                  "Shared Collateral" shall have the meaning provided in Section
                  3.4.

                  "Subordinated Holder" shall mean each Person which is owed any
                  portion of Qualified Subordinated Debt.

                  "Subsidiary" shall mean each corporation of which the Borrower
                  owns, directly or indirectly, fifty percent or more of the
                  outstanding capital stock, and each partnership, limited
                  liability company or other Person of which the Borrower owns,
                  directly or indirectly, fifty percent (50%) or more of the
                  outstanding partnership, membership or other ownership or
                  voting interest.

                                      -17-
<PAGE>
                  Section 1.3 Accounting Terms. Unless otherwise specified
herein, all accounting terms used herein shall be interpreted, all accounting
determinations hereunder shall be made, and all financial statements required to
be delivered hereunder shall be prepared in accordance with generally accepted
accounting principles as in effect from time to time (except for changes in
accounting principles or practice approved by independent certified public
accountants for the Borrower) on a basis consistent with the most recent
financial statements of the Borrower.

                                    ARTICLE 2

                                   THE CREDIT

                  Section 2.1 Line of Credit and Letters of Credit. (a) Line of
Credit. Subject to and upon the terms and conditions contained in this
Agreement, and relying on the representations and warranties contained in this
Agreement, on the Closing Date each Bank, severally, agrees to make a revolving
line of credit available to the Borrower in the maximum aggregate principal
amount equal to such Bank's Commitment set forth in Schedule I hereto. The
aggregate amount of all Advances, plus the face amount of all standby letters of
credit permitted to be issued under this Agreement, cannot exceed the Commitment
Limit. The line of credit is represented by the Notes in the aggregate principal
amount of one hundred million ($100,000,000.00) dollars, payable to the order of
the Banks. Principal and all accrued and unpaid interest on the line of credit
shall be payable in full on the Maturity Date, after which no further Advances
will be made. Payments may be debited from the Borrower's accounts with the
Agent as provided in this Agreement.

                  (b) Interest. The interest rate applicable to each Loan
Advance beginning on the date such Advance is made shall be either (i) the Base
Rate, adjusted daily, or (ii) the LIBO Rate, adjusted on the first day of each
LIBO Rate Interest Period and remaining fixed for the duration of the LIBO Rate
Interest Period, selected at the Borrower's option by written notice to Agent in
accordance with the terms hereof, but in no event shall the interest rate
applicable to any Loan Advance exceed the Maximum Rate. Effective on the first
day following the end of any LIBO Rate Interest Period, the Borrower may from
time to time change the interest rate which is to apply to the Advances or a
portion thereof (including any yet to be made Advance which is made on the
effective date of the interest rate change) by notifying the Agent of the
Borrower's desire to change the interest rate not less than three (3) Business
Days prior to the date on which such change shall be effective. No more than
four (4) LIBO Rate tranches and one Base Rate tranche (all Base Rate Advances
constituting one tranche) shall be permitted for the Notes at any one time. In
the absence of any timely specific interest rate election by the Borrower (as
provided above in this Subsection 2.1(b) and in the definition of LIBO Rate),
unless otherwise agreed by the Agent, an Advance (if outstanding as a LIBO Rate
Advance) will be automatically converted into a Base Rate Advance on the last
day of the then current LIBO Rate Interest Period for such Advance or (if not
then outstanding) an Advance shall bear interest at the Base Rate. The Borrower
further will comply with the provisions of Addendum I hereto,

                                      -18-
<PAGE>
relating to the LIBO Rate, which is an integral part of this Agreement. Interest
on the Notes shall be payable (x) on Advances bearing interest at the Base Rate
monthly in arrears on the last day of each month, and (y) on LIBO Rate Advances
on the last day of each applicable LIBO Rate Interest Period for each LIBO Rate
Advance. Interest on (i) Base Rate Advances and all other Indebtedness except
for LIBO Rate Advances shall be calculated on the basis of a 365 (or in a leap
year 366) day year and the actual number of days elapsed, and (ii) on LIBO Rate
Advances shall be calculated on the basis of a 360-day year by applying the
ratio of the annual interest rate over a year of 360 days, times the applicable
principal balance, times the actual number of days such applicable principal
balance is outstanding. Payments may be debited from the Borrower's accounts
with the Agent as provided in this Agreement. The Maximum Rate shall be
calculated based on a 365-day or 366-day year, as is applicable.

                  (c) Draw Requests. In accordance with the provisions in this
Section, the Banks will make Advances to the Borrower from time to time on any
Business Day on and after the Closing Date until and including the last Business
Day before the Maturity Date in such amounts as the Borrower may request, up to
the Commitment Limit, and the Borrower may make borrowings, repayments and
reborrowings in respect thereof. Requests for Advances must be made by written
notice from the Borrower sent to the Agent by mail, courier or facsimile in
accordance with Section 10.1, specifying the amount of the Advance, subject to
Section 2.12. A request shall be fully authorized by the Borrower if made by any
one of Ken Kenworthy Sr. or Ken Kenworthy Jr. or other individual designated by
the Borrower as an authorized person in accordance with resolutions of the Board
of Directors of the Borrower certified to the Agent. The Agent and the Banks may
rely fully and completely upon the authority of the signatory of such request or
confirmation unless such authority is terminated by written notice to the Agent,
and any such termination shall be effective only prospectively. The request for
any Advance by the Borrower shall constitute a certification by the Borrower
that all of the representations and warranties contained in Article 4 (other
than those representations and warranties, if any, that are by their specific
terms limited in application to a specific date) are true and correct as of the
date of such request and also as of the date of the Advance.

                  (d) Timing. Requests for Advances at the Base Rate shall be
made on written notice from the Borrower to the Agent, received by the Agent no
later than 10:00 a.m. (Central Time) on the first Business Day before such Base
Rate Advance specifying the amount thereof. Request for Advances at the LIBO
Rate shall be made on written notice from the Borrower to the Agent received by
the Agent no later than 11:00 a.m. (Central Time) on the third (3rd) Business
Day before such LIBO Rate Advance, specifying the amount thereof (including the
amount of each tranche, if more than one) and the LIBO Rate Interest Period (or
Interest Periods, if more than one tranche). Each such written notice by the
Borrower shall be irrevocable by the Borrower. The Agent shall promptly give
each Bank notice of such proposed Advance.

                  (e) Funding. Not later than 12:00 noon (Central Time) on the
date of any Advance, each of the Banks shall make available to the Agent, in
immediately available funds, the amount of such Bank's prorata portion (i.e.,
the percentage of its Commitment as compared

                                      -19-
<PAGE>
to the aggregate of the Commitments) of the amount of the requested Advance.
Upon receipt from each Bank of such amount, and upon fulfillment of the
applicable conditions set forth in this Agreement in Article 7, the Agent (on
behalf of the Banks) will make available to the Borrower the aggregate amount of
such Advance in accordance with the further terms of this Section 2.1. The
failure or refusal of any Bank to make available to the Agent at the aforesaid
time and place on any date of an Advance the amount of its portion of the
requested Advance shall not relieve any other Bank from its several obligation
hereunder to make available to the Agent the amount of such other Bank's portion
of any requested Advance (but no Bank shall be responsible for the failure of
any Bank to make available to the Agent such other Bank's portion of any
requested Advance).

                  The Agent may, unless notified to the contrary by any Bank
prior to the date of an Advance, assume that each Bank has made available to the
Agent on such date of the applicable Advance the amount of each Bank's portion
of the Advance to be made on such date, and the Agent shall, in reliance upon
such assumption, make available to Borrower a corresponding amount. If any Bank
makes available to the Agent such amount on a date after the date of the
applicable Advance, such Bank shall pay to the Agent on demand an amount equal
to the product of (i) the average computed for the period referred to in clause
(iii) below, of the weighted average interest rate paid by the Agent for federal
funds acquired by the Agent during each day included in such period, times (ii)
the amount of such Bank's portion of such Advance, times (iii) a fraction, the
numerator of which is the number of days that elapse from and including such
date of the Advance to the date on which the amount of such Bank's portion of
such Advance shall become immediately available to the Agent, and the
denominator of which is 365; provided, that if such Bank has not paid to the
Agent such Bank's portion of the Advance by 12:00 noon (Central Time) on the
third (3rd) Business Day after the Advance was made to the Borrower, then the
interest rate in clause (i) above shall be the Prime Rate (adjusted daily) from
and after such second (2nd) Business Day after the Advance was made until and
including the date such Bank makes available to the Agent such Bank's portion of
the Advance; provided, further, that if such Bank has not paid to the Agent such
Bank's portion of the Advance by 12:00 noon (Central Time) on the fifth (5th)
Business Day after the Advance was made to Borrower, then the interest rate in
clause (i) above shall be the Prime Rate (adjusted daily) plus three (3.0%)
percent per annum from and after such fifth (5th) Business Day after the Advance
was made until and including the date such Bank makes available to the Agent
such Bank's portion of the Advance. A statement of the Agent submitted to each
Bank with respect to any amounts owing under this paragraph shall be prima facie
evidence of the amount due and owing to the Agent by such Bank. If any Bank
fails to pay to Agent its portion of any Advance within thirty (30) days after
an Advance or if any Bank twice fails to timely make its portion of Advances to
be made to the Borrower available to the Agent before 12:00 noon (Central Time)
on the dates Advances are made to the Borrower (counting failures in
reimbursement under Subsection 2.1(g) as a failure hereunder), then, if
requested to do so by the Borrower or any other Bank or the Agent, such Bank
shall sell all of its interests, rights and obligations under this Agreement
(including all of its Commitment and its portion of the Loan at the time owing
to it) and the Note held by it to

                                      -20-
<PAGE>
another Bank or bank under Section 9.6 hereof, provided such a willing,
qualified assignee is identified by the requesting party.

                  Not later than 3:00 p.m. (Central Time) on the date properly
and timely requested for the Advance and upon fulfillment of the applicable
conditions set forth in Article 7 of this Agreement, the Agent will make such
Advance available to the Borrower in same day funds in the account maintained by
the Borrower with the Agent and the credit advice resulting therefrom shall be
mailed by the Agent to the Borrower. The Borrower irrevocably agrees that the
deposit of the proceeds of any Advance in any account of Borrower with the
Agent, or the Agent's copy of any cashier's check representing all or any part
of the proceeds of the disbursements, shall be deemed prima facie evidence of
the Borrower's Indebtedness to the Banks under the Loan.

                  (f) Minimum. Notwithstanding anything in this Agreement to the
contrary, the aggregate principal amount of all LIBO Rate Advances having the
same LIBO Rate Interest Period shall be at least equal to $100,000.00; and if
any LIBO Rate tranche would otherwise be in a lesser principal amount for any
period, such tranche shall bear interest at the Base Rate during such period.

                  (g) Letters of Credit. As a portion of the line of credit
availability up to the Letter of Credit Sublimit (and subject to the Borrowing
Base and the other terms and conditions contained in this Agreement), the
Issuing Bank will issue standby letters of credit for the account of the
Borrower (including for the commercial needs of any one or more of the
Borrower's wholly-owned Subsidiaries from time to time in existence, so long as
such entity is wholly owned directly or indirectly) from time to time. The
expiration of such letters of credit shall be on a Business Day not later than
one year after issuance, and further shall not extend beyond the Maturity Date
of the line of credit. The expiration date of a letter of credit may not be
extended on or after the Maturity Date and no letter of credit may be renewed,
replaced or increased on or after the Maturity Date. The Borrower shall pay to
the Agent, for disbursement to the Banks in accordance with Subsection 9.1(a)
except as provided in the next sentence, a fee for each standby letter of credit
on the issuance date at the per annum rate equal to the Applicable LIBO Rate
Margin then in effect on the face amount of the letter of credit for the period
from the date of issuance to the expiration date, payable quarterly in arrears
on each June 30, September 30, December 31 and March 31 (and on the Maturity
Date). From the fee for each standby letter of credit the Agent shall retain as
a fronting fee, for its own account as letter of credit Issuing Bank,
one-quarter of one (0.25%) percent on the face amount (i.e., the first 0.25% of
the Applicable LIBO Rate Margin). The Borrower also shall pay to the Agent, for
the account solely of the Issuing Bank, additional amounts customarily charged
by the Issuing Bank for the issuance and processing of letters of credit. Each
letter of credit shall be issued not later than the close of the Issuing Bank's
business (Central Time) on the third (3rd) Business Day after receipt (including
by facsimile pursuant to Section 10.1 hereof) by the Issuing Bank of the
Borrower's written application in substantially the form of the Issuing Bank's
then standard Application for Irrevocable Standby Letter of Credit and Letter of
Credit Agreement, executed by the Borrower (by any one of the persons designated
by the Borrower in writing to the Agent in accordance

                                      -21-
<PAGE>
with the terms of Subsection 2.1(d) below). Such application and agreement shall
be Collateral Documents under this Agreement, supplemental to and not in
replacement of this Agreement and the other Collateral Documents, provided that
in the event of a conflict between such application and agreement and this
Agreement then this Agreement shall prevail (even if such application or
agreement is executed later). In the event such written application is
telecopied to the Issuing Bank, the Issuing Bank may but need not confirm such
application before acting thereupon. The Issuing Bank may rely fully and
completely upon the authority of the signatory of such written application and
the contents thereof unless such authority is terminated by written notice to
the Issuing Bank, and any such termination of authority shall be effective only
prospectively. Such letters of credit will be documented on the Issuing Bank's
standard forms. No letter of credit will be issued (x) if the face amount
thereof plus the aggregate undisbursed amount of all standby letters of credit
then outstanding would exceed the Letter of Credit Sublimit, or (y) if the face
amount thereof plus the aggregate of all Advances then outstanding plus the
aggregate undisbursed amount of all standby letters of credit then outstanding
would exceed the Commitment Limit. Payment by the Issuing Bank of a draw on a
standby letter of credit, if not reimbursed in full on the same day by the
Borrower, automatically (notwithstanding the limitation in Subsection 2.1(a)
above) shall be an Advance as a part of the Loan bearing interest from the date
of such draw at the Prime Rate. Upon its issuance of any such letter of credit,
the Issuing Bank shall promptly notify each other Bank of such issuance.
Immediately upon the issuance by the Issuing Bank of any letter of credit, the
Issuing Bank shall be deemed to have sold and transferred to each other Bank and
each such other Bank shall be deemed irrevocably and unconditionally to have
purchased and received from the Issuing Bank, without recourse or warranty, an
undivided interest and participation in such letter of credit, each drawing made
thereunder and the obligations of the Borrower under this Agreement with respect
thereto, and any security therefor or guaranty pertaining thereto. The amount of
such other Bank's participation shall be such other Bank's prorata portion
(i.e., such Bank's Commitment as compared to the aggregate of the Commitments).

                  In the event that the Issuing Bank makes any payment under any
letter of credit and the Borrower shall not have reimbursed such amount in full
to the Issuing Bank on the date of such payment, the Issuing Bank shall promptly
notify the Agent, which shall promptly notify each other Bank of such failure,
and each other Bank shall promptly and unconditionally pay to the Issuing Bank
the amount of such other Bank's prorata portion (i.e., such Bank's Commitment as
compared to the aggregate of the Commitments) of such unreimbursed payment in
immediately available funds. If the Agent so notifies, prior to 11:00 a.m.
(Central Time) on any Business Day, each Bank shall make such payment on such
Business Day. The failure or refusal by any Bank to make reimbursement to the
Issuing Bank at the aforesaid time and place in the amount of its portion of
such reimbursement shall not relieve any other Bank from its several obligation
hereunder to make reimbursement to the Issuing Bank in the amount of such other
Bank's portion of such requested reimbursement (but no Bank shall be responsible
for the failure of any Bank to make reimbursement to the Issuing Bank of such
other Bank's portion of such requested reimbursement). If any Bank makes
reimbursement to the Issuing Bank of such amount on a date after the aforesaid
date for reimbursement, such Bank shall pay to the Issuing

                                      -22-
<PAGE>
Bank on demand an amount computed on the basis set forth in Subsection 2.1(e)
above (substituting such reimbursement due date for the Advance Date), which
Subsection 2.1(e) shall be fully applicable to such failure.

                  The obligations of the other Banks to make reimbursement
payments to the Issuing Bank with respect to letters of credit issued by it
shall be irrevocable and not subject to any qualification or exception
whatsoever. In determining whether to pay under any letter of credit, the
Issuing Bank shall have no obligation relative to the other Banks other than to
confirm that any documents required to be delivered under such Letter of Credit
appear to have been delivered and that they appear to comply on their face with
the requirements of such letter of credit. Any action taken or omitted to be
taken by the Issuing Bank under or in connection with any letter of credit if
taken or omitted in the absence of gross negligence or willful misconduct shall
not create for the Issuing Bank any resulting liability to the Borrower or any
Bank.

                  Letters of credit issued under the Prior Loan Agreement and
still outstanding on the Closing Date shall hereafter be counted under and
governed by this Agreement.

                  Section 2.2 Business Days. If the date for any payment,
prepayment, Periodic Reduction, or fee payment hereunder falls on a day which is
not a Business Day, then for all purposes of this Agreement (unless otherwise
provided herein) the same shall be deemed to have fallen on the next following
Business Day, and such extension of time shall in such case be included in the
computation of payments of interest.

                  Section 2.3 Payments. The Borrower shall make each payment
hereunder and under the Notes and any Collateral Documents in lawful money of
the United States of America in same day funds to the Agent at its main office
in New Orleans, Louisiana, not later than 11:00 a.m. (Central Time) on the day
when due, or such other place in the United States as designated in writing by
the Agent. The Agent shall promptly send to each Bank by federal wire transfer
its respective proportionate share of all amounts to which the Banks are
entitled in accordance with Subsection 9.1(a). The Borrower hereby authorizes
the Agent to charge from time to time against the Borrower's accounts with the
Agent any amount which is then so due, and acknowledges that such accounts will
be established for that purpose (among other purposes) under Section 5.16 and
Section 5.17 and may be so used even in the absence of an Event of Default.

                  Section 2.4 Prepayment. (a) Voluntary. The Borrower may prepay
the Loan in full or in part at any time without payment of premium or penalty;
provided, however, that (i) the Borrower shall give the Agent notice of each
such prepayment of all or any portion of a LIBO Rate Advance no less than three
(3) Business Days prior to prepayment, (ii) any LIBO Rate Advance may be prepaid
only on the last day of the Interest Period for such LIBO Rate Advance, unless
the Borrower includes payment of amounts, if any, required to be paid pursuant
to paragraph 6 of Addendum I, (iii) the Borrower shall give the Agent notice of
each such prepayment of all or any portion of a Base Rate Advance no less than
one (1) Business Day prior

                                      -23-
<PAGE>
to prepayment, (iv) the Borrower shall pay all accrued and unpaid interest on
the amounts prepaid, and (v) no such prepayment shall serve to postpone the
repayment when due of any other Indebtedness. Each such notice of a prepayment
under this Section shall be irrevocable and the amounts specified in each such
notice shall be due and payable on the date specified. Upon receipt of such
notice, the Agent shall promptly notify each Bank thereof. Each partial
prepayment shall be in an aggregate principal amount of (x) $100,000.00 or an
integral multiple of $50,000.00 in excess thereof or (y) if the outstanding
principal balance of the Loan is less than the minimum amount set forth in the
preceding clause (i) of this sentence, then such lesser outstanding principal
balance, as the case may be.

                  (b) Mandatory. The Agent shall notify the Borrower of the
result of each Borrowing Base redetermination in accordance herewith. If at any
time the Agent determines that a Loan Excess exists, then within ninety (90)
days of receipt by the Borrower of notice of such Loan Excess the Borrower shall
(x) prepay the Advances (together with accrued interest on the amount to be
prepaid to the date of payment) in an amount sufficient to reduce the Advances
plus the face amount of all standby letters of credit then outstanding to the
then Commitment Limit, and/or (y) execute, deliver and record or cause to be
executed and delivered such additional Collateral Documents pursuant to Section
3.1, sufficient to induce the Agent and the Banks to make an increased
redetermination of the Borrowing Base to an amount not less than the outstanding
principal balance of the Advances plus the face amount of all standby letters of
credit then outstanding. The Borrower specifically acknowledges that no
additional grace period (beyond the period stated in the preceding sentence) is
applicable under this Agreement to any failure to make such mandatory prepayment
before such failure is an Event of Default hereunder.

                  (c) Periodic Reductions in Borrowing Base. As part of a
Borrowing Base redetermination, the Agent may include as part of the Borrowing
Base an automatic reduction schedule, monthly or quarterly, in an amount
determined by the Agent in its sole discretion, but based upon the Agent's
customary standards and practices from time to time in effect with respect to
secured oil and gas property lines of credit, and with the approval of the
Required Banks. Such automatic reductions, each in the amounts so determined and
so scheduled (each a "Periodic Reduction"), shall cause an automatic reduction
to the Borrowing Base on the dates set in the schedule so determined by the
Agent, which shall be the last day of a month or quarter. Each reduction to the
Borrowing Base by a Periodic Reduction shall be permanent, subject to any
increase agreed to as part of a subsequent Borrowing Base redetermination. As
part of the notification by the Agent to the Borrower of the result of a
Borrowing Base redetermination, the Agent shall notify the Borrower of the terms
and schedule of any Periodic Reductions included therein. Notwithstanding the
foregoing provisions of Subsection 2.4(b), the Borrower shall pay the amount of
any Loan Excess that results from the application of each Periodic Reduction to
the Borrowing Base on the day that such Periodic Reduction takes effect. The
Borrower specifically acknowledges that the ninety (90) day grace period set
forth in Subsection 2.4(b) pertaining to a Loan Excess resulting from a
Borrowing Base redetermination is not applicable to any failure to make such
mandatory prepayment triggered by a Loan Excess due to a Periodic Reduction as
provided in this Subsection 2.4(c). However, any changes in the Periodic

                                      -24-
<PAGE>
Reduction schedule shall not increase the amount of a Periodic Reduction which
is to take effect sooner than ninety (90) days after the effective date of that
Borrowing Base redetermination which includes such change in the Periodic
Reduction schedule as a part thereof. On the Closing Date the Periodic Reduction
in effect is a $1,500,000.00 quarterly reduction on June 30, 2006, and in the
same amount on the last day of each calendar quarter thereafter, subject to
waiver or change in the amount or schedule as part of a subsequent Borrowing
Base redetermination.

                  Section 2.5 Fees. (a) The Borrower shall pay on the Closing
Date an upfront commitment/origination fee equal to thirty five thousand
($35,000.00) dollars, being one-quarter of one percent (0.25%) percent of UBOC's
portion of the Borrowing Base ($14,000,000.00. This upfront fee, in this sole
instance, shall be paid entirely to the new Bank (Union Bank of California) in
consideration of its new participation in the Loan. (Upfront fees in connection
with future increases in availability under the Loan shall be paid and divided
pro rata among the Banks as provided below in Subsection 2.5(f).) Further, the
Borrower shall pay the Initial Bank, for its own account, on the Closing Date an
unused facility fee under the Prior Loan Agreement in an amount equal to
one-quarter of one percent (0.25%) per annum on (x) the Commitment Limit under
the Prior Loan Agreement less (y) the average outstanding aggregate principal
balance under the Advances under the Prior Loan Agreement plus the undisbursed
amount of all standby letters of credit outstanding, during the period from
April 1, 2006 through the Closing Date.

                  (b) The Borrower shall pay the Agent, for disbursement in
accordance with Subsection 9.1(a) hereof to the Banks, an unused facility fee
quarterly in arrears beginning June 30, 2006 (for the period from the Closing
Date through such date) and on the last day of each succeeding September,
December, March and June and on the Maturity Date of the Loan, in an amount
equal to one-quarter of one percent (0.25%) per annum on (x) the Commitment
Limit less (y) the average outstanding aggregate principal balance of the
Advances under the Notes plus the undisbursed amount of all standby letters of
credit then outstanding during such quarter (or lesser time period, as
applicable.)

                  (c) Letter of credit fees are owed and paid as provided in
Subsection 2.1(g).

                  (d) The Borrower shall pay to the Agent, for its own account,
such fees as are agreed to in a separate agreement between the Borrower and the
Agent with respect to the Agent's services provided hereunder and in connection
herewith.

                  (e) The Borrower shall pay the Agent, for disbursement to the
Banks (equally, not pro rata), a Borrowing Base redetermination fee in the
amount equal to $7,500.00 for each Bank for each unscheduled redetermination
requested by the Borrower at the time of such request. (For the avoidance of
doubt, the Agent receives one fee under this subsection in its capacity as a
Bank, but not as Agent.)

                  (f) The Borrower acknowledges that any subsequent increases in
the Commitment Limit after the Closing Date (which will require the Borrower's
and the Banks'

                                      -25-
<PAGE>
unanimous mutual agreement) shall be subject to the payment of an appropriate
upfront commitment fee, not to exceed one-quarter of one percent (0.25%),
determined by the Banks on the incremental increased portion of the new
Commitment Limit in excess of its previous highest level.

                  (g) All fees shall be paid on the dates due in immediately
available funds. Fees paid shall not be refundable under any circumstances.

                  Section 2.6 Use of Proceeds. The Borrower shall use the
proceeds of the Loan (i) in connection with the acquisition and development of
oil and gas properties as well as general corporate and working capital purposes
(including letters of credit hereunder) and (ii) to loan funds under the Diamond
Note to Diamond in accordance with Section 5.20 and Section 6.3(h).

                  Section 2.7 Default Rate. Anything in the Notes or in any
other agreement, document or instrument to the contrary notwithstanding,
effective upon an Event of Default or upon the Maturity Date, the Agent and the
Required Banks shall have the right to prospectively increase the interest rate
under the Notes to the Default Rate until the Notes are paid in full. Upon the
acceleration of the principal amount of the Indebtedness represented by the
Notes, the accelerated principal balance of the Loan shall bear interest from
the date of acceleration up to the actual payment (as well after as before
judgment) at the Default Rate. All such interest at the Default Rate shall be
payable upon demand.

                  Section 2.8 Additional Regulatory Costs. If any governmental
authority, central bank, or other comparable authority shall at any time impose,
modify or deem applicable any reserve (including without limitation any imposed
by the Board of Governors of the Federal Reserve System), special deposit or
similar requirement against assets of, deposits with or for the account of, or
credit extended by, the Agent or any Bank, or shall impose on the Agent or any
Bank any other condition affecting an Advance or the obligation of the Agent or
any Bank to make an Advance; and the result of any of the foregoing is to
increase the cost to the Agent or such Bank of making or maintaining the
Advances to the Borrower, or to reduce the amount of any sum received or
receivable by the Agent or any Bank under this Agreement or under the Notes by
an amount deemed by the Agent or such Bank to be material, then, within sixty
(60) days after demand by the Agent or such Bank, the Borrower shall pay to the
Agent or such Bank, for its own account, such additional amount or amounts as
will compensate the Agent or such Bank for such increased cost or reduction. The
Agent or such Bank will promptly notify the Borrower of any event of which it
has knowledge, occurring after the date hereof, which will entitle the Agent or
such Bank to compensation pursuant to this Section. A certificate of the Agent
or such Bank claiming compensation under this Section and setting forth the
additional amount or amounts to be paid to it hereunder shall be conclusive in
the absence of manifest error.

                  Section 2.9 Application of Payments to Indebtedness. Payments
made under this Agreement, the Notes or the Collateral Documents, whether made
when due or after

                                      -26-
<PAGE>
foreclosure on Collateral, for application to the Indebtedness shall be applied
to the Indebtedness as follows:

                  (i)   To the Agent, with respect to fees and expenses accrued
                  and outstanding (including without limitation reasonable
                  attorneys' fees and expenses);

                  (ii)  To the Banks, ratably according to their Commitments,
                  with respect to fees, expenses and late charges accrued and
                  outstanding;

                  (iii) To the Banks, ratably according to their Commitments,
                  with respect to interest accrued and outstanding; and

                  (iv)  To the Banks, ratably according to their Commitments,
                  with respect to principal amounts of the Loan due and payable.

Payments made pursuant to realization under the Collateral Documents are also
subject to the Section 3.4.

                  Section 2.10 Sharing of Payments among Banks. If any Bank,
whether by setoff or otherwise, has payment made to it upon its portion of the
Loan, other than pursuant to Section 2.8 or Addendum 1, in a greater proportion
than that received by any other Bank, such Bank agrees, promptly upon demand, to
purchase a portion of the Loan held by the other Banks so that after such
purchase each Bank will hold its ratable proportion of the Loan. If any Bank,
whether in connection with setoff or amounts which might be subject to setoff or
otherwise, receives collateral or other protection for its Indebtedness or such
amounts which may be subject to setoff, such Bank agrees, promptly upon demand,
to take such action necessary such that all Banks share in the benefits of such
Collateral ratable in proportion to their Commitment. In case any such payment
is disturbed by legal process, or otherwise, appropriate further adjustment
shall be made. However, nothing in this Section 2.10 is intended, or shall be
construed, to amend the provisions of or alter the application of Section 3.4.

                  Section 2.11 Hedge Agreement Quotes. Upon the Borrower's
request from time to time, the Agent will provide to Borrower interest rate swap
quotes for interest rate Hedge Agreements pertaining to the Loan, not to exceed
the Amount or the Maturity Date.

                  Section 2.12 Telephonic or Electronic Notice to Agent. Without
in any way limiting the obligation of the Borrower to confirm in writing any
telephonic notice of borrowing or the like given to the Agent, the Agent may act
without liability upon the basis of telephonic notice of such request believed
by the Agent in good faith to be from an authorized officer of the Borrower
prior to receipt of written confirmation. In each such case, the Agent's records
with regard to any such telephone notice shall be presumptive correct, absent
manifest error. Additionally, the Borrower may transmit notices of borrowing or
letter of credit requests or the like by electronic communication, if
arrangements for doing so have been approved by the Agent.

                                      -27-
<PAGE>
                  Section 2.13   Lost Interest Recapture; Usury Savings.

                  (i) If, with respect to the Banks, the effective rate of
interest contracted for under this Agreement, the Notes and the Collateral
Documents (the "Loan Documents"), including the stated rates of interest and
fees contracted for hereunder and any other amounts contracted for under the
Loan Documents which are deemed to be interest, at any time exceeds the Maximum
Rate, then the outstanding principal amount of the loans made by the Banks
hereunder shall bear interest at a rate which would make the effective rate of
interest for the Banks under the Loan Documents equal the Maximum Rate until the
difference between the amounts which would have been due at the stated rates and
the amounts which were due at the Maximum Rate (the "Lost Interest") has been
recaptured by the Banks.

                  (ii) If, when the loans made hereunder are repaid in full, the
Lost Interest has not been fully recaptured by a Bank pursuant to the preceding
paragraph, then, to the extent permitted by law, for the loans made hereunder by
such Bank the interest rates charged under Section 2.1 hereunder shall be
retroactively increased such that the effective rate of interest under the Loan
Documents was at the Maximum Rate since the effectiveness of this Agreement to
the extent necessary to recapture the Lost Interest not recaptured pursuant to
the preceding sentence and, to the extent allowed by law, the Borrower shall pay
to such Bank the amount of the Lost Interest remaining to be recaptured by such
Bank.

                  (iii) NOTWITHSTANDING THE FOREGOING OR ANY OTHER TERM IN THIS
AGREEMENT AND THE LOAN DOCUMENTS TO THE CONTRARY, IT IS THE INTENTION OF THE
BANKS AND THE BORROWER TO CONFORM STRICTLY TO ANY APPLICABLE USURY LAWS.
ACCORDINGLY, IF A BANK CONTRACTS FOR, CHARGES, OR RECEIVES (INCLUDING WITHOUT
LIMITATION FOLLOWING ACCELERATION OR PREPAYMENT) ANY CONSIDERATION WHICH
CONSTITUTES INTEREST IN EXCESS OF THE MAXIMUM RATE, THEN ANY SUCH EXCESS SHALL
BE CANCELED AUTOMATICALLY WITHOUT THE NECESSITY OF THE EXECUTION OF ANY NEW
DOCUMENT AND, IF PREVIOUSLY PAID, SHALL AT SUCH BANK'S OPTION BE APPLIED TO THE
OUTSTANDING AMOUNT OF THE LOAN MADE HEREUNDER BY SUCH BANK OR BE REFUNDED TO THE
BORROWER.

                  (iv) All sums paid or agreed to be paid to Banks for the use,
forbearance or detention of the Indebtedness shall, to the extent permitted by
applicable law, be amortized, prorated, allocated and spread throughout the full
term of the Indebtedness until payment in full so that the rate or amount of
interest on account of the Indebtedness does not exceed the applicable usury
limit allowed by applicable law through the full term hereof.

                  Section 2.14 Business Loans. The Borrower warrants and
represents that the Loan and Advances evidenced by the Notes are and shall be
for business, commercial, investment, or other similar purposes and not
primarily for personal, family, household, or

                                      -28-
<PAGE>
agricultural use, as such terms are used in Chapter 306 of the Texas Finance
Code. At all such times, if any, as Chapter 303 of the Texas Finance Code shall
establish a Maximum Rate, the Maximum Rate shall be determined in accordance
with Chapter 303 of the Texas Finance Code based on the "weekly ceiling" (as
such term is defined in Chapter 303 of the Texas Finance Code) from time to time
in effect.

                                    ARTICLE 3

                          SECURITY FOR THE OBLIGATIONS

                  Section 3.1  Security. (a) The Loan shall be primarily secured
by the following:

                  (i) Texas Deed of Trust, Mortgage, Assignment, Security
Agreement and Financing Statement, executed by the Borrower, granting a first
priority mortgage, security interest and assignment of production in the
Borrower's interests in various oil and gas properties in North Carthage Field
in Harrison and Panola Counties, State of Texas (and after the Closing Date in
future locations as Borrower and Agent and Required Banks may agree from time to
time) and collateral relating thereto, together with UCC Financing Statements
pertaining thereto.

                  (ii) Certain deposit accounts (and funds therein) maintained
with the Agent.

                  (iii) Guaranty Agreement executed by Endeavor.

                  (iv) Security Agreement executed by the Borrower, granting a
first priority security interest in 100% of the outstanding shares of Endeavor,
together with a UCC Financing Statement pertaining thereto.

                  (v) Collateral documents executed by Endeavor, granting a
first priority lien and security interest in its gas gathering system, together
with a UCC Financing Statement pertaining thereto.

                  (vi) Liens assigned by IBC Bank to the Agent.

                  (vii) Such additional deeds of trust, mortgage and other
collateral documents executed after the Closing Date encumbering such properties
as the Borrower and the Agent and Required Banks may agree from time to time.

                  (viii) Security Agreement executed by the Borrower, granting a
first priority security interest in 100% of the outstanding shares of Diamond,
together with a UCC financing statement pertaining thereto, and together with
the original stock certificate for the shares of Diamond, duly endorsed in blank
and delivered to the Agent with an executed stock power.

                                      -29-
<PAGE>
                  (ix) The Diamond Note, pledged by the Borrower to the Agent
pursuant to a security agreement, accompanied by delivery and endorsement of the
Diamond Note, and an acknowledgment of pledge document in favor of the Agent
executed by Diamond, together with a copy of the Security Agreement executed by
Diamond securing the Diamond Note and the filed UCC Financing Statement
pertaining thereto with Diamond as debtor and Borrower as secured party, and a
UCC Amendment Statement assigning said Financing Statement to the Agent.

                  (x) Undated letters (in lieu of division or transfer orders)
executed by Borrower, in form and substance satisfactory to the Agent, to each
purchaser of production or disburser of the proceeds of production from or
attributable to the Collateral, together with additional letters with the
addressees left blank, authorizing and directing that payment of all production
proceeds attributable to the Collateral and other properties in the Borrowing
Base be made directly to the Agent. Such letters shall be held by Agent and not
delivered, as provided in Subsection 8.2(c), until the occurrence of an Event of
Default.

                  (b) The Borrower confirms that the Collateral Documents secure
all of the Indebtedness to the Agent and to each of the Banks. The Borrower, the
Agent and the Banks acknowledge that the Collateral Documents described in
Section 3.1 above secure both such Indebtedness and the Secured Hedge
Obligations. The Banks confirm the application of Section 3.4 to govern the
Collateral Documents, the Indebtedness and the Secured Hedge Obligations.

                  Section 3.2 Confirmation. (a) The Borrower hereby reaffirms
its original intention as stated in the Collateral Documents executed prior to
the Closing Date that said existing Collateral Documents secure the Indebtedness
as extended and renewed from time to time, including without limitation this
Agreement and the Notes executed by the Borrower pursuant to this Agreement. The
Borrower confirms and agrees that said existing Collateral Documents securing
the Indebtedness, this Agreement and the Notes include without limitation the
documents described in Section 3.1 above. The Borrower hereby ratifies and
confirms in all respects the existing Collateral Documents executed by it, which
remain in full force and effect in accordance with all of their terms,
conditions and provisions in favor of the Agent, for the ratable benefit of the
Banks, and are hereby renewed and carried forward to secure the Indebtedness
under this Agreement. To the extent necessary, the Borrower hereby grants anew
all liens and security interests set forth in such Collateral Documents executed
by it to Agent, for the ratable benefit of the Banks, as security for the
Indebtedness.

                  (b) The Borrower will confirm the application of any
Intercreditor Agreement to the Collateral.

                  Section 3.3 Acquisition Collateral. (a) After each acquisition
by the Borrower or any Subsidiary of any interest in oil, gas and other mineral
properties (wherever located) involving an expenditure (in money or property)
the total amount of which (whether in one transaction or a series of related
transactions) either (x), when added to the total consideration

                                      -30-
<PAGE>
paid by the Borrower or any Subsidiary to or for the account of any Person in
connection with all such acquisitions during the six months immediately
preceding such acquisition date, exceeds two million five hundred thousand
($2,500,000.00) dollars, or (y) when added to the total consideration paid by
the Borrower and any Subsidiary to or for the account of any Person in
connection with all such acquisitions during the period from the Closing Date
through and including such acquisition date, exceeds five million
($5,000,000.00) dollars, the Borrower at its expense will promptly, and in no
event later than ninety (90) days after such acquisition, complete the execution
and recordation of appropriate Collateral Documents in favor of the Agent, for
the ratable benefit of the Secured Parties, and the submission of Title Opinions
in favor of the Agent reasonably acceptable to the Agent, covering all such
acquired properties.

                  (b) In connection with and at the time of each redetermination
of the Borrowing Base, the Borrower at its expense will promptly, and in no
event later than ninety (90) days after such redetermination, complete the
execution and recordation of appropriate Collateral Documents in favor of the
Agent, for the ratable benefit of the Secured Parties, covering all rights of
way, easements, surface leases or other property rights utilized in the
operation of the pipeline and gathering systems which are material to the
operation and sale of the Collateral (including without limitation the
production, transportation or marketing of Collateral hydrocarbons). As part of
the foregoing requirement, the Borrower shall cause such rights of way and other
interests to be recorded in the appropriate land title records.

                  (c) In connection with and at the time of each redetermination
of the Borrowing Base, the Borrower at its expense will promptly, and in no
event later than ninety (90) days after such redetermination, (i) complete the
execution and recordation of appropriate Collateral Documents in favor of the
Agent, for the ratable benefit of the Secured Parties, covering any property
included within the Borrowing Base which is not already encumbered as
Collateral, and (ii) submit title opinions in favor of the Agent reasonably
acceptable to the Agent covering any wells within the Borrowing Base not
previously covered by accepted title opinions, provided that clause (ii) is
subject to the exception set forth in the following sentence. Upon the
Borrower's request and demonstration of good cause satisfactory to the Agent and
the Required banks (in their sole and absolute discretion, as part of the
process of the Borrowing Base redetermination), a portion of the property within
the Borrowing Base may be exempted from this covenant for acceptable title
opinions. The continuing justification for each such exemption shall be
reconsidered as part of each redetermination of the Borrowing Base. Nonetheless,
the Borrower expressly acknowledges that, as provided in the definition of the
Borrowing Base, the Agent may exclude, in its sole and absolute discretion, any
property or portion of production therefrom from the Borrowing Base, at any
time, because title information on, or the status of title to, such property is
not reasonably satisfactory to Agent, such property is not collateral, the
Agent's lien or security interest therein is not first and prior to all others,
or such property is not assignable.

                  Section 3.4 Sharing among Secured Liabilities. (a) The Agent
and the Banks hereby agree that upon the foreclosure, sale, set-off or other
realization against any of the

                                      -31-
<PAGE>
Collateral which secures the Secured Liabilities (and not securing by its terms
just the Indebtedness) (the "Shared Collateral"), the Secured Parties shall
share in all of the proceeds of such Shared Collateral on a pari passu basis,
ratably according to the Secured Liabilities owing to each Secured Party as
specified in the following sentence. Proceeds from realization against such
Shared Collateral shall be applied by the Agent as follows:

                  (i) To the Agent, with respect to fees and expenses accrued
and outstanding (including without limitation reasonable attorneys' fees and
expenses); and

                  (ii) To the Secured Parties, ratably according to the Secured
Liabilities owing to the Secured Parties.

                  The Banks by unanimous consent may determine from time to time
whether any, and which portions, of the Collateral is to be Shared Collateral
beyond the Collateral described in Section 3.1.

                  (b) If any Secured Party has payment made to it of proceeds
arising from the foreclosure, sale, set-off or other realization on any of the
Shared Collateral pursuant to the remedies provided by the Collateral Documents
in a greater proportion than that received by any other Secured Party (except
for the Agent as specified in Subsection (a) above), such Secured Party shall
(and each Bank agrees to cause any of its Affiliates which are such a Secured
Party to) take such action as is necessary such that all Secured Parties shall
share in the benefits of such Shared Collateral ratably in proportion to the
Secured Liabilities owing to each Secured Party. In case any such payment is
disturbed by legal process, or otherwise, appropriate further adjustments shall
be made. The foregoing sharing pertains solely to the realization against the
Shared Collateral and the proceeds therefrom, and is not a general sharing
arrangement regarding the Secured Hedge Providers and the Agent and the Banks
for other purposes (including without limitation payments by the Borrower and
Subsidiaries from the Borrower's and Subsidiaries' general funds, including
funds derived from the Shared Collateral or the other Collateral). The Agent and
the Banks shall have the right to receive, and the Borrower and Subsidiaries
shall have the right and obligation to pay, all amounts owing as part of the
Indebtedness to be paid by the Borrower and Subsidiaries to the Agent and the
Banks as and when due. The Secured Hedge Providers shall have the right to
receive, and the Borrower and Subsidiaries shall have the right and obligation
to pay, all amounts owing as part of the Secured Hedge Obligations to be paid by
the Borrower and Subsidiaries to the Secured Hedge Providers as and when due.
The foregoing sharing arrangement pertains only to the proceeds arising from the
foreclosure, sale, set-off or other realization pursuant to the remedies
provided by the applicable Collateral Documents by the Agent, the Banks and the
Secured Hedge Providers on any of the Collateral which secures all the Secured
Liabilities.

                  (c) Should any payment or distribution from any such
realization upon any Shared Collateral or proceeds thereof (except payments
permitted by Subsection (b) above) be received by any Secured Party before
either the Indebtedness has, or the Secured Hedge

                                      -32-
<PAGE>
Obligations have, as the case may be, been paid and satisfied in full and
terminated such that no further liabilities will be incurred thereunder, that
Secured Party shall (and each Bank shall cause any of its Affiliates which is a
Secured Party to) deliver the same to the Agent in precisely the form received
(except for the endorsement, without recourse, or assignment of that Secured
Party where necessary), for application on the Secured Liabilities ratably as
provided in Subsection (a) above, and, until so delivered, the same shall be
held in trust by that Secured Party as property of the Agent.

                  (d) The agreement by the Agent and the Banks to so share the
Shared Collateral with the Secured Hedge Providers is expressly conditioned upon
and limited by (i) the right of the Agent and the Banks, at any time and from
time to time, to enter into such agreement or agreements with the Borrower and
Subsidiaries as the Agent and the Banks may deem proper extending the time of
payment or increasing or renewing or otherwise altering the terms of all or any
of the Indebtedness without notice to the Secured Hedge Providers and without in
any way impairing or affecting this Agreement, (ii) the right of the Agent to
release any portion or portions of the Collateral (including the Shared
Collateral) from to time as the Agent and the Banks may agree, and in connection
therewith for the Agent to have the express power to release any Secured Hedged
Provider's lien on the Shared Collateral under the Collateral Documents insofar
as it secures the Secured Hedge Obligations, without notice to or such Secured
Hedge Provider's consent, so long as such Collateral is simultaneously released
insofar as it secures the Indebtedness; and (iii) the right of the Agent and the
Banks holding the Indebtedness to control all decisions and determinations in
enforcing the Collateral Documents so long as any portion of the Indebtedness
remains outstanding, and decisions and determinations of the Required Banks in
enforcing the Collateral Documents and in guiding the Agent in such matters
shall be binding upon the Secured Hedge Providers, including without limitation
when and whether to realize upon the Collateral (including the Shared
Collateral), and when and whether to authorize the Agent at the pro rata expense
of all the Secured Parties (to the extent not reimbursed by the Borrower) to
retain attorneys to seek judgment on the Collateral Documents. This Section 3.4
is expressly limited by the requirements and definitions in this Agreement for
the creation of a Secured Hedge Obligation, and notwithstanding any provision in
any commodity, interest rate or currency rate protection agreement to the
contrary, liabilities thereunder which do not meet the requirements and
definitions in this Agreement for the creation of a Secured Hedge Obligations
shall not be secured by the Collateral or otherwise entitled to the benefits of
this Section 3.4.

                  (e) This sharing of the Shared Collateral with respect to the
Secured Liabilities shall remain in full force and effect not withstanding any
filing of a petition for relief by or against the Borrower under the Federal
Bankruptcy Code or similar laws from time to time in effect and shall apply with
full force and effect with respect to all such Shared Collateral covered by the
Collateral Documents acquired by the Borrower or any Grantor after the date of
such petition and all Indebtedness and Secured Hedge Obligations incurred after
the date of such petition. Such sharing shall apply with full force and effect
with respect to all Shared Collateral covered by the Collateral Documents from
time to time, including without limitation pursuant to supplements or amendments
to the Collateral Documents after the date hereof, subject to the

                                      -33-
<PAGE>
foregoing preserved right of the Agent and the Banks for partial releases. In
the event of any liquidation, dissolution, receivership, insolvency or
bankruptcy proceeding, any payment or distribution of any kind or character,
either in cash or other property, which shall be payable or deliverable upon or
with respect to any or all of the Shared Collateral shall be paid or delivered
directly to the Agent for application as provided in Subsection (a).

                  (f) Neither the Agent nor any of its directors, officers,
agents or employees shall be liable to any Secured Hedge Provider for any action
taken or omitted to be taken by it under or in connection with this Agreement,
except for its or their own gross negligence or willful misconduct. Without
limiting the generality of the foregoing, the Agent (i) may treat a Secured
Hedge Provider as the payee of its Secured Hedge Obligations until the Agent
receives written notice of the assignment or transfer thereof, signed by such
Secured Hedge Provider in a form satisfactory to the Agent; (ii) may consult
with legal counsel (including counsel for the Borrower), independent public
accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken by it in good faith in accordance with the
advice of such counsel, accountants or experts; (iii) makes no warranty or
representation to any Secured Hedge Provider and shall not be responsible to any
Secured Hedge Provider for any statements, warranties or representations made in
or in connection with this Agreement or the Collateral Documents; (iv) shall not
have any duty to ascertain or to inquire as to the performance or observance of
any of the terms, covenants or conditions of this Agreement or the Collateral
Documents, or to inspect any property (including the books and records) of the
Borrower and Subsidiaries; (v) shall not be responsible to any Secured Hedge
Provider for the due execution, legality, validity, enforce ability,
genuineness, sufficiency or value of this Agreement or the Collateral Documents;
and (vi) shall incur no liability under or in respect to this Agreement or the
Collateral Documents by acting upon any notice, consent, certificate or other
instrument or writing (which may be by facsimile, telegram, cable or telex)
believed by it to be genuine and signed or sent by the proper party or parties.
The Agent shall not have a fiduciary relationship in respect of any Secured
Hedge Provider by reason of this Agreement. The Agent shall not have any implied
duties to the Secured Hedge Providers, or any obligation to the Secured Hedge
Providers to take any action under this Agreement or the Collateral Documents
except any actions specifically provided by such documents to be taken by it.
The Agent shall have the same rights and privileges under this Agreement as any
other Secured Hedge Provider and may exercise the same as though it were not the
Agent; and the term "Secured Hedge Provider" shall, unless otherwise expressly
indicated, include the Agent in its individual capacity when applicable. The
granting of benefits under this Agreement and the Collateral Documents to the
Secured Hedge Providers is expressly conditioned upon the benefits and
protections provided to the Agent under Article 9 of this Agreement applying
with each force and effect to the Secured Hedge Providers.

                                      -34-
<PAGE>
                                    ARTICLE 4

                         REPRESENTATIONS AND WARRANTIES

                  In order to induce the Agent and the Banks to enter into this
Agreement, the Borrower represents and warrants to the Agent and the Banks
(which representations and warranties will survive the extensions of credit
under this Agreement) that:

                  Section 4.1 Existence. (a) The Borrower is a corporation duly
organized, legally existing, duly registered and in good standing under the laws
of its state of formation (Oklahoma) and is duly qualified in all other
jurisdictions wherein the property it owns or the business it transacts make
such qualification necessary and the failure to so qualify would have a material
adverse effect on its financial condition, business or operations.

                  (b) Each of Endeavor, Diamond and any other Subsidiary is a
corporation duly organized, legally existing and in good standing under the laws
of the state of incorporation (Oklahoma) and is duly qualified as a foreign
corporation in all other jurisdictions wherein the property it owns or the
business it transacts makes such qualification necessary and the failure to so
qualify would have a material adverse effect on its financial condition,
business or operations.

                  Section 4.2 Names, Numbers and Offices of Borrower. (a) The
Borrower is not doing business under any name (including trade names) other than
the exact name of the Borrower set forth above, and has never done business
previously under any other name. The Borrower's Subsidiaries do business only
under their exact names as provided in this Agreement.

                   (b) Each Company's location of its state of organization are
accurately set forth in the Collateral Documents. Each Company's chief executive
office has been continuously located in the State of Oklahoma on and after its
respective formation.

                  Section 4.3 Power and Authorization. Each Company is duly
authorized and empowered to execute, deliver and perform this Agreement, the
Notes and the Collateral Documents executed by it. All corporate action on the
part of each Company (including all shareholder action) requisite for the due
creation and execution of the Loan and this Agreement, the Notes and Collateral
Documents have been duly and effectively taken.

                  Section 4.4 Review of Documents; Binding Obligations. Each
Company has reviewed this Agreement, the Notes and the Collateral Documents with
counsel for the Companies and has had the opportunity to discuss the provisions
thereof with the Agent prior to execution. This Agreement, the Notes and the
Collateral Documents constitute valid and binding obligations of the Companies
which are party thereto, enforceable in accordance with their terms (except that
enforcement may be subject to any applicable bankruptcy, insolvency or similar
laws generally affecting the enforcement of creditors' rights). Each Company
further represents and warrants that it is in compliance with all of the
affirmative and negative covenants contained in this Agreement and the
Collateral Documents.

                                      -35-
<PAGE>
                  Section 4.5 No Legal Bar or Resultant Lien. This Agreement,
the Notes and the Collateral Documents do not and will not violate any
provisions of any Company's articles of incorporation or bylaws, will not
violate any contract, agreement, law, regulation, order, injunction, judgment,
decree or writ to which any Company is subject, and will not result in the
creation or imposition of any Lien upon any property of any Company other than
as contemplated by this Agreement.

                  Section 4.6 No Consent. The Companies' execution, delivery and
performance of this Agreement, the Notes and the Collateral Documents do not
require the consent or approval of any other Person, including without
limitation any regulatory authority or governmental body of the United States or
any state thereof or any political subdivision of the United States or any state
thereof.

                  Section 4.7 Financial Condition. All financial statements of
the Borrower and any affiliates delivered to the Agent and the Banks fairly and
accurately present the financial condition of the parties for whom such
statements are submitted and the financial statements of the Borrower and any
affiliates have been prepared in accordance with generally accepted accounting
principles consistently applied throughout the periods involved, and there are
no contingent liabilities not disclosed thereby which would adversely affect the
financial condition of Borrower or any affiliates. Since the close of the period
covered by the latest financial statement delivered to the Agent and the Banks
with respect to Borrower and any affiliates, there has been no material adverse
change in the assets, liabilities, or financial condition of Borrower or any
affiliates. No event has occurred (including, without limitation, any litigation
or administrative proceedings) and no condition exists or, to the knowledge of
Borrower, is threatened, which (i) might render Borrower unable to perform its
obligations under this Agreement, the Notes or the Collateral Documents, or (ii)
would constitute a Default hereunder, or (iii) might adversely affect the
financial condition of the Borrower or any affiliates or the validity or
priority of the Lien of the Collateral Documents. Each Company is solvent and
has the ability to pay its Debts when and as due.

                  Section 4.8 Taxes and Governmental Charges. Each Company has
filed all tax returns and reports required to be filed and have paid all taxes,
assessments, fees and other governmental charges levied upon it or upon its
property or income which are due and payable, including interest and penalties,
or is contesting the same in good faith by appropriate proceedings and has
provided adequate reserves for the payment thereof.

                  Section 4.9 Defaults. The Companies are not in default under
any indenture, mortgage, deed of trust, agreement or other instrument to which
such Company is a party or by which it or any of its property is bound.

                  Section 4.10 Liabilities and Litigation. (a) Except for
liabilities incurred in the normal course of business, the Borrower and its
Subsidiaries have no material (individually or in the aggregate) liabilities,
direct or contingent, except as disclosed in the most recent financial

                                      -36-
<PAGE>
statements furnished to the Agent. Except as disclosed in the most recent
financial statements furnished to the Agent, there is no litigation, legal or
administrative proceeding, investigation or other action of any nature pending
or, to the knowledge of Borrower, threatened against or affecting any Company
which involves the possibility of any judgment or liability not fully covered by
insurance which may materially and adversely affect the business or the property
of the Borrower or such Subsidiary or its ability to carry on business as now
conducted.

                  (b) Without limiting the foregoing, on the Closing Date there
is no litigation, legal or administrative proceeding, investigation or other
action pending or, to the knowledge of Borrower, threatened against or affecting
the Borrower involving non-compliance by the Borrower or its properties with any
Applicable Environmental Laws (as defined in Section 4.17).

                  (c) Without limiting the foregoing, there is no litigation,
legal or administrative proceeding, investigation or other action pending, or to
the knowledge of Borrower, threatened against or affecting the Borrower
involving allegations that Borrower has failed to adequately develop its
properties.

                  Section 4.11 Federal Regulations. None of the Loan proceeds
will be used for the purpose of, and the Borrower is not engaged in the business
of extending credit for the purpose of, purchasing or carrying any "margin
stock" as defined in Regulation U of the Board of Governors of the Federal
Reserve System (12 C.F.R. Part 221), or for the purpose of reducing or retiring
any indebtedness which was originally incurred to purchase or carry a margin
stock or for any other purpose which might constitute this transaction a
"purpose credit" within the meaning of said Regulation U. The Borrower is not
engaged principally, or as one of the Borrower's important activities, in the
business of extending credit for the purpose of purchasing or carrying margin
stocks. Neither the Borrower nor any Person acting on behalf of the Borrower has
taken or will take any action which might cause this Agreement to violate
Regulation U or any other regulation of the Board of Governors of the Federal
Reserve System or to violate the Securities Exchange Act of 1934 or any rule or
regulation thereunder, in each case as now in effect or as the same may
hereinafter be in effect. No part of the proceeds of the Loan will be used,
directly or indirectly, to fund a personal loan to or for the benefit of a
director or executive officer of the Borrower or any Subsidiary.

                  Section 4.12 Utility or Investment Company. No Company is
engaged in the generation, transmission, or distribution and sale of electric
power; operation of a local distribution system for the sale of natural or other
gas for domestic, commercial, industrial, or other use; ownership or operation
of a pipeline for the transmission or sale of natural or other gas, crude oil or
petroleum products (except for ownership of interests in gathering line
systems); provision of telephone or telegraph service to others; production,
transmission, or distribution and sale of steam or water; operation of a
railroad; or provision of sewer service to others; or any other activity which
cause such Company to be subject to regulation as a utility. The Borrower is not
an "investment company" within the meaning of the Investment Company Act of
l940, as amended.

                                      -37-
<PAGE>
                  Section 4.13 Compliance with the Law. Each Company (i) is not
in violation of any law, judgment, decree, order, ordinance, or governmental
rule or regulation to which such Company or any of its property is subject; and
(ii) has not failed to obtain any license, permit, franchise or other
governmental authorization necessary to the ownership of any of its property or
the conduct of its business; in each case, which violation or failure could
reasonably be anticipated to materially and adversely affect the business,
prospects, profits, property or condition (financial or otherwise) of such
Company.

                  Section 4.14 ERISA. The Borrower is in compliance in all
material respects with the applicable provisions of ERISA, and no "reportable
event", as such term is defined in Section 4043 of ERISA, has occurred with
respect to any Plan of the Borrower.

                  Section 4.15 Other Information. All information, reports,
papers and data given to the Agent and the Banks by the Borrower pursuant to
this Agreement and in connection with the Borrower's application for the Loan
and the Agent's commitment letter are accurate and correct in all material
respects, and together constitute a complete and accurate presentation of all
facts material thereto. All financial projections given to the Agent were
prepared in good faith based on facts and circumstances existing at the time of
preparation and were believed by the Borrower to be accurate in all material
respects. No information, exhibit or report furnished by the Borrower to the
Agent in connection with the negotiation of this Agreement contains any material
misstatement of fact or fails to state a material fact or any fact necessary to
make the statement contained therein not materially misleading.

                  Section 4.16 Collateral. (a) The Borrower has good and
marketable title to the Collateral, and the Collateral Documents constitute the
legal, valid and perfected Liens on the Collateral, free of all Liens except
those permitted by this Agreement in Section 6.2.

                  (b) The Borrower has, with respect to the Collateral, the
working interests and net revenue interests therein as reported to the Agent in
connection with the negotiation of this Agreement. Without limiting the
preceding sentence, except as otherwise specifically disclosed to the Agent in
writing, all of the proved reserves (whether producing or not, and whether
proved developed or proved undeveloped) included in the reserve report covering
the Borrower's properties in the States of Texas and New Mexico most recently
delivered to the Agent (on the Closing Date, the third party engineering report
prepared by Sproule Associates Inc., dated effective as of January 1, 2006) are
owned as so reported, are encumbered Collateral in favor of the Agent, and are
properly described in the Collateral Documents. Except as otherwise specifically
disclosed to the Agent in writing with respect to any particular part of the
Borrower's properties, (i) the Borrower is not obligated, whether by virtue of
any payment under any contract providing for the sale by the Borrower of
hydrocarbons which contains a "take or pay" clause or under any similar
arrangement or by virtue of any production payment or otherwise, to deliver
hydrocarbons produced or to be produced from the Borrower's properties at any
time after the Closing Date without then or thereafter receiving full payment
therefor, except for Permitted Hedge Agreements; (ii) none of the Borrower's
properties is subject to any contractual

                                      -38-
<PAGE>
or other arrangement whereby payment for production is to be deferred for a
substantial period after the month in which such production is delivered; (iii)
none of the Borrower's properties is subject to an arrangement or agreement
under which any purchaser or other Person is currently entitled to "make-up" or
otherwise receive material deliveries of hydrocarbons at any time after the
Closing Date without paying at such time the full contract price therefor; and
(iv) no Person is currently entitled to receive any material portion of the
interest of the Borrower in any hydrocarbons or to receive cash or other
payments from the Borrower to "balance" any disproportionate allocation of
hydrocarbons under any operating agreement, cash balancing and storage
agreement, gas processing or dehydration agreement, or other similar agreements.
For purposes of this paragraph, "material" shall mean two hundred ($200,000.00)
dollars (or more) or an amount of property with an equivalent value.

                  (c) None of the Collateral is subject to any calls on
production of hydrocarbons or any gathering or transportation dedications or
commitments of any kind.

                  (d) Endeavor has good and marketable title to the gas
gathering system servicing the Collateral in East Texas.

                  (e) On the Closing Date all of the natural gas produced by the
Borrower from (and as) Collateral in East Texas for which the Borrower is the
operator is sold by the Borrower to Endeavor at the wellhead.

                  Section 4.17 Environmental Matters. No friable asbestos, or
any substance containing asbestos deemed hazardous by federal or state
regulations on the date of this Agreement, has been installed in any Collateral
constituting real property. Such real property and the Companies are not in
violation of or subject to any existing, pending, or threatened investigation or
inquiry by any governmental authority or to any remedial obligations under any
applicable laws pertaining to health or the environment (hereinafter sometimes
collectively called "Applicable Environmental Laws"), including without
limitation the Comprehensive Environmental Response, Compensation, and Liability
Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of
1986 (as amended, hereinafter called "CERCLA"), the Resource Conservation and
Recovery Act of 1976, as amended by the Used Oil Recycling Act of 1980, the
Solid Waste Disposal Act Amendments of 1980, and the Hazardous and Solid Waste
Amendments of 1984 (as amended, hereinafter called "RCRA"), and this
representation and warranty would continue to be true and correct following
disclosure to the applicable governmental authorities of all relevant facts,
conditions and circumstances, if any, pertaining to such property and known to
the Borrower. No hazardous substances or solid wastes have been disposed of or
otherwise released on or to such property. The terms "hazardous substance" and
"release" as used in this Agreement shall have the meanings specified in CERCLA,
and the terms "solid waste" and "disposal" (or "disposed") shall have the
meanings specified in RCRA; provided, in the event that the laws of any
applicable state establish a meaning for "hazardous substance," "release,"
"solid waste," or "disposal" which is broader than that specified in either
CERCLA or RCRA, such broader meaning shall apply.

                                      -39-
<PAGE>
                  Section 4.18 Governmental Requirements. Any Collateral
constituting real (immovable) property is in compliance with all current
governmental requirements affecting such property, including, without
limitation, all current coastal zone protection, zoning and land use
regulations, building codes and all restrictions and requirements imposed by
applicable governmental authorities with respect to the construction of any
improvements on such property and the contemplated use of such property.

                  Section 4.19 Contracts. (a) The Contracts when considered as a
whole do not materially affect the rights, benefits or security of the Agent and
the Banks under the Collateral Documents and the Contracts do not contain any
provision which would prevent the Agent's practical realization of the benefits
of the Collateral Documents as to the Collateral. After giving effect to the
Contracts, the net revenue interests of the Borrower in the Collateral are not
less than those set forth in the Collateral Documents.

                  (b) The Borrower has provided to the Agent true, accurate and
complete copies of the Participation Agreement (including all amendments).

                  Section 4.20 Affiliates. (a) On the Closing Date, the Borrower
has no Subsidiaries other than Endeavor and Diamond, and each of those
Subsidiaries has no Subsidiary. On the Closing Date, none of the Companies has
an ownership (direct or beneficial) interest in any Person (whether stock,
partnership interest, membership interest or otherwise) other than as stated in
the preceding sentence. The Borrower owns and controls 100% of the ownership and
voting rights in Endeavor and Diamond. The Borrower has furnished to the Agent
true, accurate and complete copies of the organizational documents (articles of
incorporation and bylaws) of the Companies.

                  (b) None of the Collateral is owned by, or has record title to
it in the name of, another company than Borrower and as to the gathering system
Endeavor.

                  (c) The Borrower owns and controls 100% of the ownership and
voting rights in Diamond. On the date that each advance by the Borrower to
Diamond is made under the Diamond Note, Diamond will be (i) a duly organized and
legally existing corporation in good standing under the laws of the State of
Oklahoma, and (ii) solvent and having the ability to pay its debt when and as
due. Diamond has no ownership (direct or beneficial) interest in any Person
(whether stock, partnership interest, membership interest or otherwise).

                  Section 4.21 Debt and Preferred Stock. (a) The Borrower has no
Debt for borrowed money from any Person (other than this new Loan), except the
PVOG Production Payment (on the terms described in the definition thereof). The
Borrower has no material accounts payable more than sixty days old. The only
documents evidencing the PVOG Production Payment are the Participation Agreement
(including all amendments).

                  (b) On the Closing Date, the Borrower has no preferred stock
issued and outstanding.

                                      -40-
<PAGE>
                  Section 4.22 Patriot Act. To the extent applicable, each
Company is in compliance, in all material respects, with the (i) federal Trading
with the Enemy Act, as amended, and each of the foreign assets control
regulations of the United States Treasury Department (31 CFR, Subtitle B,
Chapter V, as amended) and any other enabling legislation or executive order
relating thereto, and (ii) Federal Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA
Patriot Act of 2001) (the "Patriot Act"). No part of the proceeds of any Loan
will be used, directly or indirectly, for any payments to any governmental
official or employee, political party, official of a political party, candidate
for office or any one use acting in an official capacity, in order to obtain,
retain or direct business or obtain any improper advantage, in violation of the
United States Foreign Corrupt Practices Act of 1977, as amended.

                  Section 4.23 Operations. On the Closing Date, the Operators of
the Borrower's Texas properties are as follows:

                  Operator                      Field
                  --------                      -----
                  PVOG                          Participation Agreement Areas I
                                                and II
                  Borrower                      Participation Agreement Area III
                  Hunt Petroleum Corporation    Joe Roberson Units

                  Section 4.24 Continuing Accuracy. All of the representations
and warranties contained in this Article or elsewhere in this Agreement shall be
true through and until the date on which all obligations of Borrower under this
Agreement, the Notes and the Collateral Documents and any other documents
executed in connection therewith are fully satisfied.

                                    ARTICLE 5

                              AFFIRMATIVE COVENANTS

                  Unless the Agent's and the Required Banks' (or if required by
Section 10.4 hereof, all of the Banks') prior written consent to the contrary is
obtained, the Borrower will at all times comply with the covenants contained in
this Article 5 (including where applicable, without the necessity of expressly
so stating in each instance, causing its Subsidiaries to comply with such
covenant), from the date hereof and for so long as any part of the Indebtedness
is outstanding.

                  Section 5.1 Performance of Obligations. The Borrower will
repay the Indebtedness according to the reading, tenor and effect of the Notes
and this Agreement. The Borrower will do and perform every act required of it by
this Agreement, the Notes or in the Collateral Documents at the time or times
and in the manner specified.

                  Section 5.2 Financial Statements and Reports. The Borrower
will furnish or cause to be furnished to the Agent from time to time: (and the
Agent shall furnish promptly to each Bank from time to time copies of all such
documents received by the Agent from the

                                      -41-
<PAGE>
Borrower, except that documents under paragraphs (e), (i) and (n) below shall be
forwarded by Agent only upon request by a Bank).

                  (a) Borrower's Annual Reports - as soon as available and in
any event within 120 days after the close of each fiscal year of the Borrower,
the consolidated audited balance sheet of the Borrower as of the end of such
year, the consolidated audited statement of income of the Borrower for such
year, the consolidated audited statement of changes in shareholder equity of the
Borrower for such year, and the consolidated audited statement of cash flow of
Borrower for such year, setting forth in each case in comparative form the
corresponding figures for the preceding fiscal year, accompanied by a report of
the Borrower's independent certified public accountants acceptable to the Agent.
Such annual reports shall be accompanied by the certificates of compliance
required by Section 5.3.

                  (b) Borrower's Quarterly Reports - as soon as available and in
any event within 60 days after the end of each fiscal quarter in each fiscal
year of the Borrower, the unaudited consolidated balance sheet of the Borrower
as of the end of such fiscal quarter, the unaudited consolidated statement of
income of the Borrower for the period from the beginning of the fiscal year to
the close of such fiscal quarter, the unaudited consolidated statement of
changes in shareholders equity of the Borrower for the period from the beginning
of the fiscal year to the close of such fiscal quarter, and the unaudited
consolidated statement of cash flow of Borrower for the period from the
beginning of the fiscal year to the close of such fiscal quarter, setting forth
in each case in comparative form the corresponding figures for the corresponding
period of the preceding fiscal year (and showing without limitation any over or
under produced imbalances of production). Such internally prepared quarterly
reports shall be accompanied by the certificates of compliance required by
Section 5.3.

                  (c) Semi-Annual Engineering Reports - as soon as available and
in any event by April 1 and October 1 of each year, a semi-annual engineering
report covering the Borrowing Base properties, with an effective date of
December 31 for the April 1 report and no more than 60 days earlier for the
October 1 report, in form and substance acceptable to the Agent. The report for
the April 1 determination shall be reviewed by an independent third party
petroleum engineers firm acceptable to the Agent. The report for the October 1
determination may be an internal update report furnished by the Borrower with
technical review in a meeting between the Borrower and Agent's Energy Technical
Services. Without limiting the foregoing sentences, such reports shall include a
discussion of assumptions as to engineering, pricing and expenses, and an
economic evaluation together with the reserve value of each well of each
property in the Borrowing Base, and further categorized as Collateral or
non-Collateral and as Proved Developed Producing Reserves, Proved Developed
Non-Producing Reserves, or Proved Undeveloped Reserves. (The Borrower
acknowledges that the Agent reserves the right to determine the Borrowing Base
based on the provisions hereof and Agent's own evaluations of rates, volumes,
prices, assumptions and other factors regardless of this outside engineering
data or then market prices.)

                                      -42-
<PAGE>
                  (d) Quarterly Reports - within 60 days after the end of each
calendar quarter, three production and price tracking monthly reports pertaining
to the Borrowing Base properties on a well by well basis in form acceptable to
the Agent's Energy Technical Services, including production volumes, sales
volume, sales revenues, production taxes, operating expenses, capital
expenditures, and revenue and expense statements. Such report shall include the
status of all gas balancing (if any) affecting any of the Borrowing Base
properties.

                  (e) Periodic Title Information - periodically as available and
in any event no later than the date for the delivery of the semi-annual
engineering reports under Subsection 5.2(c), copies of drill site title opinions
or division order title opinions covering newly drilled wells included in the
Collateral which are not covered by title opinions previously delivered to the
Agent (i.e., wells drilled within the preceding period); and in addition
promptly upon the Agent's request, detailed information concerning any and all
requirements or exceptions set forth in any title opinions concerning any of the
Collateral.

                  (f) Environmental - (I) promptly upon receipt thereof,
complete documentation pertaining to any fines levied during the prior year
against the Borrower, or to the extent known and available to the Borrower
against an Operator of any Collateral, for non-compliance with all applicable
federal, state and local environmental laws and regulations; and (II) promptly
upon learning thereof, notice of Borrower's acquisition of actual knowledge of
the presence of any hazardous materials or solid waste (as defined elsewhere in
this Agreement) on or under any Collateral.

                  (g) Notices - when required by the terms thereof, the notices
required under Section 5.11.

                  (h) Audit Reports -promptly upon receipt thereof, one copy of
each report (if any) submitted to the Borrower by independent accountants in
connection with any annual, interim or special audit made by them of the books
of the Borrower.

                  (i) Insurance Report - within 30 days after the end of each
fiscal year of the Borrower, an annual insurance coverage report detailing the
insurance program maintained by or for the Borrower.

                  (j) S.E.C. Reports -promptly upon becoming available, copies
of all (i) regular, periodic or special reports, schedules and other material
which the Borrower may be required to file with or deliver to any securities
exchange or the Securities and Exchange Commission (or any other governmental
authority succeeding to the functions thereof) and (ii) material news releases
and annual reports relating to the Borrower. Such documents shall be deemed to
have been delivered on the date such document is included in materials otherwise
filed with the Securities and Exchange Commission electronically so as to be
publicly available on an internet website to which the Agent has access.

                                      -43-
<PAGE>
                  (k) Hedge Agreements - promptly after entering into such
contract if requested by the Agent but in any event at the end of each fiscal
quarter, written notice of the fact that the Borrower or a Subsidiary has
entered into a Hedge Agreement, together with a list of all Hedge Agreements of
the Borrower and its Subsidiaries describing the material terms thereof. Absent
a specific request, this information may be provided as part of the Borrower's
Form 10-Q.

                  (l) Participation Agreement - promptly after execution
thereof, copies of each amendment or supplement to or replacement of the
Participation Agreement.

                  (m) Other Information - promptly upon the request of the Agent
or any Bank, all regular budgets and such other financial, technical or other
information regarding the business and affairs and financial condition of the
Borrower as the Agent or such Bank may reasonably request (for review and
copying).

                  (n) Diamond Note - concurrently with the furnishing of the
certificates of compliance under Section 5.3, and at other times promptly upon
the request of the Agent, a report detailing the status of the loan evidenced by
the Diamond Note as to loan amount, payment history and default (if any), all as
the Agent may reasonably request.

All balance sheets and other financial reports referred to above shall be in
such detail as the Agent or the Required Banks may reasonably request and shall
conform to the standards described in Section 1.3.

                  Section 5.3 Certificates of Compliance. (a) So long as not
contrary to the then current rules, regulations or recommendations of the
American Institute of Certified Public Accountants or similar body, concurrently
with the furnishing of the annual financial statements described above, the
Borrower will cause to be furnished to the Agent a certificate from the
independent certified public accountants for the Borrower stating that in the
ordinary course of their audit of the Borrower, insofar as it relates to
accounting matters, their audit has not disclosed the existence of any condition
which constitutes a Default, or if their audit has disclosed the existence of
any such condition, specifying the nature, period of existence and status
thereof; provided, however, that the independent certified public accountants
shall not be liable to the Agent and the Banks for their failure to discover a
Default.

                  (b) Concurrently with the furnishing of the annual and
quarterly financial statements described above, the Borrower will furnish to the
Agent, for distribution to the Banks, a certificate signed by the principal
financial officer of the Borrower, stating either that no Default occurred
during such quarter (or if it did but no longer exists, the nature and duration
thereof) and that no Default then exists, or if a Default exists, the nature,
period of existence and status thereof, and specifically setting forth the
calculations showing the Borrower's compliance with the financial covenants in
Section 5.15.

                                      -44-
<PAGE>
                  Section 5.4 Taxes and Other Liens. Each Company will file all
tax returns and reports required to be filed and pay and discharge promptly when
due all taxes, assessments and governmental charges or levies imposed upon it or
upon income or upon any of its property (including production, severance,
windfall profit, excise and other taxes assessed against or measured by the
production of, or the value or proceeds of production of, the Collateral) as
well as all claims of any kind (including claims for labor, materials, supplies
and rent) which, if unpaid, might become a Lien upon any or all of its property;
provided, however, such Company shall not be required to pay any such tax,
assessment, charge, levy or claim if the amount, applicability or validity
thereof shall currently be contested in good faith by appropriate proceedings
diligently conducted and if the contesting party shall have set up reserves
therefor adequate under generally accepted accounting principles (provided that
such reserves may be set up under generally accepted accounting principles) and
so long as the payment of same is not a condition to be met in order to maintain
an oil, gas or mineral lease in force.

                  Section 5.5 Maintenance and Compliance. The Borrower will, and
will cause each Subsidiary to, (i) maintain its corporate existence and rights
and its current business operations; (ii) observe and comply (to the extent
necessary so that any failure will not materially and adversely affect the
business of such Person) with all valid existing and future laws, statutes,
codes, acts, ordinances, orders, judgments, decrees, injunctions, rules,
regulations, certificates, franchises, permits, licenses, authorizations,
directions and requirements (including without limitation applicable statutes,
regulations, orders and restrictions relating to environmental standards or
controls or to energy regulations) of all federal, state, county, municipal and
other governments, departments, commissions, boards, courts, authorities,
officials and officers, domestic or foreign; and (iii) maintain its properties
(and any property leased by or consigned to it or held under title retention or
conditional sales contracts) in generally good and workable condition at all
times and make all repairs, replacements, additions, betterments and
improvements to its properties to the extent necessary so that any failure will
not materially and adversely affect the business of such Person.

                  Section 5.6 Further Assurances. The Borrower at its expense
will, and will cause each Subsidiary to, promptly (and in no event later than 30
days after written notice from the Agent is received) cure any defects, errors
or omissions in the creation, execution, delivery or contents of this Agreement,
the Notes or the Collateral Documents, and execute and deliver to the Agent upon
request all such other and further documents, agreements and instruments in
compliance with or accomplishment of the covenants and agreements of the
Companies in this Agreement, the Notes or in the Collateral Documents or to
further evidence and more fully describe the Collateral (including without
limitation any renewals, additions, substitutions, replacements or accessions to
the Collateral), or to correct any omissions in the Collateral Documents, or
more fully state the security obligations set out herein or in any of the
Collateral Documents, or to perfect, protect or preserve any Liens and the
priority thereof created pursuant to any of the Collateral Documents, or to make
any recordings, to file any notices, or obtain any consents as may be necessary
or appropriate in connection with the transactions contemplated by this
Agreement.

                                      -45-
<PAGE>
                  Section 5.7 Reimbursement of Expenses. The Borrower will pay
all reasonable legal fees and expenses incurred by the Agent and the Banks in
connection with the preparation or administration of this Agreement, the Notes
and the Collateral Documents. The Borrower will upon request promptly reimburse
the Agent and the Banks for all amounts expended, advanced or incurred by the
Agent and the Banks to satisfy any obligation of the Borrower under this
Agreement, or to protect the property or business of any Company or to collect
the Secured Liabilities, or to enforce the rights of the Agent and the Banks
under this Agreement, the Notes, the Collateral Documents or the Secured Hedge
Agreements, which amounts will include all court costs, attorneys' fees and
expenses, fees and expenses of engineers, auditors and accountants, travel
expenses and investigation expenses reasonably incurred by the Agent and the
Banks in connection with any such matters, together with interest at the Default
Rate on each such amount from the date that is thirty (30) days after demand by
the Agent and the Banks therefor until the date of reimbursement to the Agent or
such Bank. The Borrower also agrees to pay, and to hold the Agent and the Banks
harmless from any failure or delay in paying, all recording taxes, documentary
stamp taxes or other similar taxes, if any, which may be payable or determined
to be payable in connection with the execution and delivery of this Agreement,
the Notes, the Collateral Documents, the Secured Hedge Agreements, or any
modification or supplement thereof or thereto.

                  Section 5.8 Insurance. Each Company will maintain with
financially sound and reputable insurers, insurance with respect to its
properties and businesses against such liabilities, casualties, risks and
contingencies and in such types and amounts as are reasonably satisfactory to
the Agent and customary in accordance with standard industry practice or as more
specifically provided in the Collateral Documents. Upon request of the Agent,
the Borrower will furnish or cause to be furnished to the Agent from time to
time a summary of the insurance coverage of the Companies in form and substance
satisfactory to the Agent and if requested will furnish the Agent original
certificates of insurance and/or copies of the applicable policies.

                  Section 5.9 Accounts and Records. The Borrower will keep books
of record and accounts in which true and correct entries will be made as to all
material matters of all dealings or transactions in relation to the Companies'
business and activities.

                  Section 5.10 Right of Inspection. The Borrower will permit any
officer, employee or agent of the Agent or any Bank at such Person's risk to
visit and inspect any of the property of the Companies, examine the books of
record and accounts of the Companies, take copies and extracts therefrom, and
discuss the affairs, finances and accounts of the Companies with the Borrower's
officers, accountants and auditors, and the Borrower will furnish information
concerning the Collateral, including schedules of all internal and third party
information identifying the Collateral (such as, for example, lease and well
names and numbers assigned by the Borrower or the Operator of any mineral
properties, division orders and payment names and numbers assigned by purchasers
of the hydrocarbons, and internal identification names and numbers used by the
Borrower in accounting for revenues, costs and joint interest transactions
attributable to the mineral properties), all on reasonable notice, at such
reasonable

                                      -46-
<PAGE>
times without hindrance or delay and as often as the Agent or any Bank may
reasonably desire. The Borrower will furnish to the Agent promptly upon request
and in the form and content specified by the Agent lists of purchasers of
hydrocarbons and other account debtors, schedules of equipment and other data
concerning the Collateral as the Agent may from time to time specify.

                  Section 5.11 Notice of Certain Events. (a) The Borrower shall
promptly notify the Agent if the Borrower learns of the occurrence of any event
which constitutes a Default, together with a detailed statement by a responsible
officer of the Borrower of the steps being taken to cure the effect of such
Default.

                  (b) The Borrower shall promptly notify the Agent of any change
in location of any Company's principal place of business or the office where it
keeps its records concerning accounts and contract rights or a change in its
name, state of organization or organizational status.

                  (c) The Borrower shall promptly notify the Agent of the
arising of any litigation or dispute threatened against or affecting the
Borrower or any Subsidiary which, if adversely determined, would have a material
adverse effect upon the financial condition or business of the Borrower or such
Subsidiary. In the event of such litigation, the Borrower will cause such
proceedings to be vigorously contested in good faith and, in the event of any
adverse ruling or decision, the Borrower shall prosecute all allowable appeals.
The Agent may (but shall not be obligated to), after prior notice to Borrower,
commence, appear in, or defend any action or proceeding purporting to affect the
Loan, or the respective rights and obligations of Agent and the Banks and
Borrower pursuant to this Agreement, and the Borrower agrees to repay the Agent
upon demand all necessary expenses, including reasonable attorneys' fees and
expenses, incurred by the Agent in connection with such proceedings or actions.

                  (d) The Borrower shall promptly notify the Agent of the
occurrence of any material adverse change in the value of any oil or gas
property or properties which is or are included in and in the aggregate
represents at least five (5%) percent of the Borrowing Base, or from which any
Company otherwise derives at least five (5%) percent of its revenue. Without
limiting the foregoing, the Borrower shall promptly notify the Agent of any
notice of default or cancellation from any lessor of any mineral lease in the
Collateral. This paragraph does not apply to changes in value resulting from
market price changes affecting the oil and gas industry generally.

                  (e) The Borrower shall promptly notify the Agent of the
creation, incurrence, assumption, existence or filing of any Lien on any
Borrowing Base property now owned or hereafter acquired, except for Liens
permitted under Section 6.2.

                  (f) The Borrower shall promptly notify the Agent of each
creation, acquisition, disposition, dissolution, merger or other change in the
status of or addition or removal of any Subsidiary.

                                      -47-
<PAGE>
                  (g) The Borrower shall promptly notify the Agent (if possible
in advance) of any change in the identity of the Operator of any of the
Borrower's properties.

                  (h) The Borrower shall promptly notify the Agent of any notice
of default received from or sent to (i) PVOG under the Participation Agreement
or (ii) any Operator.

                  (i) The Borrower shall promptly notify the Agent of any event
which would render any of the representations and warranties set forth in
Article 4 untrue or misleading in any material respect, except as such
representations and warranties relate to matters as are changed as permitted by
this Agreement.

                  (j) The Borrower shall promptly notify the Agent of the
occurrence of any event which constitutes a default under the Qualified
Subordinated Debt or the Qualified Redeemable Preferred Equity.

                  (k) The Borrower shall promptly furnish the Agent with a copy
of any notice of default or waiver (retroactive or prospective) pertaining to
the Qualified Subordinated Debt or the Qualified Redeemable Preferred Equity.

                  (l) The Borrower shall promptly furnish the Agent with copies
of each amendment, modification or waiver pertaining to the Qualified
Subordinated Debt or the Qualified Redeemable Preferred Equity or any new
agreement pertaining to either.

The foregoing requirements of notice shall not be construed to imply permission
or consent by the Agent and the Banks as to such events or to waive any
representations, covenants and defaults set forth in this Agreement.

                  Section 5.12 ERISA Information and Compliance. The Borrower
will promptly furnish to the Agent (i) promptly after the filing thereof with
the United States Secretary of Labor or the Pension Benefit Guaranty
Corporation, copies of each annual and other report with respect to each Plan or
any trust created by the Borrower, and (ii) immediately upon becoming aware of
the occurrence of any "reportable event," as such term is defined in Section
4043 of ERISA, or of any "prohibited transaction," as such term is defined in
Section 4975 of the Code, in connection with any Plan or any trust created by
the Borrower, a written notice signed by the president or the principal
financial officer of the Borrower specifying the nature thereof, what action the
Borrower is taking or proposes to take with respect thereto, and, when known,
any action taken by the Internal Revenue Service with respect thereto. The
Borrower will comply with all of the applicable funding and other requirements
of ERISA as such requirements relate to the Plans of the Borrower.

                  Section 5.13 Indemnification. (a) The Borrower will indemnify
the Agent and the Banks and other Indemnified Parties and hold the Agent and the
Banks and other Indemnified Parties harmless from claims of brokers with whom
the Borrower has contracted in the execution hereof or the consummation of the
transactions contemplated hereby. The Agent and each Bank,

                                      -48-
<PAGE>
severally, will indemnify the Borrower and hold the Borrower harmless from
claims of brokers with whom the Agent or such Bank, respectively, has contracted
in connection with the transactions contemplated hereby.

                  (b) The Borrower will indemnify the Agent and the Banks and
other Indemnified Parties and hold the Agent and the Banks and other Indemnified
Parties harmless from any and all liabilities, obligations, losses, damages,
penalties, claims, actions, suits, costs and expenses of whatever kind or nature
which may be imposed on, incurred by or asserted at any time against the
Indemnified Parties in any way relating to, or arising in connection with, the
use or occupancy of any of the Collateral or any breach of any representation,
warranty or covenant under the terms of this Agreement or the Collateral
Documents.

                  Section 5.14 Environmental Indemnity. The Borrower shall
defend, indemnify and hold the Agent and each Bank and its respective
shareholders, directors, officers, agents, employees, subsidiaries and
Affiliates (collectively the "Indemnified Parties", and each as "Indemnified
Party") harmless from and against all claims, demands, causes of action,
liabilities, losses, costs and expenses (including, without limitation, costs of
suit, reasonable attorneys' fees and fees of expert witnesses) arising from or
in connection with (i) the presence on or under all Collateral constituting real
(immovable) property of any hazardous substances or solid wastes (as defined
elsewhere in this Agreement), or any releases or discharges of any hazardous
substances or solid wastes on, under or from such property, or (ii) any activity
carried on or undertaken on or off such property, whether prior to or during the
term of this Agreement, and whether by Borrower or any predecessor in title or
any officers, employees, agents, contractors or subcontractors of Borrower or
any predecessor in title, or any third persons at any time occupying or present
on such property, in connection with the handling, use, generation, manufacture,
treatment, removal, storage, decontamination, clean-up, transport or disposal of
any hazardous substances or solid wastes at any time located or present on or
under such property. The foregoing indemnity shall further apply to any residual
contamination on or under such property, or affecting any natural resources, and
to any contamination of any property or natural resources arising in connection
with the generation, use, handling, storage, transport or disposal of any such
hazardous substances or solid wastes, and irrespective of whether any of such
activities were or will be undertaken in accordance with applicable laws,
regulations, codes and ordinances. Without prejudice to the survival of any
other agreements of the Borrower hereunder, the provisions of this Section shall
survive the final payment of all Indebtedness and the termination of this
Agreement and shall continue thereafter in full force and effect.

                  Section 5.15 Financial Covenants. The Borrower shall comply
with the following financial covenants (determined in accordance with Section
1.3), except as specifically stated otherwise:

                  (a) Minimum Current Ratio. The Borrower shall maintain, on a
quarterly basis as of the last day of each fiscal quarter, a current ratio in an
amount not less than 1.00 to 1.00. For purposes of this Section, "current ratio"
shall mean the ratio of (x) current assets plus

                                      -49-
<PAGE>
the unused and available portion of the Commitment Limit (being the amount, if
any, by which the Commitment Limit then in effect exceeds the sum of the
principal balance of unpaid and outstanding Advances and the total undisbursed
amount of all letters of credit outstanding as of such date of determination) to
(y) current liabilities (excluding therefrom the outstanding balance on the
Loan). This calculation will not include the effects, if any, of marking to
market Hedging Obligations pursuant to Financial Accounting Standards Board
Statement No. 133.

                  (b) Minimum Net Worth. The Borrower shall have a net worth of
not less than the amount established by the next sentence on the Closing Date,
and thereafter shall maintain at all times the minimum net worth requirement as
changed annually on the following basis. During 2006 the Borrower's minimum net
worth requirement shall be $69,832,406.00, being 90% of the actual net worth
number contained in the Borrower's interim financial statement (as of March 31)
most recently submitted to the Agent before the Closing Date ($77,591,563.00).
Thereafter, this minimum net worth requirement shall be changed annually by the
Agent after the end of each fiscal year as to the amount to be met during the
new calendar year, with the amount to be met during the new calendar year
(tested quarterly as of the last day of each fiscal quarter) being increased
(but not reduced) by the sum of (x) fifty (50%) percent of the Borrower's prior
fiscal year's positive net income plus (y) one hundred (100%) percent of the net
proceeds from stock or other equity offerings of any nature by the Borrower or
any Subsidiary (including without limitation any Qualified Redeemable Preferred
Equity). For purposes of this covenant, the non-cash effects, if any, of Hedging
Agreements pursuant to Financial Accounting Standards Board Rule No. 133
(Accounting for Derivative Instruments and Hedging Activities) will not be
included, nor will the effect, if any, of fair value adjustments or ceiling test
write-downs pursuant to Regulation S-X 4-10 of the Securities and Exchange
Commission be included.

                  (c) Minimum EBITDA to Interest Expense. The Borrower shall
maintain, on a quarterly basis as of the last day of each fiscal quarter, a
ratio (on a rolling four fiscal quarter basis) of EBITDA to Interest Expense
during the four preceding fiscal quarters of not less than 3.00 to 1.00.

                  (d) Calculation. The Borrower acknowledges that any
outstanding Qualified Subordinated Debt and any Qualified Redeemable Preferred
Equity shall be counted and included as Debt for purposes of the financial
covenants in this Section 5.15. Without limiting the foregoing, the dividends
payable under the Qualified Redeemable Preferred Equity shall be counted and
included within Interest Expense for purposes of the financial covenant in
Subsection 5.15(c).

                  Section 5.16 Bank Accounts. (a) The Borrower shall maintain
(and cause to be maintained) with the Agent the Companies' primary operating,
money market/treasury management, collection and disbursement accounts,
including without limitation as provided in Section 5.17.

                                      -50-
<PAGE>
                  (b) The Borrower hereby grants to the Agent for the benefit of
the Secured Parties a continuing security interest in all of Borrower's deposit
accounts now existing or hereafter maintained with Agent as security for the
Secured Liabilities, and all funds, investment property and proceeds pertaining
thereto.

                  (c) The Agent will be granted security interests by the
Subsidiaries in all of their respective deposit accounts (if any) (separate from
the Borrower's deposit accounts) maintained with Agent as security for the
Secured Liabilities, and all funds, investment property and proceeds pertaining
thereto.

                  Section 5.17 Revenues. (a) The Borrower and Endeavor each
shall immediately deposit daily all payments for oil or natural gas sales from
the Borrower's properties (whether or not such property is Collateral), or for
resales thereof by Endeavor, to a revenue clearing deposit account with the
Agent at all times. All such deposits shall be made no later than the first
Business Day after collection by such Company. Without limiting the foregoing,
the Borrower shall use its best efforts to cause all Operators of any Company's
Collateral or purchasers from the Borrower or any Subsidiary (including
Endeavor) which make payments for oil or natural gas sales or purchases by
electronic transfer payments to change such electronic payments to be made
directly to Borrower's or such Subsidiary's accounts with the Agent. (The
foregoing covenant is separate from the Agent's right after an Event of Default
to send letters in lieu of transfer orders signed by the Borrower under Sections
3.1(a)(x) and 8.2(c) below.)

                  (b) The Borrower, the Agent and the Banks acknowledge that
Collateral is comprised in part of the Borrower's undivided interests in mineral
properties for which the Borrower is operator, and accordingly a portion of the
payments made to the Borrower from the sale of hydrocarbons from such properties
may be owed by the Borrower to the non-operator working interest owners or to
royalty or overriding royalty owners. In the event that revenues of another
Person attributable to such other Person's working interest or royalty or
overriding royalty interest ("Other Revenues") are deposited into the revenue
clearing account at the Agent, then the Agent and the Banks agrees that such
Other Revenues will be released by the Agent to such Persons (even if an Event
of Default has occurred and is continuing) upon the receipt by the Agent of
appropriate evidence that such funds are Other Revenues (i.e., are not the
Borrower's funds). The Agent and the Banks shall not be liable, however, for any
actions by Agent which are taken in compliance with the terms of this Agreement
and the Collateral Documents with respect to funds in the revenue clearing
account that are Other Revenues and which are taken before Agent received such
evidence that such funds are Other Revenues.

                  (c) Upon the occurrence of any Event of Default, the Borrower
shall upon Agent's or the Required Banks' request execute such division orders,
transfer orders or letters in lieu thereof as are necessary to direct that all
payments of mineral production due to the Borrower from its properties are paid
directly to the Agent, including as further provided in the Deed of Trust.

                                      -51-
<PAGE>
                  Section 5.18 Hedging Program. At all times when the Percentage
Outstanding exceeds seventy-five (75%), the Borrower shall enter into and
maintain in effect a hedging program (the "Hedging Program") consisting of
Permitted Hedge Agreements that are mutually satisfactory to the Agent, the
Required Banks and the Borrower. Without limiting the foregoing, the Borrower
acknowledges the Agent's and the Banks' general expectation that at such time
the Permitted Hedge Agreements comprising the Hedging Program (i) shall in no
contract fix a price for a term of more than three (3) years, and (ii) in the
aggregate shall cover no more than seventy-five (75%) percent of the Borrower's
projected oil and gas PDP production set forth in the most recent third party
engineering report.

                  Section 5.19 Payables. The Companies shall pay all accounts
payable for which applicable law grants the account holder a Lien against any
property of such Company within 60 days from the date such payable is due and
owing; provided, however, such Company shall not be required to pay any such
account if the amount or validity thereof shall currently be contested in good
faith by appropriate proceedings diligently conducted and if such Company shall
have set up reserves therefore adequate under generally accepted accounting
principles (provided that such reserves may be set up under generally accepted
accounting principles) and so long as such contest proceedings conclusively
operate to stay the sale of any property subject to such Lien to satisfy such
account.

                  Section 5.20 Diamond Note. The Borrower shall cause all loan
advances made by the Borrower to Diamond to be evidenced by a negotiable
promissory note which (i) is payable to the order of the Borrower, (ii) waives
Diamond's right to set off, (iii) is secured by a security interest in all of
Diamond's drilling rigs, and (iv) is otherwise (together with the related
security agreement and UCC financing statement by Diamond as debtor) in form and
substance reasonably satisfactory to the Agent. The Borrower shall execute a
security agreement pledging the Diamond Note, and endorse and deliver the
Diamond Note to the Agent, together with a UCC-3 Amendment Statement. The
Borrower shall further cause Diamond to execute and deliver an acknowledgment of
the pledge of the Diamond Note by the Borrower to the Agent as further security
for the Secured Liabilities, in form and substance reasonably satisfactory to
the Agent. The Borrower shall make an initial or subsequent loan advance to
Diamond only if such advance (x) is evidenced by the Diamond Note, and (y) is in
compliance with Subsection 6.3(h). The Borrower shall not agree to any
amendment, modification or waiver of the terms of the Diamond Note or the
security agreement securing it or agree to any subordination pertaining to
either, in each case without the prior written consent of the Agent and the
Required Banks.

                                    ARTICLE 6

                               NEGATIVE COVENANTS

                  Unless the Agent's and the Required Banks' (or if required by
Section 10.4 hereof, all of the Banks) prior written consent to the contrary is
obtained, the Borrower will at all times

                                      -52-
<PAGE>
comply with the covenants contained in this Article 6 (including where
applicable, without the necessity of expressly so stating in each instance,
causing its Subsidiaries to comply with such covenant), from the date hereof and
for so long as any part of the Indebtedness is outstanding.

                  Section 6.1 Debts, Guaranties and Other Obligations. Each
Company will not incur, create, assume or in any manner become or be liable in
respect of any Debt direct or contingent, except for:

                  (a)      The Indebtedness to the Agent and the Banks under
                           this Agreement and the Notes.

                  (b)      Customary trade payables or operating leases, and
                           endorsements of negotiable instruments for deposit or
                           collection, all from time to time incurred in the
                           ordinary course of business.

                  (c)      Debt under operating agreements, unitization and
                           pooling agreements and orders, farmout agreements and
                           gas balancing agreements, in each case that are
                           customary in the oil, gas and mineral production
                           business and that are entered into in the ordinary
                           course of business. [For the avoidance of doubt, it
                           is acknowledged that this covenant is separate and
                           independent of the Event of Default under Section
                           8.1(n).]

                  (d)      Taxes, assessments or other government charges which
                           are not yet due or are being contested in good faith
                           by appropriate action promptly initiated and
                           diligently conducted, if such reserve as shall be
                           required by generally accepted accounting principles
                           shall have been made therefor.

                  (e)      Hedging Obligations incurred under Permitted Hedge
                           Agreements.

                  (f)      Debt owing by a Subsidiary to the Borrower.

                  (g)      The PVOG Production Payment; provided, the Borrower
                           shall not (i) prepay any portion of such Debt before
                           it is due while a Default has occurred and is
                           continuing, (ii) allow the amount owing thereunder to
                           exceed at any one time $2,050,000.00

                                      -53-
<PAGE>
                           outstanding, nor (iii) amend any of the documents
                           evidencing or pertaining to the PVOG Production
                           Payment as in effect on the Closing Date or enter
                           into any new agreements pertaining thereto which
                           affect the terms of the PVOG Production Payment
                           adversely to the Borrower, in each case without the
                           Agent's and the Required Banks' prior written
                           consent.

                  (h)      Qualified Subordinated Debt, and Qualified Redeemable
                           Preferred Equity, in combined amounts (as provided in
                           the definitions thereof) which do not exceed the
                           Maximum Subordinated Amount, provided that the
                           conditions in Sections 6.10 and 6.11 are satisfied.

                  Section 6.2 Liens. The Borrower will not, and will not allow
or suffer any Subsidiary to, create, incur, assume or permit to exist any Lien
on any of its property now owned or hereafter acquired, except for:

                  (a)      Liens for taxes, assessments, or other governmental
                           charges not yet due or which are being contested in
                           good faith by appropriate action promptly initiated
                           and diligently conducted, if such reserve as shall be
                           required by generally accepted accounting principles
                           shall have been made therefor, and so long as the
                           payment of same is not a condition to be met in order
                           to maintain in force such Person's interest in such
                           property or (if applicable) the Agent's first Lien
                           therein.

                  (b)      Liens of landlords, vendors, carriers, warehousemen,
                           mechanics, laborers and materialmen arising by law in
                           the ordinary course of business for sums either not
                           more than 90 days past due or being contested in good
                           faith by appropriate action promptly initiated and
                           diligently conducted, if such reserve as shall be
                           required by generally accepted accounting principles
                           shall have been made therefor, and so long as the
                           payment of same is not a condition to be met in order
                           to maintain in force such Person's interest in such
                           property or (if applicable) the Agent's first Lien
                           therein.

                                      -54-
<PAGE>
                  (c)      Inchoate liens arising under ERISA to secure the
                           contingent liability of the Borrower permitted by
                           this Agreement.

                  (d)      The pledge of the Collateral and any other Liens in
                           favor of the Agent to secure on a pari passu basis,
                           (i) the Indebtedness of the Borrower to the Agent and
                           the Banks and (ii) (in some or all cases as
                           determined by the Banks) the Secured Hedge
                           Obligations permitted hereby.

                  (e)      Minor imperfections of title or non-monetary Liens
                           that do not materially impair the development,
                           operation or value of property in its intended use or
                           the title thereto and which are of a nature commonly
                           existing with respect to properties of a similar
                           character as the Collateral.

                  (f)      Royalties, overriding royalties, net profits
                           interests, production payments, reversionary
                           interests, calls on production, preferential purchase
                           rights and other burdens on or deductions from the
                           proceeds of production, that do not secure Debt for
                           borrowed money and that are taken into account in
                           computing the net revenue interests and working
                           interests of the Borrower warranted in the Collateral
                           Documents.

                  (g)      Operating agreements, unitization and pooling
                           agreements and orders, farmout agreements, gas
                           balancing agreements and other agreements, in each
                           case that are customary in the oil, gas and mineral
                           production business in the general area of such
                           property and that are entered into in the ordinary
                           course of business in good faith. [For the avoidance
                           of doubt, it is acknowledged that this covenant is
                           separate and independent of the Event of Default
                           under Section 8.1(n).]

                  (h)      Judgment Liens arising in the ordinary course of
                           business (provided the litigation is actively being
                           contested in good faith and by appropriate

                                      -55-
<PAGE>
                           proceedings) and which do not constitute an Event of
                           Default under Section 8.1(j).

                  (i)      Liens resulting from good faith deposits to secure
                           payments of workmen's compensation or other social
                           security programs (excluding Liens under Section 4068
                           of ERISA) or to secure the performance of bids,
                           tenders, statutory obligations, surety and appeal
                           bonds, contracts (other than for payment of debt) or
                           operating leases, in each case made in the ordinary
                           course of business.

                  (j)      The PVOG Production Payment (non-recourse to the
                           Borrower except as provided in the definition
                           thereof).

                  (k)      Liens securing Qualified Subordinated Debt, fully
                           subordinated to the Liens securing the Secured
                           Liabilities under an Intercreditor Agreement
                           satisfactory to the Agent.

The inclusion of this Section 6.2 shall not constitute in any way an
acknowledgment by the Agent and the Banks of the validity, legality,
enforceability or binding effect on the Agent and the Banks of such Liens, the
sole purpose of this provision being to provide that the existence of any such
permitted Liens shall not in and of itself constitute an Event of Default under
this Agreement.

                  Section 6.3 Investments, Loans and Advances. The Borrower will
not (directly or indirectly through any Subsidiary), and will not allow or
suffer any Subsidiary to, make or permit to remain outstanding any loans or
advances or extensions of credit to, or purchases or other acquisitions of
capital stock or ownership (direct or beneficial) interests or obligations of,
or other investments in, any Person (including without limitation any
Subsidiary), except for:

                  (a)      Investments in readily marketable direct obligations
                           of the United States of America or any agency
                           thereof.

                  (b)      Investments in either certificates of deposit of
                           maturities less than one year issued by the Agent or
                           any Bank, or, if no Bank is substantially competitive
                           (in terms of its certificate of deposit interest rate
                           for comparable amounts) with other banks (having a
                           credit rating equal or better than the

                                      -56-
<PAGE>
                           Banks), then certificates of deposit of maturities
                           less than one year issued by one or more of such
                           other banks.

                  (c)      Investments in commercial paper of maturities less
                           than one year with the best rating by Standard &
                           Poors, Moody's Investors Service, Inc., or any other
                           rating agency satisfactory to the Agent.

                  (d)      Routine advances to employees made in the ordinary
                           course of business, and that do not exceed historical
                           levels in a material manner.

                  (e)      Advances pursuant to operating agreements,
                           unitization and pooling agreements and orders,
                           farmout agreements and gas balancing agreements, in
                           each case that are customary in the oil, gas and
                           mineral production business and that are entered into
                           in the ordinary course of business.

                  (f)      Accounts receivable created or acquired in the
                           ordinary course of business and upon terms common in
                           the industry for such accounts.

                  (g)      The Borrower's ownership of equity interests in
                           Endeavor, and in Diamond, provided that the total
                           amount of the Borrower's investment (both debt and
                           equity) in Diamond at any one time (i) shall not
                           exceed a maximum limit of fifteen million
                           ($15,000,000.00) dollars and (ii) shall not consist
                           of more than 50% equity.

                  (h)      Loans and advances made by the Borrower to its
                           Subsidiaries in the ordinary course of business to be
                           used in normal business operations of such
                           Subsidiary, provided that with respect to any loan to
                           Diamond, (i) such loans by the Borrower to Diamond
                           shall not violate the limit in paragraph (g) of this
                           Section, (ii) all loan advances by the Borrower to
                           Diamond are evidenced by the Diamond Note issued by
                           Diamond to the Borrower, and secured by a security
                           interest in Diamond's drilling rigs, which Diamond
                           Note and security

                                      -57-
<PAGE>
                           agreement shall be subject to a first priority pledge
                           by the Borrower to the Agent, and (iii) such loan is
                           otherwise in compliance with Section 5.20.

For the avoidance of doubt, pursuant to the foregoing the Borrower shall not
establish, acquire or otherwise own any new Subsidiary after the Closing Date,
without in each case the prior written consent of the Agent and the Required
Banks.

                  Section 6.4 Nature of Business. The Borrower will not permit
any material change to be made in the character of its business as carried on at
the date hereof.

                  Section 6.5 Mergers and Consolidations. The Borrower will not,
and will not allow or suffer any Subsidiary to, acquire, merge with or
consolidate with any Person or acquire by purchase, lease or otherwise all or
substantially all of the assets of any Person (whether or not such acquisition,
merger or consolidation requires any capital expenditures on the part of the
Borrower).

                  Section 6.6 ERISA Compliance. The Borrower will not at any
time permit any Plan maintained by it to engage in any "prohibited transaction"
as such term is defined in Section 4975 of the Code; incur any "accumulated
funding deficiency" as such term is defined in Section 302 of ERISA; or
terminate any such Plan in a manner which could result in the imposition of a
Lien on the property of the Borrower pursuant to Section 4068 of ERISA.

                  Section 6.7 Changes. Each Company will not without 30 days
prior notice to the Agent change the location of any of its Collateral, or
change the location of its state of organization or chief executive office or
change its name.

                  Section 6.8 Sales. The Borrower will not, and will not allow
or suffer any Subsidiary to, sell, assign, transfer by bond for deed, lease or
otherwise dispose of (whether in one transaction or in a series of transactions)
all or substantially all of its property (whether now owned or hereafter
acquired) to any Person. The Borrower will not, and will not allow or suffer any
Subsidiary to, sell, assign, transfer by bond for deed, lease or otherwise
dispose (including by any sale-leaseback transaction) of any of its Collateral
or any material portion of its other property, business, or assets, including
without limitation any producing mineral properties or equity interests in a
Subsidiary, except for sales of production (in compliance with the terms of the
Collateral Documents and this Agreement), collection of its accounts, sales of
items of equipment which are obsolete or otherwise no longer useful for such
Person's operations, and sales of items of equipment to the extent the proceeds
of such sale are promptly reinvested in the acquisition of replacement
equipment, in each case in the ordinary course of business. For purposes of the
preceding sentence, "material" means asset sales which exceed in the aggregate
$100,000.00 during any one fiscal year.

                  Section 6.9 Agreements. Each Company will not enter into or be
a party to any contract or agreement for the purchase of materials, supplies or
other property or services if

                                      -58-
<PAGE>
such contract or agreement shall require that such Company make payment for such
materials, supplies or other property irrespective of whether delivery thereof
is made or whether such services are rendered. Except in the ordinary course of
business, each Company will not enter into any arrangement with any gas pipeline
company or any other purchaser of hydrocarbons regarding the Collateral whereby
the Company agrees that said gas pipeline company or purchaser may set off any
claim against the Company by withholding payment for any hydrocarbons actually
delivered.

                  Section 6.10 Distributions or Redemption. The Borrower will
not (i) pay or declare any dividend on any shares of any class of its stock
(other than stock dividends), (ii) make any other distribution or other
shareholder expenditure on account of any shares of any class of its stock, nor
set aside any funds for such purpose, nor (iii) otherwise make or agree to pay
for or make, directly or indirectly, any other distribution with respect to any
shares of any class of its stock, or any payment (whether in cash, securities or
other property), including any sinking fund or similar deposit, on account of
the purchase, redemption, retirement, acquisition, cancellation or termination
of any such shares or any option, warrants or other right to acquire any such
shares, except that if at the time thereof and immediately after giving effect
thereto no Default or Event of Default shall have occurred and be continuing (or
be created), and no Loan Excess shall then exist, the Borrower may declare, and
agree to declare and pay, dividends (interest expense) in cash to the holders of
Qualified Redeemable Preferred Equity, and the Borrower may make and pay such
cash dividends so declared within thirty (30) days of such declaration. For the
avoidance of doubt, shares of Qualified Redeemable Preferred Equity are
Borrower's stock for purposes of clauses (i), (ii) and (iii) above, and the
Borrower shall not elect (or agree to elect) any option to redeem any Qualified
Redeemable Preferred Equity without the prior written consent of the Required
Banks.

                  Section 6.11 Subordinated Financings. (a) The Borrower shall
not make any cash or other payment or transfer of property (i) on account of any
Qualified Subordinated Debt except as expressly permitted under the
Intercreditor Agreement pertaining thereto and (ii) on account of any Qualified
Redeemable Preferred Equity except as expressly permitted under Section 6.10
hereof.

                  (b) The Borrower shall not enter into the initial closing and
funding of any Qualified Subordinated Debt or Qualified Redeemable Preferred
Equity without the Agent's prior written approval as to the form and substance
of the documentation pertaining thereto, based upon the Agent's receipt of a
certificate of an officer of the Borrower attaching true, correct and complete
copies thereof (including without limitation a copy of the prospectus for any
Qualified Redeemable Preferred Equity). The Borrower shall not enter into or
agree to any amendment, modification or waiver of any term or condition of, or
any of its rights under, the documents pertaining to any issued Qualified
Subordinated Debt or any issued Qualified Redeemable Preferred Equity, which
amendment, modification or waiver could, in the reasonable opinion of the Agent,
materially and adversely affect the interests of the Banks.

                                      -59-
<PAGE>
                  Section 6.12 Management. The Borrower will not permit or
suffer a change in the key management of the Borrower and its Affiliates to
occur. For purposes of this Section, key management shall mean the continued
active full time employment of each of Ken Kenworthy, Jr. (as CEO and President)
and Ken Kenworthy Sr. (as CFO and EVP); provided, however, that the cessation of
active employment of one such officer due to death or disability or the
retirement of Ken Kenworthy Sr. (as CFO and EVP) shall not be a Default
hereunder so long as the Borrower hires or promotes a replacement officer with
experience and qualifications reasonably acceptable to the Agent and the
Required Banks within four (4) months of the former officer's cessation of
activity.

                  Section 6.13 Change of Ownership or Control. (a) No Person or
group (as defined in Section 13(d)(3) of the Securities Exchange Act of 1934),
other than existing management of Borrower as of the Closing Date, shall become
the beneficial owner of more than 33% of the total voting power of the capital
stock of the Borrower then outstanding.

                  (b) A majority of the members of the Board of Directors of the
Borrower shall not cease to be Continuing Directors. For purposes of this
Section, the term "Continuing Directors" of a Person means any member of such
Person's Board of Directors who: (x) was a member of such Person's Board of
Directors on the Closing Date; or (y) was nominated for election or elected with
the approval of a majority of the Continuing Directors who were then members of
such Person's Board of Directors (but excluding any such individual whose
initial assumption of office occurs as a result of either an actual or
threatened election contest or other actual or threatened solicitation of
proxies or consents by or on behalf of a Person other than the Continuing
Directors).

                  Section 6.14 Transactions with Affiliates. The Borrower will
not sell, transfer, lease or otherwise dispose of (including pursuant to any
merger) any property or assets to, or purchase, lease or otherwise acquire
(including pursuant to a merger) any property or assets from, or otherwise
engage in any other transactions with, any Affiliates, except in the ordinary
course of business at prices and on terms and conditions not less favorable to
the Borrower as could be obtained on an arms-length basis from unrelated third
persons in a comparable transaction.

                  Section 6.15 Subsidiaries. The Borrower will not allow or
suffer any changes to be made in the ownership structure of each Subsidiary, and
shall not own and control directly or indirectly less than one hundred (100%)
percent of the ownership and voting rights in each Subsidiary. The Borrower will
not create, incur, assume or permit to exist any Lien on its equity interest in
any Subsidiary, other than in favor of the Agent.

                  Section 6.16 Restrictive Agreements. The Borrower will not
directly or indirectly enter into, incur or permit to exist, or permit any
Subsidiary so to do, any agreement or other arrangement that (i) prohibits,
restricts or imposes any condition upon the ability of a Subsidiary to create,
incur or permit to exist any Lien upon any of its property or assets or (ii)

                                      -60-
<PAGE>
prohibits, restricts or imposes any condition upon the ability of any Subsidiary
to pay dividends or other distributions with respect to any shares of its equity
securities or other ownership interest or to repay to the Borrower any loans or
advances, provided that (x) the foregoing shall not apply to restrictions and
conditions imposed by corporate law or by this Agreement and (y) clause (i) of
this Section shall not apply to customary provisions in leases restricting the
transfer thereof.

                                    ARTICLE 7

                              CONDITIONS OF LENDING

                  Section 7.1 Conditions of Lending. The obligation of the Banks
to make the Loan (or the Issuing Bank to issue a standby letter of credit) is
subject to the accuracy of each and every representation and warranty of the
Borrower contained in this Agreement, the absence of a Default or an Event of
Default, and to the receipt of the following on or before the Closing Date by
the Agent (and the receipt by each Bank of a counterpart of this Agreement and
its respective Note):

                  (a)      Agreement. A duly executed counterpart of this
                           Agreement signed by all the parties hereto.

                  (b)      Notes. The duly executed Notes signed by the
                           Borrower.

                  (c)      Good Standing. Certificates of good standing of the
                           Companies issued by the Secretaries of State of
                           Oklahoma, Texas, Louisiana and New Mexico.

                  (d)      Corporate Certificates. A certificate of the
                           secretary of each Company (i) setting forth
                           resolutions of its board of directors in form and
                           substance satisfactory to the Agent and Agent's
                           counsel with respect to the unanimous authorization
                           of this Agreement, the Notes and the Collateral
                           Documents to which it is a party, (ii) attaching the
                           articles of incorporation and bylaws of such Company,
                           and (iii) setting forth the officers authorized to
                           sign such instruments.

                  (e)      Fees. The fees required by Subsections 2.5(a) and
                           (d).

                                      -61-
<PAGE>
                  (f)      Collateral Documents. Duly executed restatements of,
                           or supplements to, mortgages or deeds of trust,
                           security agreements, and guaranty agreement.

                  (g)      Stock Certificates. The original stock certificates
                           held by the Borrower for its shares in Endeavor, duly
                           endorsed in blank and delivered to the Agent with
                           executed stock powers.

                  (h)      Lien Searches. UCC lien searches satisfactory to the
                           Agent from Oklahoma, Texas and other pertinent states
                           pertaining to the Companies.

                  (i)      Legal Opinion. Legal Opinion from the Borrower's
                           counsel (Crowe & Dunlevy) in form, scope and
                           substance satisfactory to the Agent and Agent's
                           counsel.

                  (j)      Legal Fees. Payment of the reasonable legal fees and
                           expenses incurred by the Agent in accordance with
                           Section 5.7.

                  (k)      Termination. After giving effect to the application
                           of proceeds of the Advances on the Closing Date, the
                           Indebtedness under the Prior Loan Agreement shall
                           have been fully repaid.

In the event that the Agent and the Required Banks in their sole and absolute
discretion waive the receipt of any items set forth above, the Borrower agrees
that it nonetheless will promptly deliver such item to the Agent and the Banks
upon request within the time period reasonably specified by the Agent. Until
such conditions are satisfied, Section 11.3 shall apply.

                  Section 7.2 Certification. The obligation of the Banks to make
the Loan is further subject to the certification by the Borrower, which the
Borrower hereby makes, that no Default or Event of Default exists, and that no
material adverse change (in the Agent's and the Required Banks' sole
determination) in the Collateral or other assets, liabilities, financial
condition, business operations, affairs or circumstances of the Companies or
other facts, circumstances or conditions (financial or otherwise) upon which
Agent and the Banks has relied or utilized in making its decision to make this
Loan have occurred from those reflected in the most recent financial statements
furnished to the Agent prior to the Closing Date or otherwise existing at the
time of the issuance of Agent's commitment letter.

                                      -62-
<PAGE>
                  Section 7.3  Post-Closing Items. (a) The Borrower will furnish
the Agent no later than August 8, 2006, with (i) an executed supplement to the
Texas Deed of Trust, (ii) an executed New Mexico mortgage or deed of trust, and
(iii) title opinions and title opinion updates, in each case covering the
Borrower's interest in producing wells drilled after the Closing Date under the
Prior Loan Agreement (or otherwise not previously mortgaged as Collateral), and
in each case in form, scope and substance satisfactory to Agent and Agent's
counsel, and indicating that Borrower has good and marketable title to the
interest in such new Collateral subject to no Liens other than the Collateral
Documents and those accepted by Agent in writing.

                  (b) Certain properties included within the Borrowing Base from
time to time at zero or low value may not be covered by title opinions at the
time of their inclusion in the Borrowing Base. The Borrower acknowledges and
agrees that the Agent has the right under the terms of this Agreement to require
title opinions on such Borrowing Base properties in the future at the time of a
material increase in the value attributed to such property in the Borrowing
Base, and Borrower agrees promptly to deliver such title opinions and
acknowledges that in the absence thereof such properties may be excluded by the
Agent from the Borrowing Base (as provided in the definition of Borrowing Base).

                  Section 7.4  Each Additional Advance. The obligation of the
Banks to make additional Advances on the line of credit or the Issuing Bank to
issue standby letters of credit is subject to the satisfaction of each of the
following conditions:

                  (a)      Each of the representations and warranties of the
                           Companies contained in this Agreement and the
                           Collateral Documents shall be true and correct on and
                           as of the date of each subsequent Advance or
                           issuance, both before and after giving effect to the
                           proposed Advance or issuance and to the application
                           of the proceeds therefrom, as though made on and as
                           of such date, except as such representations and
                           warranties relate to matters that are changed as
                           permitted by this Agreement, or except to the extent
                           such representations and warranties by their terms
                           specifically refer and relate to an earlier date, in
                           which case such representations and warranties shall
                           have been true and correct on and as of such earlier
                           date.

                  (b)      At the time of such Advance, no Default shall have
                           occurred and be continuing.

                  (c)      There shall have occurred no material adverse change
                           (in the Agent's and the Required Banks' sole

                                      -63-
<PAGE>
                           determination), either individually or in the
                           aggregate, in the assets, liabilities, financial
                           condition, business operations, affairs or
                           circumstances of the Borrower and the Subsidiaries
                           taken as a whole, except to the extent that such
                           changes are permitted by this Agreement.

                  (d)      If reasonably required by Agent, a bringdown title
                           search report by a landman or land title service in
                           the appropriate states, confirming the absence of
                           Lien filings against the Borrower since the effective
                           date of the preceding bringdown search.

                  Section 7.5  Title Opinions. It is expressly acknowledged by
the Borrower that the waiver by the Borrower (on the basis of the Borrower's
business judgment) of any title requirements contained in any title opinions
delivered to the Agent from time to time in connection with this Agreement, and
funding by the Banks of Advances, shall not constitute a waiver by the Agent and
the Banks of any of the representations or warranties of the Borrower contained
herein.

                                    ARTICLE 8

                                     DEFAULT

                  Section 8.1  Events of Default. Any of the following events
shall be considered an "Event of Default" as that term is used herein:

                  (a)      Principal and Interest Payments. The Borrower fails
                           to make payment (x) when due of any principal or
                           interest installment on any Note, any unused facility
                           fee, any commitment fee, engineering fee or any other
                           Indebtedness incurred pursuant to this Agreement to
                           the Agent or any Bank, and such failure continues
                           unremedied for a period of three (3) Business Days
                           after the earlier of (i) notice thereof being given
                           by the Agent to the Borrower or (ii) such default
                           otherwise becoming known to the president or chief
                           financial officer of the Borrower or (y) when due of
                           any mandatory prepayment under Subsection 2.4(b) or
                           Subsection 2.4(c).

                  (b)      Representations and Warranties. Any representation or
                           warranty made by or on behalf of any Company

                                      -64-
<PAGE>
                           contained in this Agreement, the Notes or any of the
                           Collateral Documents proves to have been incorrect in
                           any material respect as of the date thereof; or any
                           representation, statement (including financial
                           statements), certificate or data furnished or made to
                           the Agent and the Banks by any Person under this
                           Agreement, the Notes or any of the Collateral
                           Documents proves to have been untrue in any material
                           adverse respect as of the date as of which the facts
                           therein set forth were stated or certified. For
                           purposes of this paragraph, to the extent such
                           representation or warranty pertains to individual
                           properties, "material" shall mean two hundred
                           thousand ($200,000.00) dollars or amount of property
                           with an equivalent value.

                  (c)      Specific Covenants. The Borrower fails to observe or
                           perform at any time any covenant or agreement
                           contained in Section 5.6, Section 5.8, Section 5.15,
                           Section 5.16, Section 5.17, or Article 6 of this
                           Agreement.

                  (d)      Covenants. The Borrower or other Person (other than
                           the Agent and the Banks) defaults in the observance
                           or performance of any of the covenants or agreements
                           contained in this Agreement, the Notes or any of the
                           Collateral Documents to be kept or performed by the
                           Borrower or such Person (other than a default under
                           Subsections (a) through (c) hereof), and such default
                           continues unremedied for a period of 30 days after
                           the earlier of (i) notice thereof being given by the
                           Agent to the Borrower or such Person, as applicable,
                           or (ii) such default (and the fact that it is a
                           default) otherwise becoming known to the president or
                           chief financial officer of the Borrower or other
                           Person, as applicable.

                  (e)      Other Debt to Agent or Bank. The Borrower or any
                           other Company defaults in the payment of any amounts
                           due to the Agent or any Bank not covered under
                           Subsection (a) above or in the observance or
                           performance of any of the covenants, or agreements
                           contained in any loan agreements, notes, leases,

                                      -65-
<PAGE>
                           collateral or other documents relating to any other
                           Debt of the Borrower to the Agent or any Bank
                           (including without limitation any Permitted Hedge
                           Obligations or other Hedge Agreements) other than the
                           Indebtedness, and any grace period applicable to such
                           default has elapsed.

                  (f)      Other Debt to Other Lenders. The Borrower defaults
                           (x) under the PVOG Production Payment, (y) under any
                           Qualified Subordinate Debt, or (z) in the payment of
                           any amounts due to any Person (other than the Agent
                           and the Banks) or in the observance or performance of
                           any of the covenants or agreements contained in any
                           credit agreements, notes, leases, collateral or other
                           documents relating to any Debt of the Borrower to any
                           Person (other than the Agent or any Bank) which is
                           not Indebtedness (including without limitation any
                           Hedging Obligations) in excess of $50,000.00, and in
                           each case of clause (x), (y) or (z) any grace period
                           applicable to such default has elapsed or if the
                           effect of such default is to cause, or permit the
                           holder of such obligation to be able to cause
                           (whether or not so done), such obligation to become
                           due prior to its stated maturity.

                  (g)      Involuntary Bankruptcy or Receivership Proceedings. A
                           receiver, conservator, liquidator or trustee of any
                           Company, or of any of its respective Collateral, is
                           appointed by order or decree of any court or agency
                           or supervisory authority having jurisdiction; or an
                           order for relief is entered against any Company under
                           the Federal Bankruptcy Code; or any Company is
                           adjudicated bankrupt or insolvent; or any material
                           portion of the property of is sequestered by court
                           order and such order remains in effect for more than
                           30 days after such party obtains knowledge thereof;
                           or a petition is filed against any Company under any
                           reorganization, arrangement, insolvency, readjustment
                           of debt, dissolution, liquidation or receivership law
                           of any jurisdiction, whether now or

                                      -66-
<PAGE>
                           hereafter in effect, and such petition is not
                           dismissed within 60 days.

                  (h)      Voluntary Petitions. Any Company files a case under
                           the Federal Bankruptcy Code or seeking relief under
                           any provision of any bankruptcy, reorganization,
                           arrangement, insolvency, readjustment of debt,
                           dissolution or liquidation law of any jurisdiction,
                           whether now or hereafter in effect, or consents to
                           the filing of any case or petition against it under
                           any such law.

                  (i)      Assignments for Benefit of Creditors. Any Company
                           makes an assignment for the benefit of its creditors,
                           or admits in writing its inability to pay its debts
                           generally as they become due, or consents to the
                           appointment of a receiver, trustee or liquidator of
                           any Company or of all or any part of its property.

                  (j)      Undischarged Judgments. Judgment for the payment of
                           money in excess of $50,000.00 (which is not covered
                           by insurance) is rendered by any court or other
                           governmental body against any Company, and such
                           Company does not discharge the same or provide for
                           its discharge in accordance with its terms, or
                           procure a stay of execution thereof within 30 days
                           from the date of entry thereof, and within said
                           30-day period or such longer period during which
                           execution of such judgment shall have been stayed,
                           appeal therefrom and cause the execution thereof to
                           be stayed during such appeal while providing such
                           reserves therefor as may be required under generally
                           accepted accounting principles.

                  (k)      Attachment. A writ or warrant of attachment or any
                           similar process shall be issued by any court against
                           all or any material portion of the property of any
                           Company, and such writ or warrant of attachment or
                           any similar process is not released or bonded within
                           30 days after its entry.

                                      -67-
<PAGE>
                  (l)      Condemnation. The Collateral, or any substantial
                           portion thereof, is condemned or expropriated under
                           power of eminent domain by any legally constituted
                           governmental authority.

                  (m)      Invalidity. Any Company shall assert in writing that
                           any material provision of this Agreement, any Note or
                           any of the Collateral Documents shall for any reason
                           be or cease to be valid and binding on such Company
                           after the Closing Date.

                  (n)      Debt to Operator. On the last day of any calendar
                           month the Borrower has owed any Operator (not
                           counting the PVOG Production Payment) the cumulative
                           amount of $200,000.00 or greater for more than
                           forty-five consecutive days without the Agent's and
                           the Required Banks' written consent; provided,
                           however, such Debt shall not be an Event of Default
                           and such Company shall not be required to pay any
                           such account if the amount or validity thereof shall
                           currently be contested in good faith by appropriate
                           proceedings diligently conducted and if such Company
                           shall have set up reserves therefore adequate under
                           generally accepted accounting principles (provided
                           that such reserves may be set up under generally
                           accepted accounting principles) and so long as such
                           contest proceedings conclusively operate to stay and
                           prevent the set off or withholding of monies by such
                           Operator and the sale or seizure of any property
                           subject to any Lien held by such Operator to satisfy
                           such account.

                  (o)      Qualified Redeemable Preferred Equity. The Borrower
                           defaults in the payment of any amounts due under or
                           in the observance or performance of any of the
                           covenants or agreements contained in any documents
                           pertaining to any Qualified Redeemable Preferred
                           Equity, and any grace period applicable to such
                           default has elapsed; or any shares of Qualified
                           Redeemable Preferred Equity shall for any reason
                           become subject to mandatory redemption by the
                           Borrower before the fifth anniversary of the date on
                           which such shares are issued; or any judgment for

                                      -68-
<PAGE>
                           redemption of any shares of Qualified Redeemable
                           Preferred Equity is rendered by any court or other
                           governmental body; or if any event or condition
                           occurs that results in any shares of Qualified
                           Redeemable Preferred Equity becoming redeemable or
                           that enables or permits (with or without the giving
                           of notice, the lapse of time or both) the holder of
                           any shares of any Qualified Redeemable Preferred
                           Equity to cause any shares of any Qualified
                           Redeemable Preferred Equity to be redeemable or to
                           require the redemption thereof by the Borrower (in
                           each case after giving effect to any applicable cure
                           period).

                  Section 8.2 Remedies. (a) Upon the happening of any Event of
Default specified in the preceding Section (other than Subsections (g) or (h)
thereof), (i) all obligations, if any, of the Banks to make Advances to the
Borrower or issue letters of credit at the request of the Borrower shall
immediately cease and terminate, and (ii) the Agent shall at the direction, or
may with the consent, of the Required Banks by written notice to the Borrower
declare the entire principal amount of all Indebtedness then outstanding
including interest accrued thereon to be immediately due and payable without
presentment, demand, protest, notice of protest or dishonor or other notice of
default of any kind, all of which are hereby expressly waived by the Borrower.

                  (b) Upon the happening of any Event of Default specified in
Subsections (g) or (h) of the preceding Section, (i) all obligations, if any, of
the Banks to make Advances to the Borrower or issue letters of credit at the
request of the Borrower shall immediately cease and terminate, and (ii) the
entire principal amount of all obligations then outstanding including interest
accrued thereon shall, without notice or action by the Agent and the Banks, be
immediately due and payable without presentment, demand, protest, notice of
protest or dishonor or other notice of default of any kind, all of which are
hereby expressly waived by the Borrower.

                  (c) In addition to the foregoing, the Agent may exercise any
of the rights and remedies established in the Collateral Documents or avail
itself of any other rights and remedies provided by applicable law, including
without limitation completing and sending the letters described in Subsection
3.1(a)(x). In the event the Agent sends such letters, the Agent agrees that it
shall request such purchasers of production to remit any proceeds net of lease
operating expenses and production taxes. However, the Agent may accept any gross
payments made despite such requests without liability thereunder.

                  (d) In furtherance of the foregoing, to the extent that any
standby letters of credit are outstanding upon the occurrence of any Event of
Default, the Agent may be written notice to the Borrower require the Borrower to
pay to the Agent immediately on such demand the full undisbursed amount of such
letters of credit to be held by the Agent as collateral for the

                                      -69-
<PAGE>
payment of such letters of credit. Such amount shall bear interest from demand
until paid at the Default Rate notwithstanding any interest rate provision to
the contrary in any letter of credit application or agreement between the
Borrower and the Issuing Bank, even if executed after this Agreement.

                  Section 8.3 Set-Off. Upon the occurrence of any Event of
Default, the Agent and the Banks shall have the right to set-off any funds of
the Borrower or any Company in the possession of the Agent or such Bank
(including without limitation funds in the accounts provided for in Article 5)
against any amounts then due by the Borrower to the Agent or such Bank pursuant
to the Agreement (but the Borrower acknowledges that the Agent may apply funds
in such accounts against any interest, fee or mandatory principal prepayment
amounts then due and payable by the Borrower even without the occurrence of an
Event of Default). The Borrower agrees that any holder of a participation in any
Note may exercise any and all rights of counter-claim, set-off, banker's lien
and other liens with respect to any and all monies owing by Borrower to such
holder as fully as if such holder of a participation were a holder of a note in
the amount of such participation.

                  Section 8.4 Marshaling. The Companies shall not in any time
hereafter assert any right under any law pertaining to marshaling (whether of
assets or liens) and the Borrower expressly agrees that the Agent may execute or
foreclose upon the Collateral Documents in such order and manner as the Agent,
in its sole discretion, deems appropriate.

                                    ARTICLE 9

                                    THE AGENT

                  Section 9.1  Appointment and Authorization. (a) Each Bank
irrevocably appoints and authorizes the Agent to receive all payments of
principal, interest, fees and other amounts payable by the Borrower under this
Agreement and to remit same that is payable to the Banks promptly to the Banks,
to disburse the Advances from the Banks, and to take such action and to exercise
such powers under this Agreement, the Notes, and the Collateral Documents as are
delegated to the Agent by the Banks from time to time. The Agent shall promptly
distribute to the Banks upon receipt all payments and prepayments of principal,
interest, fees (except for those fees which by their express terms are payable
on another basis) and other amounts paid by the Borrower under this Agreement
that are payable to the Banks, in proportion to the Banks' Commitments.
Similarly, the Banks shall be obligated to fund Advances in proportion to their
Commitments. If the Agent receives a payment in immediately available funds by
11:00 a.m. (Central Time), the Agent will make available to each Bank on the
same date, by wire transfer of immediately available funds, such Bank's ratable
share of such payment, and if such payment is received after 11:00 a.m. (Central
Time) or in other than immediately available funds, the Agent will make
available to each Bank its ratable share of such payment by wire transfer of
immediately available funds on the next succeeding Business Day (or in the case
of uncollected funds, as soon as practicable after collected). If the Agent
shall not have made a required distribution to the Banks as required

                                      -70-
<PAGE>
by the preceding sentence after receiving a payment for the account of such
Banks, the Agent shall pay to each such Bank, on demand, its ratable share of
such payment with interest thereon at the Federal Funds Rate (as defined in the
next sentence) for each day from the date such amount was required to be
disbursed by the Agent until the date repaid to such Bank. The Federal Funds
Rate shall mean, for any day, an interest rate per annum (expressed as a
decimal, rounded upwards, if necessary, to the next higher 1/100 of 1%) equal to
the weighted average of the rates on overnight federal funds transactions with
members of the Federal Reserve System arranged by federal funds brokers on such
day, as published for such day (or, if such day is not a Business Day, for the
immediately preceding Business Day) by the Federal Reserve Bank of New York, or,
if such rate is not so published for any day which is a Business Day, the
average of the quotations at approximately 10:00 a.m. (Central Time) on such day
on such transactions received by the Agent from three federal funds brokers of
recognized standing selected by the Agent.

                  (b) The Agent or the Issuing Bank may resign at any time by
written notice to the Banks and the Borrower. The Agent or the Issuing Bank may
be removed at any time with or without cause by the Required Banks. The
successor Agent or successor Issuing Bank shall be selected by the Required
Banks from among the remaining Banks. If no successor Agent or successor Issuing
Bank has been so appointed by the Required Banks (and approved by the Borrower
as provided below) and has accepted such appointment within thirty (30) days
after such notice of resignation or removal, then the retiring Agent or retiring
Issuing Bank may, on behalf of the Banks and the Borrower, appoint a successor
Agent or successor Issuing Bank from among the remaining Banks. Any successor
Agent or successor Issuing Bank must be approved by the Borrower, which approval
will not be unreasonably withheld, delayed or conditioned. Upon the acceptance
of any appointment as Agent or Issuing Bank by a successor Agent or successor
Issuing Bank, such successor Agent or successor Issuing Bank shall thereupon
succeed to and become vested with all the rights, powers, privileges, and duties
of the retiring Agent or retiring Issuing Bank, and the retiring Agent or
retiring Issuing Bank shall be discharged from its duties and obligations under
this Agreement and the Collateral Documents, except that the retiring Issuing
Bank shall remain the Issuing Bank with respect to any letters of credit
outstanding hereunder on the effective date of its resignation or removal and
the provisions affecting the Issuing Bank with respect to such letters of credit
shall inure to the benefit of the retiring Issuing Bank until the termination of
all such letters of credit. After any retiring Agent's or retiring Issuing
Bank's resignation or removal hereunder as Agent or Issuing Bank, the provisions
of this Article 9 shall inure to its benefit as to any actions taken or omitted
to be taken while it was acting as Agent or Issuing Bank.

                  (c) Each Bank irrevocably appoints and authorizes the Agent to
hold this Agreement and the Collateral Documents (but not the Notes, which will
be held by the respective Banks), and to take such action and exercise such
powers under this Agreement, the Notes and the Collateral Documents as are
delegated to the Agent by the Banks from time to time. Any requests by the
Borrower for consent by the Banks or waiver or amendment of provisions of this

                                      -71-
<PAGE>
Agreement shall be delivered by the Borrower to the Agent, but favorable action
on such requests shall require the approval of the Required Banks or all of the
Banks, as the case may be.

                  Section 9.2 Agent's Reliance. Neither the Agent nor any of its
directors, officers, agents or employees shall be liable for any action taken or
omitted to be taken by it under or in connection with this Agreement, the Notes
or the Collateral Documents, except for its or their own gross negligence or
willful misconduct. Without limiting the generality of the foregoing, the Agent:
(i) may treat the payee of any of the Notes as the holder thereof until the
Agent receives written notice of the assignment or transfer thereof, signed by
such payee and in form satisfactory to the Agent; (ii) may consult with legal
counsel (including counsel for the Borrower), independent public accountants and
other experts selected by it and shall not be liable for any action taken or
omitted to be taken by it in good faith in accordance with the advice of such
counsel, accountants or experts; (iii) makes no warranty or representation to
any Bank and shall not be responsible to any Bank for any statements, warranties
or representations made in or in connection with this Agreement, the Notes and
the Collateral Documents; (iv) shall not have any duty to ascertain or to
inquire as to the performance or observance of any of the terms, covenants or
conditions of this Agreement, the Notes or the Collateral Documents (except
receipt of items expressly required to be delivered to the Agent hereunder), or
to inspect any property (including the books and records) of the Borrower; (v)
shall not be responsible to any Bank for the due execution, legality, validity,
enforce ability, genuineness, sufficiency or value of this Agreement, the Notes
or the Collateral Documents; and (vi) shall incur no liability under or in
respect to this Agreement, the Notes or the Collateral Documents by acting upon
any notice, consent, certificate or other instrument or writing (which may be by
facsimile, telegram, cable or telex) believed by it to be genuine and signed or
sent by the proper party or parties. The Agent shall not have a fiduciary
relationship in respect of any Bank by reason of this Agreement. The Agent shall
not have any implied duties to the Banks, or any obligation to the Banks to take
any action under this Agreement, the Notes, the Collateral Documents or the
Intercreditor Agreement except any actions specifically provided by such
documents to be taken by it.

                  Section 9.3 Acts by Agent after Default, etc. In the event
that the Agent shall have been notified in writing by any of the Borrower or the
Banks of any Event of Default (or in the event that the officer of the Agent
responsible for the Borrower' account obtains actual knowledge of an Event of
Default), the Agent (i) shall immediately notify the Banks; (ii) shall take such
action and assert such rights under this Agreement as it is expressly required
to do pursuant to the terms of this Agreement with the consent of or direction
by the Required Banks; (iii) may take such other actions and assert such other
rights as it deems advisable, in its discretion, for the protection of the
interests of the Banks pursuant to applicable laws with the consent of the
Required Banks; and (iv) shall inform all the Banks of the taking of action or
assertion of rights pursuant to this Section. Each Bank agrees with the Agent
and the other Banks that the decisions and determinations of the Required Banks
in enforcing this Agreement, the Notes and the Collateral Documents and guiding
the Agent in those matters shall be binding upon all the Banks, including
without limitation authorizing the Agent at the pro rata expense of all the
Banks (to the extent not reimbursed by the Borrower) to retain attorneys to seek
judgment

                                      -72-
<PAGE>
on this Agreement, the Notes and the Collateral Documents. Each Bank agrees with
the other Banks that it will not, without the consent of all the other Banks,
separately seek to institute any legal action with respect to the Loan. The
Agent shall in all cases be fully protected in acting, or in refraining from
acting, hereunder and under any Collateral Document or the Intercreditor
Agreement in accordance with written instructions signed by the Required Banks
(or, where required, all the Banks), and such instructions and any action taken
or failure to act pursuant thereto shall be binding on all of the Banks and on
all of the holders of Notes, provided, however, that the Agent shall not be
required to take any action which exposes the Agent to personal liability or
which is contrary to this Agreement or the Intercreditor Agreement or applicable
law.

                  Section 9.4 Bank Credit Decision. Each Bank acknowledges that
it has, independently and without reliance upon the Agent or any other Bank and
based on the financial statements referred to herein and such other documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Bank also acknowledges that it will,
independently and without reliance upon the Agent or any other Bank and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
this Agreement, the Notes and the Collateral Documents. No representation or
warranty, express or implied, is made by the Agent as to the accuracy or
completeness of information provided by the Borrower to the Banks, and the Agent
assumes no responsibility for its accuracy or completeness.

                  Section 9.5 Agent. The Agent shall have the same rights and
powers under this Agreement, the Notes and the Collateral Documents as any other
Bank and may exercise the same as though it were not the Agent; and the term
"Bank" or "Banks" shall, unless otherwise expressly indicated, include Agent in
its individual capacity. The Agent may accept deposits from, lend money to, act
as trustee under indentures of, and generally engage in any kind of business
with Borrower and its Subsidiaries as if the Agent were not the Agent and
without any duty to account therefor to the Banks. The Banks acknowledge that
Section 3.4 shall govern the relationship among the Secured Parties with respect
to the Secured Liabilities. The Banks acknowledge that the Intercreditor
Agreement shall govern the relationship between the Agent and the Banks and the
Subordinated Holders with respect to loans made by the Subordinated Holders to
the Borrower.

                  Section 9.6 Assignments and Participations. (a) No Bank may
assign to any other Person any portion of its interests, rights and obligations
under this Agreement (including, without limitation, any portion of its
Commitment or the Loan at the time owing to it and Note held by it) unless each
of the following conditions is or has been satisfied: (i) the Agent has given
its prior written consent (which consent will not be unreasonably withheld),
(ii) the Borrower has given its prior written consent (which consent will not be
unreasonably withheld, and shall not be required upon the occurrence and during
the continuance of an Event of Default), (iii) each such assignment is of a
constant, and not a varying, percentage of all the assigning Bank's rights and
obligations under this Agreement, (iv) the assignment is for a

                                      -73-
<PAGE>
Commitment of $5,000,000.00 or more, (v) the parties to such assignment have
executed and delivered to the Agent an Assignment and Acceptance, substantially
in the form of Exhibit B hereto (the "Assignment and Acceptance"), together with
any Note subject to such assignment, one or more signature pages to this
Agreement containing the signature of the assignee, one or more signature pages
to the Intercreditor Agreement (if in effect) containing the signature of the
assignee, and (following the Effective Date, as defined in the applicable
Assignment and Acceptance) payment by the assignee to the Agent for its own
account of an assignment administration fee in the amount of $3,500.00, (vi)
either the assignor or assignee shall have paid the Agent's reasonable costs and
expenses (including without limitation attorneys' fees and expenses) in
connection with the assignment, (vii) the Agent shall have delivered to the
Borrower a fully executed copy of such Assignment and Acceptance, and (viii) the
assignee is (A) a state or national commercial bank located in the United States
or (B) a bank organized under a jurisdiction other than the United States,
provided that such foreign bank has provided the Agent and the Borrower with
accurate and complete signed original forms prescribed by the Internal Revenue
Service certifying as to such Bank's status for purposes of determining
exemption from United States withholding taxes with respect to all payments to
be made to such Bank hereunder, and provided further that such foreign bank
shall not transfer its interests, rights and obligations under this Agreement to
any Affiliate of such foreign bank unless such Affiliate provides the Agent and
the Borrower with the aforesaid tax forms. Upon satisfaction of each of the
foregoing conditions and upon acceptance and notation by the Agent, from and
after the Effective Date specified in each Assignment and Acceptance, which
Effective Date shall be at least five (5) Business Days after the execution
thereof, (x) the assignee thereunder shall be a party hereto and, to the extent
provided in such Assignment and Acceptance, have the rights and obligations of a
Bank, and (y) the assigning Bank shall, to the extent provided in such
assignment, be released from its obligations under this Agreement.
Notwithstanding the foregoing, the restrictions contained above in this
Subsection 9.6(a) shall not apply to assignments to any Federal Reserve Bank,
and the conditions set forth in clauses (i) and (ii) above shall not apply to
assignments by any Bank to any Person which controls, is controlled by, or is
under common control with, or is otherwise substantially affiliated with that
Bank.

                  (b) Upon its receipt of an Assignment and Acceptance executed
by the parties to such assignment together with any Note subject to such
assignment and the written consent of the Agent and the Borrower to such
assignment, the Agent shall give prompt notice thereof to the Borrower and the
Banks. Within five (5) Business Days after receipt of such notice, the Borrower
at its own expense, shall execute and deliver to the Agent, in exchange for the
surrendered Note, a new Note to the order of such assignee(s) in an amount equal
to the amount assumed by such assignee(s) pursuant to such Assignment and
Acceptance and, if the assigning Bank has retained some portion of its
obligations hereunder, a new Note to the order of the assigning Bank in an
amount equal to the amount retained by it hereunder. Such new Note or Notes
shall be in an aggregate principal amount equal to the aggregate principal
amount of the surrendered Note, shall be dated the effective date of such
Assignment and Acceptance and shall otherwise be in the form of the assigned
Note. The surrendered Note shall be canceled and

                                      -74-
<PAGE>
returned to the Borrower. The Agent shall have the right to substitute a revised
Schedule 1 hereto to reflect the respective Commitments following each such
assignment.

                  (c) Each Bank, without the consent of the Agent or the other
Banks but with the prior written consent of the Borrower (which consent will not
be unreasonably withheld, and shall not be required during the existence and
continuance of an Event of Default), may sell participations to one or more
banks or other financial institutions (and such bank or banks or financial
institution or financial institutions shall be bound by the terms of this
Agreement, including without limitation this Section 9.6) in all or a portion of
the Loan (including its Commitment) under this Agreement; provided, that the
selling Bank shall retain the sole right and responsibility to enforce the
obligations of the Borrower relating to the Loan and that the only rights
granted to the participant pursuant to such participation arrangements with
respect to waivers, amendments or modifications of this Agreement shall be the
right to approve waivers, amendments, or modifications which require the consent
of all of the Banks as provided in Section 10.4 hereof. Notwithstanding the
foregoing, the Borrower's consent shall not be required for any participation
granted to any Federal Reserve Bank.

                  Section 9.7 Indemnification of the Agent and Issuing Bank. The
Banks ratably (computed by reference to each Bank's respective Commitment) shall
indemnify the Agent, its respective Affiliates, the Issuing Bank, its respective
Affiliates, and the respective shareholders, directors, officers, employees,
agents and counsel of the foregoing (each an "Agent Indemnitee") and hold each
Agent Indemnitee harmless from and against any and all claims (whether
groundless or otherwise), liabilities, losses, damages, costs and expenses of
any kind (including, without limitation, (i) the reasonable fees and
disbursements of counsel and (ii) any expenses for which the Agent has not been
reimbursed by the Borrower as required by this Agreement) which may be incurred
by such Agent Indemnitee arising out of or related to this Agreement or the
transactions contemplated hereby, or the Agent's actions taken hereunder
(including the Agent Indemnitee's own negligence); provided, that no Agent
Indemnitee shall have the right to be indemnified hereunder for such Agent
Indemnitee's own gross negligence or willful misconduct, as determined by a
court of competent jurisdiction, or to the extent that such claim relates to the
breach by such Agent Indemnitee of its obligations under this Agreement. The
foregoing shall survive the termination of this Agreement.

                                   ARTICLE 10

                                  MISCELLANEOUS

                  Section 10.1 Notices. Any notice or demand which by provision
of this Agreement or any Collateral Document referencing this provision, is
required or permitted to be given by one party to the other party hereunder
shall be given by (i) deposit, postage prepaid, in the mail, registered or
certified mail, or (ii) delivery to a recognized express courier service, or
(iii) delivery by hand, or (iv) by facsimile, in each case addressed (until
another address or addresses is given in writing by such party to the other
party) as follows:

                                      -75-
<PAGE>
                  If to Borrower:   GMX Resources Inc.
                                    9400 North Broadway, Suite 600
                                    Oklahoma City, Oklahoma 73114

                                    Attention: Chief Financial Officer

                                    Facsimile Number:  (405) 600-0600

                  If to Agent:      Capital One, National Association
                                    5718 Westheimer, Suite 600
                                    Houston, Texas 77057

                                    Attention:  David R. Reid

                                    Facsimile Number: (713) 435-5106

                  If to Bank:       At the addresses set forth on Schedule 1
                                    hereto.

All notices sent by facsimile transmission shall be deemed received by the
addressee upon the transmitter's receipt of acknowledgment of receipt from the
offices of such addressee (if before 5:00 p.m. on a Business Day; if later, then
on the next Business Day).

                  Section 10.2 Entire Agreement. This Agreement, the Notes and
the Collateral Documents together with the letter agreement referred to in
Subsection 2.5(d) set forth the entire agreement between the Borrower and the
Agent and the Banks with respect to the Indebtedness, and supersede all prior
written or oral understandings with respect thereto; provided, however, that all
written representations, warranties and certifications made by the Borrower to
the Agent and the Banks with respect to the Indebtedness and the security
therefor shall survive the execution of this Agreement. The Borrower is not
relying on any representation by the Agent or any Bank, and no representation
has been made, that the Agent or any Bank will, at the time of a Default or at
any other time, waive, negotiate, discuss, or take or refrain from taking any
action with respect to such Default.

                  Section 10.3 Renewal, Extension or Rearrangement. All
provisions of this Agreement relating to the Notes shall apply with equal force
and effect to each and all promissory notes or security instruments hereinafter
executed which in whole or in part represent a renewal, extension for any
period, increase or rearrangement of any part of the Notes.

                  Section 10.4 Amendment. No amendment or waiver of any
provision of this Agreement or consent to any departure therefrom by the
Borrower or the Banks shall be effective unless the same shall be in writing and
signed by the Borrower, the Agent and the Required

                                      -76-
<PAGE>
Banks; provided, that without the written consent of all of the Banks, no
amendment or waiver to this Agreement, any Note or any Collateral Document shall
(i) change the scheduled payment dates or maturity of the Loan, or (ii) change
the principal of or decrease the rate or change the time of payment of interest
or fees or decrease any premium payable with respect to any Note, or change the
currency in which the Loan is to be paid, or (iii) increase the Commitments, or
permit the Borrower to assign its rights hereunder, or add additional borrowers
hereunder, or (iv) release the Borrower, or affect the time, amount or
allocation of any required prepayments, or (v) effect the release of any
Collateral (other than as expressly permitted in the Collateral Documents or
this Agreement) or subordinate the rights of the Agent and the Banks with
respect to Collateral, or (vi) reduce the proportion of the Banks required to
agree on each determination of the Borrowing Base, or on which portion of the
Collateral is Shared Collateral under Section 3.4 or (vii) reduce the proportion
of the Banks or the Required Banks (as applicable) required with respect to any
consent, waiver, determination or change made hereunder, (viii) change the
definition of Required Banks or amend this Section 10.4, or (ix) change any
provisions hereof in a manner that would alter the pro rata sharing of payments
required by Section 2.9 and Section 2.10. No amendment of any provision of this
Agreement relating to the Agent shall be effective without the written consent
of the Agent, and no amendment of any provision of this Agreement relating to
the Issuing Bank issuing letters of credit shall be effective without the
written consent of such Issuing Bank. However, the Agent may waive or reduce
payment of its own fee required under Section 2.5(d) or clause (v) of Subsection
9.6(a) without obtaining the consent of any of the Banks. The Borrower, the
Agent and the Banks agree that no Bank will receive compensation from the
Borrower in order to obtain such Bank's consent to an amendment or waiver in a
greater proportion than that received by any other Bank for the same matter (but
this provision does not restrict fees to the agents for their services in
connection with this Agreement).

                  Section 10.5 Invalidity. In the event that any one or more of
the provisions contained in this Agreement, the Notes, or the Collateral
Documents shall, for any reason, be held invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect
any other provision of this Agreement, the Notes or the Collateral Documents.

                  Section 10.6 Survival of Agreements. All representations and
warranties of the Borrower herein, and all covenants and agreements herein not
fully performed before the effective date of this Agreement, shall survive such
date.

                  Section 10.7 Waivers. No course of dealing on the part of the
Agent, any Bank, its respective officers, employees, consultants or agents, nor
any failure or delay by the Agent or any Bank with respect to exercising any of
its rights, powers or privileges under this Agreement, the Notes or the
Collateral Documents, shall operate as a waiver thereof.

                  Section 10.8 Cumulative Rights. The rights and remedies of the
Agent and the Banks under this Agreement, the Notes and the Collateral Documents
shall be cumulative, and

                                      -77-
<PAGE>
the exercise or partial exercise of any such right or remedy shall not preclude
the exercise of any other right or remedy.

                  Section 10.9 Time of the Essence. Time shall be deemed of the
essence with respect to the performance of all of the terms, provisions and
conditions on the part of the Borrower, and the Agent and the Banks to be
performed hereunder.

                  Section 10.10 Successors and Assigns; Participants. All
covenants and agreements made by or on behalf of the Borrower in this Agreement,
the Notes and the Collateral Documents shall bind its successors and assigns and
shall inure to the benefit of the Agent and the Banks and their respective
successors and assigns. The Borrower may not assign its rights or obligations
under this Agreement.

                  Section 10.11 Relationship Between the Parties. The
relationship between the Agent and the Banks, on the one hand, and the Borrower
on the other, shall be solely that of lender and borrower, and such relationship
shall not, under any circumstances whatsoever, be construed to be a joint
venture, joint adventure, or partnership. Neither the Agent nor any Bank has a
fiduciary obligation to the Borrower with respect to this Agreement or the
transactions contemplated hereby.

                  Section 10.12 Limitation of Liability. This Agreement, the
Notes and the Collateral Documents are executed by officers of the Agent and the
Banks, and by acceptance of the Loan, the Borrower agrees that for the payment
of any claim or the performance of any obligations hereunder resulting from any
default by the Agent or any of the Banks, resort shall be had solely to the
assets and property of the Agent or such Bank, and no shareholder, officer,
employee or agent of the defaulting Agent or Bank shall be personally liable
therefor.

                  Section 10.13 Titles of Articles, Sections and Subsections.
All titles or headings to articles, sections, subsections or other divisions of
this Agreement or the exhibits hereto are only for the convenience of the
parties and shall not be construed to have any effect or meaning with respect to
the other content of such articles, sections, subsections or other divisions,
such other content being controlling as to the agreement between the parties
hereto.

                  Section 10.14 Singular and Plural. Words used herein in the
singular, where the context so permits, shall be deemed to include the plural
and vice versa. The definitions of words in the singular herein shall apply to
such words when used in the plural where the context so permits and vice versa.

                  SECTION 10.15 GOVERNING LAW. THIS AGREEMENT IS, AND THE NOTES
WILL BE, CONTRACTS MADE UNDER AND SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE UNITED STATES OF AMERICA (INCLUDING FEDERAL LAW THAT
PERMITS A BANK TO CHARGE INTEREST AT THE RATE ALLOWED BY THE LAWS OF THE STATE
WHERE SUCH BANK IS LOCATED) AND THE STATE OF TEXAS. Without limiting the intent
of the

                                      -78-
<PAGE>
parties set forth above, (a) Chapter 346 of the Texas Finance Code, as amended
(relating to revolving loans and revolving tri-party accounts (formerly Tex.
Rev. Civ. Stat. Ann. Art. 5069, Ch. 15)), shall not apply to this Agreement, the
Notes, or the transactions contemplated hereby and (b) to the extent that a Bank
may be subject to Texas law limiting the amount of interest payable for its
account, such Bank shall utilize the indicated (weekly) rate ceiling from time
to time in effect, provided that such Bank may also rely, to the extent
permitted by applicable laws including without limitation the laws of the United
States, on alternative maximum rates of interest under other laws applicable to
such Bank for calculation of the Maximum Rate if the application thereof results
in a greater Maximum Rate.

                  Section 10.16 Counterparts. This Agreement may be executed in
two or more counterparts, and it shall not be necessary that the signatures of
all parties hereto be contained on any one counterpart hereof; each counterpart
shall be deemed an original, but all of which together shall constitute one and
the same instrument.

                  Section 10.17 WAIVER OF JURY TRIAL; SUBMISSION TO
JURISDICTION. (a) THE BORROWER, THE AGENT AND THE BANKS HEREBY IRREVOCABLY WAIVE
TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH THE BORROWER, THE AGENT AND
THE BANKS MAY BE PARTIES, ARISING OUT OF OR IN ANY WAY PERTAINING TO (i) THE
NOTES, (ii) THIS AGREEMENT, (iii) THE COLLATERAL DOCUMENTS OR (iv) THE
COLLATERAL. IT IS AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF
TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS,
INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS AGREEMENT. THIS
WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY THE BORROWER, THE AGENT
AND THE BANKS, AND THE BORROWER, THE AGENT AND THE BANKS HEREBY REPRESENT THAT
NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE
THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT. THE
BORROWER, THE AGENT AND THE BANKS EACH FURTHER REPRESENT THAT IT HAS BEEN
REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY
INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, AND THAT IT HAD THE
OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

                  (b) THE BORROWER HEREBY IRREVOCABLY CONSENTS TO THE
NON-EXCLUSIVE JURISDICTION OF THE STATE COURTS OF LOUISIANA AND THE FEDERAL
EASTERN DISTRICT COURT IN LOUISIANA, AND AGREES THAT ANY ACTION OR PROCEEDING
ARISING OUT OF OR BROUGHT TO ENFORCE THE PROVISIONS OF THE NOTES, THIS AGREEMENT
AND/OR THE COLLATERAL DOCUMENTS MAY BE BROUGHT IN ANY COURT HAVING SUBJECT
MATTER JURISDICTION. THE BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTIONS THAT
IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION

                                      -79-
<PAGE>
OR PROCEEDING IN ANY SUCH COURT OR THAT ANY SUCH ACTION OR PROCEEDING WAS
BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME. THE
BORROWER AGREES THAT NOTHING HEREIN SHALL LIMIT THE AGENT'S AND THE BANKS' RIGHT
TO SUE IN ANY OTHER JURISDICTION.

                  (c) THE BORROWER HEREBY AGREES THAT SERVICE OF PROCESS IN ANY
SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY BY REGISTERED OR
CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL) POSTAGE PREPAID, TO
THE BORROWER AT ITS ADDRESS SET FORTH IN SECTION 10.1 OR AT SUCH OTHER ADDRESS
AS TO WHICH THE AGENT SHALL HAVE BEEN NOTIFIED PURSUANT THERETO. THE BORROWER
AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS
IN ANY OTHER MANNER PERMITTED BY LAW.

                  SECTION 10.18 AGREEMENT SUPERCEDES ALL PRIOR AGREEMENTS. THIS
AGREEMENT, TOGETHER WITH THE NOTES, THE COLLATERAL DOCUMENTS, AND ANY OTHER
WRITTEN INSTRUMENTS EXECUTED PURSUANT TO THIS AGREEMENT REPRESENT, COLLECTIVELY,
THE FINAL AGREEMENT BETWEEN THE PARTIES HERETO WITH RESPECT TO THE SUBJECT
HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES AND SHALL SUPERSEDE ANY PRIOR
AGREEMENT BETWEEN THE PARTIES HEREOF, WHETHER WRITTEN OR ORAL, RELATING TO THE
SUBJECT HEREOF.

                  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

                  Section 10.19 Imaging. The Borrower understands and agrees
that the Agent's or a Bank's document retention policy may involve the imaging
of executed loan documents and the destruction of the paper originals, and the
Borrower waives any right that it may have to claim that the imaged copies of
this Agreement and the Collateral Documents are not originals in any court
proceedings pertaining thereto.

                  Section 10.20 Patriot Act. The Agent and the Banks each hereby
notifies the Borrower that pursuant to the requirements of the Patriot Act, it
is required to obtain, verify and record information that identifies the
Borrower and the other Companies, which information includes the name and
address of the Borrower and other information that will allow the Agent and the
Banks each to identify the Borrower in accordance with the Patriot Act.

                                      -80-
<PAGE>
                                   ARTICLE 11

                                     RENEWAL

                  Section 11.1 No Novation. The Borrower confirms that this
Agreement has been given in renewal and extension of the Indebtedness to the
Banks and the Issuing Bank under the Prior Loan Agreement described in the
Preliminary Statement to this Agreement, and that nothing in this Agreement
shall constitute the satisfaction or extinguishment of the amount owed
thereunder, nor shall it be a novation of the amount owed thereunder.

                  Section 11.2 No Defenses. The Borrower represents and warrants
that there is no defense, offset, compensation, counterclaim or reconventional
demand with respect to amounts due under, or performance of the terms of, the
prior Note or the Prior Loan Agreement; and to the extent any such defense,
offset, compensation, counterclaim or reconventional demand or other causes of
action might exist, known or unknown, such items are hereby waived by the
Borrower.

                  Section 11.3 Transition. Until the conditions precedent in
Section 7.1 have been met, the terms of the Prior Loan Agreement shall remain in
full force and effect, and the Borrower may borrow under the terms established
thereunder (but only until and no later than June 30, 2006), so long as all of
the conditions and requirements otherwise established in this Agreement are met.
The Borrower, the Agent and the Banks acknowledge that certain provisions of the
Prior Loan Agreement shall remain pertinent for a time after the effectiveness
of this Agreement, such as the Percentage Outstanding under the Prior Loan
Agreement being used for the determinations of the initial Applicable LIBO Rate
Margin and Applicable Prime Rate Margin, the fee payable under Subsection 2.5(a)
to the Initial Bank, and pertaining to letters of credit issued under the Prior
Loan Agreement which remain outstanding on and after the Closing Date.

                                      -81-
<PAGE>
                  IN WITNESS WHEREOF, the parties hereto have caused this
instrument to be duly executed as of the date first above written.

                  SECTIONS 2.8, 5.13 AND 5.14 CONTAIN AN INDEMNITY.

BORROWER:                         GMX RESOURCES INC.

                                  By: /s/ Ken L. Kenworthy, Sr.
                                     ------------------------------------
                                      Name:  Ken L. Kenworthy, Sr.
                                      Title: Executive Vice President and CFO

AGENT:                            CAPITAL ONE, NATIONAL ASSOCIATION

                                  By: /s/ Brian Kerrigan
                                     ------------------------------------
                                      Name:  Brian Kerrigan
                                      Title: Vice President

BANKS:                            CAPITAL ONE, NATIONAL ASSOCIATION,
                                      as a Bank

                                  By: /s/ Brian Kerrigan
                                     ------------------------------------
                                      Name:  Brian Kerrigan
                                      Title: Vice President

                                      UNION BANK OF CALIFORNIA, N.A.

                                  By: /s/ Jarrod Bourgeois
                                     ------------------------------------
                                      Name:  Jarrod Bourgeois
                                      Title: Vice President

                                      -82-
<PAGE>
                                LIST OF SCHEDULE

1.       Commitments of the Banks

                                 LIST OF ADDENDA

1.       LIBO Rate Provisions

2.       Subordination Terms

                                LIST OF EXHIBITS

A.       Form of  Note

B.       Form of Assignment and Acceptance

<PAGE>
                                   SCHEDULE 1

                             Effective June 7, 2006

                            Commitments of the Banks

Name and Address of Bank                                      Commitment of Bank

1.       Capital One, National Association                    $ 60,000,000.00
         5718 Westheimer, Suite 600
         Houston, Texas  77057

         Attention:  Mr. David R. Reid

         Facsimile Number: (713) 435-5106
         Telephone Number: (713) 435-5332

2.       Union Bank of California, N.A.                       $ 40,000,000.00
         500 North Akard, Suite 4200
         Dallas, Texas  75201
         Attention:  Mr. Jarrod Bourgeois

         Facsimile Number: (214) 922-4209
         Telephone Number: (214) 922-4200

<PAGE>
                                   ADDENDUM I

                              LIBO RATE PROVISIONS

         1. The Agent shall determine the interest rate applicable to LIBO Rate
Advances, and its determination shall be conclusive in the absence of manifest
error. The Agent shall endeavor to notify the Borrower prior to the date on
which an interest payment is due, provided that the failure of the Agent to
provide such notice shall not affect the Borrower's obligation to pay interest
on such date.

         2. If any applicable law or regulation, or the action of any applicable
regulatory requirement increases the reserves or capital required to be
maintained by any Bank or the Agent with respect to the Loan (including unfunded
commitments and obligations on letter of credit), such Bank or the Agent shall
promptly deliver a certificate to the Borrower specifying the additional amount
as will compensate such Bank or the Agent for the additional costs, which
certificate shall be conclusive in the absence of manifest error. The Borrower
shall pay the amount specified in such certificate promptly upon receipt.

         3. If the Agent gives notice to the Borrower that no LIBO bid rate is
quoted to the Agent (or otherwise that adequate and reasonable methods do not
exist for ascertaining the LIBO Rate) for the applicable Interest Period or in
the applicable amounts (which notice shall be conclusive and binding on the
Borrower and the Banks absent manifest error), then (A) the obligation of the
Agent and the Banks to make a LIBO Rate Advance and the ability of the Borrower
to select the LIBO Rate for an Advance shall be suspended, and (B) the Borrower
shall either prepay all LIBO Rate Advances for which an interest rate is to be
determined on such date or the Loan shall thereafter bear interest at the Prime
Rate.

         4. If any applicable domestic or foreign law, treaty, rule or
regulation (whether now in effect or hereinafter enacted or promulgated,
including Regulation D of the Board of Governors of the Federal Reserve System)
or any interpretation or administration thereof by any governmental authority
charged with the interpretation or administration thereof (whether or not having
the force of law):

                  (i) changes the basis of taxation of payments to any Bank or
         the Agent or any principal, interest, or other amounts attributable to
         any LIBO Rate Advance (other than taxes imposed on the overall net
         income of such Bank or the Agent);

                  (ii) changes, imposes, modifies, applies or deems applicable
         any reserve, special deposit or similar requirements in respect of any
         such LIBO Rate Advance (excluding those for which such Bank or the
         Agent is fully compensated pursuant to adjustments made in the
         definition of LIBO Rate) or against assets of, deposits with or for the
         account of, or credit extended by, any Bank or the Agent; or
<PAGE>
                                                                      ADDENDUM I
                                                                        PAGE -2-

                  (iii) imposes on any Bank or the Agent or the interbank
         eurocurrency deposit and transfer market any other condition or
         requirement affecting any such LIBO Rate Advance,

and the result of any of the foregoing is to increase the cost to such Bank or
the Agent of funding or maintaining any such LIBO Rate Advance (other than costs
for which such Bank or the Agent is fully compensated pursuant to adjustments
made in the definition of LIBO Rate) or to reduce the amount of any sum
receivable by such Bank or the Agent in respect of any such LIBO Rate advance by
an amount deemed by such Bank or the Agent to be material, then such Bank or the
Agent shall promptly notify the Borrower in writing of the happening of such
event and (1) Borrower shall upon demand pay to such Bank or the Agent such
additional amount or amounts as will compensate such Bank or the Agent for such
additional cost or reduction and (2) Borrower may elect, by giving to the Agent
not less than three Business Days' notice, to change the interest rate
applicable to such Advance, and any other portion of the Loan bearing interest
at the LIBO Rate, to the Prime Rate.

         5. Notwithstanding any other provision hereof, if any change in
applicable laws, treaties, rules or regulations or in the interpretation or
administration thereof of or in any jurisdiction whatsoever, domestic or
foreign, shall make it unlawful or impracticable for any Bank to maintain
Advances bearing interest at the LIBO Rate, or shall materially restrict the
authority of any Bank to purchase, sell or take certificates of deposit or
offshore deposits of dollars, then, upon notice by such Bank to Borrower and the
Agent, such Bank's portion of all LIBO Rate Advances which are then outstanding
and which cannot lawfully or practicably be maintained shall immediately cease
to bear interest at the LIBO Rate and shall commence to bear interest at the
Prime Rate. The Borrower agrees to indemnify each Bank and hold it harmless
against all costs, expenses, claims, penalties, liabilities and damages which
may result from any such change in law, treaty, rule, regulation, interpretation
or administration. The Borrower hereby agrees promptly to pay the Agent for the
account of such Bank, upon demand by such Bank, any additional amounts necessary
to compensate such Bank for any costs incurred by such Bank in making any
conversion in accordance with this Paragraph, including any interest or fees
payable by such Bank to lenders of funds obtained by it in order to make or
maintain hereunder its portion of the Loan accruing interest based on the LIBO
Rate.

         6. The Borrower will indemnify the Agent and each Bank against, and
reimburse the Agent and each Bank on demand for, any loss or expense incurred or
sustained by the Agent and each Bank (including without limitation, any loss or
expense incurred by reason of the liquidation or reemployment of deposits or
other funds acquired by the Agent and each Bank to fund or maintain LIBO Rate
Advances) as a result of (i) any payment or prepayment (whether authorized or
required hereunder or otherwise) of all or a portion of any LIBO Rate Advance on
a day other than the day on which the applicable Interest Period ends, (ii) any
payment or prepayment, whether required hereunder or otherwise, of the LIBO Rate
Advances made after the delivery, but before the effective date, of an election
to have the LIBO Rate apply to LIBO
<PAGE>
                                                                      ADDENDUM I
                                                                        PAGE -3-

Rate Advance, if such payment or prepayment prevents such election from becoming
fully effective, or (iii) the failure of any LIBO Rate Advance to be made by the
Agent and each Bank or of any such election to become effective due to any
condition precedent to a LIBO Rate Advance not being satisfied or due to any
other action or inaction of Borrower. For purposes of this section, funding
losses arising by reason of liquidation or reemployment of deposits or other
funds acquired by the Agent or any Bank to fund or maintain LIBO Rate Advances
shall be calculated as the remainder obtained by subtracting: (1) the yield
(reflecting both stated interest rate and discount, if any) to maturity of
obligations of the United States Treasury as determined by the Agent or such
Bank in an amount equal or comparable to such advance for the period of time
commencing on the date of the payment, prepayment or change of rate as provided
above and ending on the last day of the subject Interest Period, from (2) the
LIBO Rate of the subject Interest Period, times the number of days from the date
of payment, prepayment or change of rate to the last day of the subject Interest
Period, divided by 360. Any payment due under this paragraph will be paid to the
Agent or such Bank within five days after demand therefor by the Agent or such
Bank.

         7.       The Borrower covenants and agrees that:

                  (i) The Borrower will pay, within five days after notice
         thereof from Agent (on behalf of itself or any Bank) and on an
         after-tax basis, all present and future income, stamp and other taxes,
         levies, costs and charges whatsoever imposed, assessed, levied or
         collected on or in respect of any LIBO Rate Advance whether or not
         legally or correctly imposed, assessed, levied or collected (excluding
         taxes, levies, costs or charges imposed on or measured by the overall
         net income of the Agent or any Bank) (all such non-excluded taxes,
         levies, costs and charges being collectively called "Reimbursable
         Taxes"). Promptly after the date on which payment of any Reimbursable
         Taxes is due pursuant to applicable law, the Borrower will, at the
         request of the Agent, furnish to the Agent evidence in form and
         substance satisfactory to the Agent that Borrower has met its
         obligation under this paragraph.

                  (ii) The Borrower will indemnify the Agent and each Bank
         against, and reimburse the Agent and each Bank on demand for, any
         Reimbursable Taxes paid by the Agent or such Bank and any loss,
         liability, claim or expense, including interest, penalties and legal
         fees, that the Agent and each Bank may incur at any time arising out of
         or in connection with the failure of Borrower to make any payment of
         Reimbursable Taxes when due, unless such failure is due to Agent or
         such Bank's failure to give notice to Borrower of Borrower's obligation
         to pay such Reimbursable Taxes at least five days prior to the date
         when they are due. Any payment due under this subsection will be paid
         to the Agent or such Bank within five days after demand therefor by the
         Agent or such Bank.
<PAGE>
                                                                      ADDENDUM I
                                                                        PAGE -4-

                  (iii) All payments on account of the principal of, and
         interest on, LIBO Rate Advances and all other amounts payable by
         Borrower to the Agent and the Banks hereunder shall be made free and
         clear of and without reduction by reason of any Reimbursable Taxes.

                  (iv) If Borrower is ever required to pay any Reimbursable
         Taxes with respect to any LIBO Rate Advance, Borrower may elect, by
         giving to the Agent not less than three (3) Business Days' notice, to
         change the interest rate applicable to any such advance from the LIBO
         Rate to the Prime Rate, but such election shall not diminish Borrower's
         obligation to pay all Reimbursable Taxes therefore imposed, assessed,
         levied or collected.
<PAGE>
                                   ADDENDUM II

                          APPROVED SUBORDINATION TERMS
                          ----------------------------

         Reference is made to the Amended and Restated Loan Agreement, dated as
of June 7, 2006, by and among GMX Resources Inc., as Borrower, the Banks party
thereto, and Capital One, National Association, as Agent (the "Loan Agreement").
Capitalized terms used herein and not defined herein shall have the meanings
assigned to such terms in the Loan Agreement. In the event that the
subordination terms are in connection with a guaranty, the term "Guarantor"
shall be substituted for the term "Borrower".

         Following are the subordination terms to be applicable to Indebtedness
or Guarantees permitted pursuant to Section 6.1(h) of the Loan Agreement.

                                   DEFINITIONS
                                   -----------

         "Insolvency Event" means any event with respect to the Borrower
described in Sections 8.1(g), 8.1(h) or 8.1(i) of the Loan Agreement.

         "Junior Creditors" means any holder of, or obligee under or in respect
of, any Junior Obligations.

         "Junior Documents" means (i) [IDENTIFY THE DOCUMENTS CREATING THE
SUBORDINATED INDEBTEDNESS OR SUBORDINATED GUARANTEES], (ii) each agreement,
instrument or other document executed or delivered in connection with the
refinancing of any Junior Obligations, and (iii) each agreement, instrument or
other document executed or delivered in connection with any of the foregoing.

         "Junior Liens" means any Liens securing all or any portion of the
Junior Obligations.

         "Lien" means any interest in property securing an obligation owed to,
or a claim by, a Person other than the owner of the property, whether such
interest is based on jurisprudence, statute or contract, and including without
limitation the lien or security interest arising from a mortgage, pledge,
security agreement, production payment, conditional sale, bond for deed or trust
receipt or a lease, consignment or bailment for security purposes. For the
purposes of this definition, the Borrower shall be deemed to be the owner of any
property which it has accrued or holds subject to a conditional sale agreement,
financing lease or other arrangement pursuant to which title to the property has
been retained by or vested in some other Person for security purposes.

         "Junior Obligations" means all of the obligations and liabilities of
the Borrower under the Junior Documents, whether fixed, contingent, now existing
or hereafter arising, created, assumed or incurred, and including any obligation
or liability in respect of any breach of any representation or warranty and in
respect of any rights of repurchase, redemption or rescission.
<PAGE>
                                                                     ADDENDUM II
                                                                        PAGE -2-

         "Remedies" means, with respect to any debt (including without
limitation the Junior Obligations) (i) the acceleration of the maturity of any
such debt, (ii) the exercise of any put right or other similar right to require
the Borrower or any Subsidiary to repurchase any such debt prior to the stated
maturity thereof, (iii) the collection or commencement of proceedings against
the Borrower, any Subsidiary or any other Person obligated on such debt or any
of their respective property, to enforce or collect any such debt, (iv) taking
possession of or foreclosing upon (whether by judicial proceedings or otherwise)
any Liens, or causing a marshaling of any property of the Borrower or any
Subsidiary, (v) the making of a demand and respect of any guaranty given by any
Person of such debt, (vi) exercising any other remedies with respect to such
debt or any claim with respect thereto, or (vii) the taking of any action
against the Borrower, any Subsidiary or any other Person obligated on or for
such debt, or any of their respective assets, pertaining to the terms of the
agreements governing such debt (including documents regarding the Junior Liens).

         "Senior Agent" means the Agent.

         "Senior Creditors" means any holder of, or obligee under or in respect
of, any Senior Obligations.

         "Senior Documents" means (i) the Loan Agreement, (ii) each agreement,
instrument or other document executed or delivered in connection with
refinancing of Senior Obligations, (iii) any Secured Hedge Agreement, and (iv)
each agreement, instrument or other document executed or delivered in connection
with any of the foregoing.

         "Senior Liens" means any Liens securing all or any portion of the
Senior Obligations.

         "Senior Obligations" means all of the obligations and liabilities of
the Borrower under the Senior Documents, whether fixed, contingent, now existing
or hereafter arising, created, assumed or incurred, and including (i) any
obligation or liability in respect of any breach of any representation or
warranty and in respect of any rights of redemption or rescission and (ii) all
post-petition interest and make-whole premiums, whether or not allowed as a
secured claim or as an unsecured claim in any proceeding, including any
proceeding arising under Title 11 of the United States Code, arising in
connection with an Insolvency Event.

                               PAYMENT PROVISIONS
                               ------------------

                  1. Payment Defaults. No payment of Junior Obligations may be
made by the Borrower in the event that the principal of, or interest on, or any
other amount payable in respect of, the Senior Obligations is not paid when due,
whether at maturity or at a date fixed for prepayment or by declaration or
otherwise (a "Payment Default"), unless and until such Payment Default has been
cured or waived or otherwise has ceased to exist.
<PAGE>
                                                                     ADDENDUM II
                                                                        PAGE -3-

                  2. Non-Payment Defaults. No payment of Junior Obligations may
be made by the Borrower in the event that an Event of Default other than a
Payment Default (a "Non-Payment Default") has occurred, and has not been cured
or waived, provided that the Senior Agent delivers written notice (a "Blockage
Notice") to the Borrower and to the Junior Creditors directing the Borrower not
to make payment of the Junior Obligations. Notwithstanding the foregoing, unless
(i) the Senior Obligations have been declared due and payable in their entirety
within ninety (90) days after the Blockage Notice is given as set forth above
(the "Blockage Period") and (ii) such declaration has not been rescinded or
waived upon expiration of the Blockage Period, the Borrower will be required to
pay to the Junior Creditors all sums not paid to the Junior Creditors during the
Blockage Period due to the prohibitions of this paragraph (and upon the making
of such payments any acceleration of the Borrower's obligations with regard to
the Junior Obligations which was declared during the Blockage Period because of
the Borrower's failure to make payments due to the prohibitions in this
paragraph will be of no further force or effect) and to resume all other
payments due under the Junior Obligations as and when they are due. Not more
than one Blockage Notice may be given in any consecutive 365 day period,
irrespective of the number of defaults with respect to Senior Obligations that
may occur during such period. In no event may the number of days during which
any Blockage Period is, or Blockage Periods are, in effect exceed 180 days in
the aggregate during any consecutive 365 day period.

                  3. Insolvency Events. Upon any distribution of assets of the
Borrower as a result of any dissolution, winding up, liquidation or
reorganization (including as a result of an Insolvency Event), all Senior
Obligations must be paid in full in cash before any payment is made on account
of the Junior Obligations.

                  4. Turn-Over. If the Junior Creditors receive any payments in
respect of the Junior Obligations which they are not entitled to receive
pursuant to the applicable subordination terms, such payment must be delivered
to the Senior Agent on behalf of the holders of the Senior Obligations as their
interests may appear.

                                 LIEN PROVISIONS
                                 ---------------

                  5. Priority. The Senior Liens shall be senior and superior to
the Junior Liens. The foregoing priority shall remain irrespective of
modifications, amendments, renewals or extensions of the Senior Obligations, and
irrespective of any advances made by either party to preserve the collateral or
the priority of their Liens in the Collateral.

                  6. No Contest. The Junior Creditors shall not contest the
validity, perfection, priority or enforceability of any Lien granted to the
Senior Creditors by the Borrower or its affiliates. The Junior Creditors shall
not contest Remedies actions taken by the Senior Creditors.

                  7. Standstill. The Junior Creditors shall not exercise any
Remedies in respect of the Junior Liens until ninety (90) days after the first
to occur of (i) the date the Agent receives
<PAGE>
                                                                     ADDENDUM II
                                                                        PAGE -4-

notice from the Junior Creditors of the occurrence of an Event of Default under
the Junior Obligations or (ii) the Borrower files or consents by answer or
otherwise to the filing against it of a petition for relief or reorganization or
other partition in bankruptcy.

                  8. Release of Collateral. The Junior Creditors shall agree and
consent in advance to the automatic release of the Junior Liens on any
collateral upon a sale thereof in compliance with the asset sale covenant in the
Senior Documents.

                                OTHER PROVISIONS
                                ----------------

                  9. Maturity. The maturity of the Junior Obligations shall be
at least one year after the Maturity Date.

                  10. Maximum Amount. The maximum aggregate principal amount of
the Junior Obligations outstanding at any time and from time to time, when added
to the total amount of Qualified Redeemable Preferred Equity issued by the
Borrower, shall not exceed twenty five million ($25,000,000.00) dollars.

                  11. No Cross Default. No Default under the Senior Obligations
shall result in a default under the Junior Obligations, except for a Payment
Default on the Maturity Date. Cross acceleration is permitted.

                  12. Filing Claims. The Senior Agent shall be irrevocably
authorized to file any required proof of claim if the Junior Creditors fail to
do so in a timely manner.

                  13. Bankruptcy. The Junior Creditors shall agree and give
advance consent with respect to any of the following actions in any bankruptcy
proceedings of the Borrower: (i) any use of cash collateral approved by the
Senior Creditors, (ii) any court-approved asset sale that is also approved by
the Senior Creditors, so long as the Junior Liens attach to the proceeds of the
sale in accordance with the Lien priorities agreed to in the Intercreditor
Agreement, and (iii) debtor-in-possession financings under which the Liens
securing such debtor-in-possession financing rank prior or equal to the Liens
securing the Senior Obligations.

                  14. Amendments. No amendment to the subordination provisions
is permitted without the consent of the Senior Agent.
<PAGE>
                                    EXHIBIT A
                                    ---------

                                  FORM OF NOTE

                               LINE OF CREDIT NOTE

Borrower:                                               Bank:
--------                                                ----

GMX Resources Inc.                                      ________________________
9400 North Broadway, Suite 600                          ________________________
Oklahoma City, Oklahoma  73114                          ________________________
                                                        ________________________

________________________________________________________________________________

Principal Amount:          Maturity Date of Note:             Date of Note
U.S. $____________             July 29, 2008                  June __, 2006

PROMISE TO PAY. GMX RESOURCES INC. ("Borrower"), an Oklahoma corporation,
promises to pay to the order of ("Bank") at the main office in New Orleans,
Louisiana (313 Carondelet Street) of Capital One, National Association
("Agent"), in lawful money of the United States of America, the sum of and
00/100 dollars (U.S. $ ), or such other or lesser amount as from time to time
equals the aggregate unpaid principal balance of loan advances made to Borrower
by Bank on a revolving line of credit basis as provided below, together with
simple interest assessed on the variable rate(s) basis provided below, with
interest being assessed on the unpaid principal balance of this Note as
outstanding from time to time, commencing on the date hereof and continuing
until this Note is paid in full. Interest on Base Rate Advances under this Note
shall be calculated on the basis of a 365 (or in a leap year 366) day year and
the actual number of days elapsed, and on LIBO Rate Advances under this Note
shall be calculated on a 365/360 simple interest basis, that is, by applying the
ratio of the annual interest rate over a year of 360 days, times the outstanding
principal balance, times the actual number of days the principal balance is
outstanding.

LOAN AGREEMENT. This Note is a Note referred to in and executed pursuant to that
certain amended and restated loan agreement dated as of June 7, 2006 among
Borrower, Agent and the banks from time to time party thereto (as amended,
renewed or restated from time to time, the "Loan Agreement"), and is entitled to
the benefits thereof. Unless otherwise defined herein, each capitalized term
used herein shall have the same meaning set forth in the Loan Agreement.
Reference is made to the Loan Agreement for provisions for the acceleration of
the maturity
<PAGE>
                                                                       EXHIBIT A
                                                                        PAGE -2-

hereof on the occurrence of certain events specified therein, for mandatory
prepayments required of the Borrower in certain circumstances, and for all other
pertinent provisions.

LINE OF CREDIT. This Note evidences revolving line of credit advances that may
be made from time to time to Borrower under the Loan Agreement (including loan
advances arising from draws on standby letters of credit issued thereunder).
Borrower agrees to be liable for all sums either (a) advanced in accordance with
the instructions of an authorized person as specified in the Loan Agreement or
(b) credited pursuant to the Loan Agreement to any of Borrower's deposit
accounts with Agent. The unpaid principal balance owing on this Note at any time
may be evidenced by endorsements on this Note or by Agent's or Bank's internal
records, including daily computer print-outs. Advances shall only be made in
accordance with the terms and conditions of the Loan Agreement.

PAYMENT. Borrower will pay interest on Base Rate Advances at the Base Rate
monthly in arrears on the last day of each successive calendar month, but in no
event greater than the Maximum Rate (as such term is defined in the Loan
Agreement). Borrower will pay interest on LIBO Rate Advances at the applicable
LIBO Rate on the last day of each applicable LIBO Rate Interest Period for each
LIBO Rate Advance, but in no event greater than the Maximum Rate. Borrower will
pay the balance of all outstanding principal on this Note, together with all
accrued but unpaid interest, at the Maturity Date. Borrower will pay Bank at
Agent's address shown above or at such other place as Bank may designate in
writing. All payments and prepayments made by Borrower hereunder shall be made
to Bank, in immediately available funds, before 11:00 a.m. (Central Time) on the
day that such payment is required, or otherwise is, to be made. Any payment
received and accepted by Bank after such time shall be considered for all
purposes (including the calculation of interest to the extent permitted by law)
as having been made on the next following Business Day. Whenever any payment to
be made hereunder falls on a day other than a Business Day, then unless
otherwise provided in the Loan Agreement such payment shall be made on the next
succeeding Business Day (without penalty or default), and such extension of time
shall in each case be included in the calculation of interest. Unless otherwise
agreed or required by applicable law, payments will be applied first to accrued
unpaid interest, then to principal, and any remaining amount to any unpaid
collection costs and late charges.

VARIABLE INTEREST RATES. This Note bears interest on and after the date hereof
to and including the Maturity Date at the variable rate(s) per annum equal to
the Base Rate or LIBO Rate, as selected by Borrower in accordance with the Loan
Agreement, but in no event greater than the Maximum Rate. The interest rate on
this Note is subject to change from time to time based on changes in the Prime
Rate and the LIBO Rate. If the index rate used in determining the Prime Rate
becomes unavailable during the term of this Note, Agent may designate a
substitute index after notice to Borrower. Agent will tell Borrower the Prime
Rate upon Borrower's request. Borrower understands that Bank may make loans
based on other rates as well. The interest rate change will not occur more than
once each day. Under no circumstances will the interest rate on this Note be
more than the Maximum Rate allowed by applicable law. The
<PAGE>
                                                                       EXHIBIT A
                                                                        PAGE -3-

unpaid principal balance of this Note shall bear interest from and after an
Event of Default or the Maturity Date until paid at the Default Rate from time
to time in effect.

PREPAYMENT. Borrower may prepay this Note in full or in part at any time by
paying the then unpaid principal balance of this Note, plus accrued simple
interest and any unpaid late charges through date of prepayment, subject to
restrictions regarding permitted timing and advance notice set forth in the Loan
Agreement, but without penalty or premium. Borrower may be required to prepay
this Note from time to time in accordance with the Loan Agreement. If Borrower
prepays this Note in full, or if Bank accelerates payment, Borrower understands
that, unless otherwise required by law, any prepaid fees or charges will not be
subject to rebate and will be earned by Bank at the time this Note is signed.

LATE CHARGE. If Borrower fails to pay any payment under this Note in full within
ten (10) days of when due, Borrower agrees to pay Bank a late payment fee in an
amount equal to 5.000% of the delinquent interest due. Late charges will not be
assessed following declaration of default and acceleration of maturity of this
Note.

DEFAULT. If any Event of Default occurs, Agent and Bank shall have all the
rights and remedies (including acceleration of the Maturity Date of this Note)
available to them pursuant to the Loan Agreement or applicable law.

ATTORNEYS' FEES. If Bank refers this Note to an attorney for collection, or
files suit against Borrower to collect this Note, or if Borrower files for
bankruptcy or other relief from creditors, Borrower agrees to pay Agent's and
Bank's reasonable attorneys' fees.

DEPOSIT ACCOUNTS. As collateral security for repayment of this Note and all
renewals and extensions, as well as to secure any and all Indebtedness that
Borrower may now or in the future owe to Agent or any Bank in connection with
the Loan Agreement, Borrower hereby grants Agent for itself and the ratable
benefit of the Banks a continuing security interest in any and all funds that
Borrower may now and in the future have on deposit with Agent or in certificates
of deposit or other deposit accounts as to which Borrower is an account holder
(with the exception of IRA, pension, and other tax-deferred deposits).

COLLATERAL. This Note is secured by the Collateral and Collateral Documents as
provided in the Loan Agreement.

WAIVERS. Borrower and each guarantor of this Note hereby waive presentment for
payment, protest, notice of protest and notice of nonpayment, and all pleas of
division and discussion, and severally agree that their obligations and
liabilities to Bank hereunder shall be on a "solidary" or "joint and several"
basis. Borrower and each guarantor further severally agree that discharge or
release of any party who is or may be liable to Bank for the indebtedness
represented hereby, or the release of any collateral directly or indirectly
securing repayment hereof, shall not have the effect of releasing any other
party or parties, who shall remain liable to Bank, or of releasing any
<PAGE>
                                                                       EXHIBIT A
                                                                        PAGE -4-

other collateral that is not expressly released by Bank. Borrower and each
guarantor additionally agree that Bank's acceptance of payment other than in
accordance with the terms of this Note, or Bank's subsequent agreement to extend
or modify such repayment terms, or Bank's failure or delay in exercising any
rights or remedies granted to Bank, shall likewise not have the effect of
releasing Borrower or any other party or parties from their respective
obligations to Bank, or of releasing any collateral that directly or indirectly
secures repayment hereof. In addition, any failure or delay on the part of Bank
to exercise any of the rights and remedies granted to Bank shall not have the
effect of waiving any of Bank's rights and remedies. Any partial exercise of any
rights and/or remedies granted to Bank shall furthermore not be construed as a
waiver of any other rights and remedies; it being Borrower's intent and
agreement that Bank's rights and remedies shall be cumulative in nature. A
waiver or forbearance on the part of Bank as to one event of default shall not
be construed as a waiver or forbearance as to any other default. Borrower and
each guarantor of this Note further agrees that any late charges provided for
under this Note will not be charges for deferral of time for payment and will
not and are not intended to compensate Bank for a grace or cure period, and no
such deferral, grace or cure period has been or will be granted to Borrower in
return for the imposition of any late charge. Borrower recognizes that
Borrower's failure to make timely payment of amounts due under this Note will
result in damages to Bank, including but not limited to Bank's loss of the use
of amounts due, and Borrower agrees that any late charges imposed by Bank
hereunder will represent reasonable compensation to Bank for such damages.
Failure to pay in full any installment or payment timely when due under this
Note, whether or not a late charge is assessed, will remain and shall constitute
an event of default hereunder.

SUCCESSORS AND ASSIGNS LIABLE. Borrower's and each guarantor's obligations and
agreements under this Note shall be binding upon Borrower's and each guarantor's
respective successors, heirs, legatees, devisees, administrators, executors and
assigns. The rights and remedies granted to Bank under this Note shall inure to
the benefit of Bank's successors and assigns, as well as to any subsequent
holder or holders of this Note.

CAPTION HEADINGS. Caption headings of the sections of this Note are for
convenience purposes only and are not to be used to interpret or to define their
provisions. In this Note, whenever the context so requires, the singular
includes the plural and the plural also includes the singular.

WAIVER OF JURY TRIAL. BANK AND BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE THE RIGHT TO ANY JURY TRIAL IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM
BROUGHT BY EITHER BANK OR BORROWER AGAINST THE OTHER.

GOVERNING LAW. THIS NOTE IS A CONTRACT MADE UNDER AND SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE UNITED STATES OF AMERICA
(INCLUDING FEDERAL LAW THAT PERMITS
<PAGE>
                                                                       EXHIBIT A
                                                                        PAGE -5-

BANK TO CHARGE INTEREST AT THE RATE ALLOWED BY THE LAWS OF THE STATE WHERE BANK
IS LOCATED) AND THE STATE OF TEXAS. Without limiting the intent of the parties
set forth above, Chapter 346 of the Texas Finance Code, as amended (relating to
revolving loans and revolving tri-party accounts (formerly Tex. Rev. Civ. Stat.
Ann. Art. 5069, Ch. 15)), shall not apply to this Note, or the transactions
contemplated hereby.

AGREEMENT SUPERSEDES ALL PRIOR AGREEMENTS. THIS NOTE, AND THE LOAN AGREEMENT AND
THE COLLATERAL DOCUMENTS REPRESENT, COLLECTIVELY, THE FINAL AGREEMENT BETWEEN
THE PARTIES HERETO WITH RESPECT TO THE SUBJECT HEREOF AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES, AND SHALL SUPERSEDE ANY PRIOR AGREEMENT BETWEEN THE
PARTIES HEREOF, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT HEREOF.

THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

SEVERABILITY. If any provision of this Note is held to be invalid, illegal or
unenforceable by any court, that provision shall be deleted from this Note and
the balance of this Note shall be interpreted as if the deleted provision never
existed.

RENEWAL. This Note is given in renewal of Indebtedness under a prior promissory
note, and nothing in this Note shall constitute the satisfaction or
extinguishment of such Indebtedness, nor shall it be a novation of the amount
owed by Borrower under the Loan Agreement prior to its restatement; rather this
Note merely evidences a replacement of the amounts available to be borrowed by
Borrower from Bank under the Loan Agreement.

USURY SAVINGS. The usury savings provisions set forth in the Loan Agreement
(including the provisions of subparts (iii) and (iv) of Section 2.13 of the Loan
Agreement), are hereby incorporated into this Note by this reference.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF
THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO
THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE NOTE.

BORROWER:                             GMX RESOURCES INC.

                                      By: _____________________________________
                                          Name:  Ken L. Kenworthy, Sr.
                                          Title: Executive Vice President & CFO
<PAGE>
                                                                       EXHIBIT A
                                                                        PAGE -6-

STATE OF OKLAHOMA    )
                     )
                     ) SS:
                     )
COUNTY OF OKLAHOMA   )

                  BEFORE ME, the undersigned Notary Public duly commissioned
qualified and sworn within and for the State and County written above,
personally came and appeared Ken L. Kenworthy, Sr., to me personally known, and
who being by me duly sworn, did say that he is the authorized Executive Vice
President & CFO of GMX Resources Inc., whose name is subscribed to the foregoing
Line of Credit Note and that he executed the foregoing Line of Credit Note by
authority of said corporation's board of directors on behalf of said
corporation.

                  THUS DONE AND SIGNED before me and the two undersigned
witnesses in the County and State aforesaid, on this ____ day of June, 2006.
Witness my hand and official seal.

WITNESSES:

_____________________                        ___________________________________
Name:                                        Name:   Ken L. Kenworthy, Sr.

_____________________
Name:

                       ___________________________________
                                  NOTARY PUBLIC

                                      Seal

                       My Commission expires:_____________
                       Commission number: ________________
<PAGE>
                                    EXHIBIT B
                                    ---------

                        FORM OF ASSIGNMENT AND ACCEPTANCE

                        Dated Effective ____________, 200

                  Reference is made to the Amended and Restated Loan Agreement
dated effective as of June 7, 2006, as the same may be amended, modified or
supplemented from time to time (as so amended, modified or supplemented from
time to time, the "Agreement"), among GMX Resources Inc., as Borrower, Capital
One, National Association, as Agent, and the banks party thereto (the "Banks").
Capitalized terms which are used herein without definition and which are defined
in the Agreement shall have the same meanings herein as in the Agreement.

                  __________________(the "Assignor") and ___________________(the
"Assignee") agree as follows:

                  1. Assignment. The Assignor hereby sells and assigns, without
recourse, to the Assignee, and the Assignee hereby purchases and assumes,
without recourse, from the Assignor, as of the Effective Date (as hereinafter
defined) a ___% interest in and to all the Assignor's rights and obligations
under the Agreement (including, without limitation, its Commitment, the Loan
currently owing to it and the Note held by it and the related participations in
respect of issued letters of credit).

                  2. Concerning the Assignor. The Assignor (i) represents that
as of the date hereof, its Commitment percentage (without giving effect to
assignments thereof which have not yet become effective) is ___%, and the
outstanding balance of its Loan (unreduced by any assignments thereof which have
not yet become effective) is $_____________; (ii) makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Agreement or the
execution, legality, validity, enforceability, genuineness, sufficiency or value
of the Agreement or any other instrument or document furnished pursuant thereto,
other than that it is the legal and beneficial owner of the interest being
assigned by it hereunder and that such interest is free and clear of any adverse
claim; (iii) makes no representation or warranty and assumes no responsibility
with respect to the financial condition of the Borrower or the performance or
observance by the Borrower of any of its obligations under the Agreement, the
Note, or any Collateral Document or any other instrument or document furnished
pursuant thereto; and (iv) attaches the Note delivered to it under the Agreement
and requests that the Borrower exchange such Note for a new Note payable to each
of the Assignor and the Assignee as follows:
<PAGE>
                                                                       EXHIBIT B
                                                                        PAGE -2-

                  Notes Payable to
                  the Order of:                           Amount of Note
                  ----------------                        --------------

                  [Name of Assignor]                      [Note ($    )]

                  [Name of Assignee]                      [Note ($    )]

                  3. Concerning the Assignee. The Assignee (i) represents and
warrants that it is legally authorized to enter into this Assignment and
Acceptance; (ii) confirms that it has received a copy of the Agreement, together
with copies of the financial statements referred to therein and the most recent
financial statements delivered pursuant thereto and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and Acceptance; (iii) agrees that it
will, independently and without reliance upon the Assignor, the Agent or any
other Banks and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Agreement; (iv) appoints and authorizes the Agent to
take such action as agent on its behalf and to exercise such powers under the
Agreement and the Note as are delegated to the Agent by the terms thereof,
together with such powers as are reasonably incidental thereto; (v) agrees that
it will perform in accordance with their terms all the obligations which the
Agreement, the Note, and the Collateral Documents require are to be performed by
it as a Bank; and (vi) attaches any U.S. Internal Revenue Service forms required
under Section 9.6(a)(viii)(B) of the Loan Agreement.

                  4. Substitution. The Assignee shall deliver to the Agent one
or more signature pages to the Loan Agreement, and one or more signatures to the
Intercreditor Agreement (if in effect), in each case containing the signature of
the Assignee. The Assignee's address for notices to be given under the Loan
Agreement, and to be noted on the revised Schedule 1 to the Loan Agreement, is:

                              _____________________

                              _____________________

                              _____________________

                              Facsimile Number:_____________________

                  5. Effective Date. The effective date for this Assignment and
Acceptance shall be __________________ (the "Effective Date") (which Effective
Date shall be at least five (5) Business Days after the execution of this
Assignment and Acceptance). Following the execution of this Assignment and
Acceptance, it will be delivered to the Agent for acceptance together with the
Agent's fee and reasonable expenses as required by Loan Agreement Section
9.6(a)(v) and (vi).
<PAGE>
                                                                       EXHIBIT B
                                                                        PAGE -3-

                  6. Obligations. Upon such acceptance and recording, from and
after the Effective Date, (i) the Assignee shall be a party to the Agreement
and, to the extent provided in this Assignment and Acceptance, have the rights
and obligations of a Bank thereunder, and (ii) the Assignor shall, to the extent
provided in this Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Agreement, other than confidentiality
requirements.

                  7. Payments. Upon such acceptance and recording, from and
after the Effective Date, the Agent shall make all payments in respect of the
interest assigned hereby (including payments of principal, interest and other
amounts) to the Assignee. The Assignor and Assignee shall make all appropriate
adjustments in payments for periods prior to the Effective Date (such as accrued
interest and fees up to but excluding the Effective Date) or with respect to the
making of this assignment directly between themselves.

                  8. GOVERNING LAW. THIS ASSIGNMENT AND ACCEPTANCE SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

               THE REST OF THIS PAGE IS LEFT BLANK INTENTIONALLY.

<PAGE>
                                                                       EXHIBIT B
                                                                        PAGE -4-

                  9. Counterparts. This Assignment and Acceptance may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed taken together shall
constitute one and the same instrument.

                                     [NAME OF ASSIGNOR]

                                     By:
                                        ------------------------------------
                                         Name:
                                         Title:
                                         Date:

                                     [NAME OF ASSIGNEE]

                                     By:
                                        ------------------------------------
                                         Name:
                                         Title:
                                         Date:

                  Each of the undersigned hereby consents to the assignment
contemplated by this Assignment and Acceptance.

                                     GMX RESOURCES INC.

                                     By:
                                        ------------------------------------
                                         Name:
                                         Title:
                                         Date:

                                     CAPITAL ONE, NATIONAL ASSOCIATION,
                                     as Agent

                                     By:
                                        ------------------------------------
                                         Name:
                                         Title:
                                         Date:EXHIBIT 10.2
                                                                    ------------

         AMENDED AND RESTATED TEXAS DEED OF TRUST, MORTGAGE, ASSIGNMENT,
           SECURITY AGREEMENT, FIXTURE FILING AND FINANCING STATEMENT

                                      From

                               GMX RESOURCES INC.

                                       To

                             DAVID R. REID, TRUSTEE

                                       AND

                    CAPITAL ONE, NATIONAL ASSOCIATION, AGENT

                               Dated June 7, 2006

A CARBON, PHOTOGRAPHIC, FACSIMILE, OR OTHER REPRODUCTION OF THIS INSTRUMENT IS
SUFFICIENT AS A FINANCING STATEMENT. THE DEBTOR (THE BORROWER) IS AN OKLAHOMA
CORPORATION.

THIS INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS, SECURES PAYMENT OF
FUTURE ADVANCES, AND COVERS PROCEEDS OF COLLATERAL.

THIS INSTRUMENT COVERS AS-EXTRACTED COLLATERAL AND MINERALS AND OTHER SUBSTANCES
OF VALUE WHICH MAY BE EXTRACTED FROM THE EARTH (INCLUDING WITHOUT LIMITATION OIL
AND GAS), AND THE ACCOUNTS RELATED THERETO, WHICH WILL BE FINANCED AT THE
WELLHEADS OR MINEHEADS OF THE WELLS OR MINES LOCATED ON THE PROPERTIES DESCRIBED
IN SECTION 1.1 OF THIS INSTRUMENT. THIS INSTRUMENT, WHICH COVERS GOODS WHICH ARE
OR ARE TO BECOME FIXTURES ON THE REAL PROPERTY DESCRIBED HEREIN, IS TO BE FILED
FOR RECORD, AMONG OTHER PLACES, IN THE REAL ESTATE OR COMPARABLE RECORDS OF THE
COUNTIES REFERENCED IN EXHIBIT A HERETO AND SUCH FILING SHALL SERVE, AMONG OTHER
PURPOSES, AS A FIXTURE FILING. THE BORROWER HAS AN INTEREST OF RECORD IN THE
REAL ESTATE AND REAL PROPERTY CONCERNED, WHICH INTEREST IS DESCRIBED IN SECTION
1.1 AND EXHIBIT A OF THIS INSTRUMENT.

A POWER OF SALE HAS BEEN GRANTED IN THIS MORTGAGE. A POWER OF SALE MAY ALLOW
AGENT (AS HEREINAFTER DEFINED) OR THE TRUSTEE (AS HEREINAFTER DEFINED) TO TAKE
THE MORTGAGED PROPERTIES AND SELL

<PAGE>

THEM WITHOUT GOING TO COURT IN A FORECLOSURE ACTION UPON DEFAULT BY THE BORROWER
(AS HEREINAFTER DEFINED) UNDER THIS MORTGAGE.

WHEN RECORDED OR FILED                       THIS DOCUMENT
RETURN TO:                                   PREPARED WITH ASSISTANCE
                                             OF TEXAS COUNSEL BY:

James A. Stuckey                             James A. Stuckey
Phelps Dunbar, L.L.P.                        Phelps Dunbar, L.L.P.
365 Canal Street                             365 Canal Street
Suite 2000                                   Suite 2000
New Orleans, LA  70130                       New Orleans, LA  70130

                                        2
<PAGE>

                  THIS AMENDED AND RESTATED TEXAS DEED OF TRUST, MORTGAGE,
ASSIGNMENT, SECURITY AGREEMENT, FIXTURE FILING AND FINANCING STATEMENT dated
June 7, 2006, is by GMX RESOURCES INC., an Oklahoma corporation (herein called
"Borrower") to David R. Reid, as Trustee (as defined below, "Trustee") and
CAPITAL ONE, NATIONAL ASSOCIATION, as Agent under the term of the Loan Agreement
(as defined below) (referred to herein in such capacity as "Agent").

                                    RECITALS:

                  A. The Borrower executed a Deed of Trust, Mortgage,
Assignment, Security Agreement, Fixture Filing and Financing Statement (the
"Original Mortgage") dated November 2, 2005, to David R. Reid, as Trustee for
the benefit of Capital One, National Association (under its former name Hibernia
National Bank) (the "Original Bank"). The Original Mortgage was recorded in the
following counties of the State of Texas:

                  Office               Date          Filing Information
                  ------               ----          ------------------

                  Harrison County      11/04/05      5017580, Book 3217, page 8

                  Panola County        11/04/05      105586, Book 1291, page 362

                  B. The liens created by the Original Mortgage were granted to
secure, among other obligations, the indebtedness of the Borrower owed to the
Original Bank in connection with that certain Loan Agreement dated as of July
29, 2005 (the "Original Loan Agreement").

                  C. The Borrower, the Agent and the Banks listed on the
signature pages thereto are contemporaneously herewith executing an Amended and
Restated Loan Agreement dated as of June 7, 2006, (such Loan Agreement, as so
amended, and as same may otherwise from time to time be amended, modified, or
supplemented, and all other agreements given in substitution therefor, or in
renewal, extension or restatement thereof, in whole or in part, being herein
called the "Loan Agreement") amending and restating the Original Loan Agreement.

                  D. In addition to securing the indebtedness of the Borrower
from time to time owed to the Agent and the Banks under the Loan Agreement, the
liens created hereunder are to secure liabilities of the Borrower owed under the
Secured Hedge Agreements (as defined in the Loan Agreement).

                  E. The Borrower and the Agent wish to amend, extend and modify
the liens created under the Original Mortgage. Accordingly, without releasing or
modifying the liens created by the Original Mortgage on all properties described
therein (whether or not any such property is described in this instrument),
which liens are expressly hereby retained, the parties hereby amend and restate
the Original Mortgage in its entirety as follows:

<PAGE>

                                   ARTICLE 1.

                                  GENERAL TERMS

Section 1.1 Definitions. As used in this Mortgage, the terms "Agent",
"Borrower", "Loan Agreement" "Original Bank", "Original Loan Agreement", and
"Original Mortgage" shall have the meanings indicated above. As used in this
Mortgage, the following additional terms shall have the meanings indicated:

                  "Accounts" means all "accounts" (as defined in the UCC) now
owned or hereafter acquired by the Borrower including without limitation
accounts resulting from the sale of Hydrocarbons at the wellhead and accounts
now or hereafter arising in connection with the sale or other disposition of any
Hydrocarbons, and all revenues and rights to payment relating to the Borrower's
fees for services as operator of any Mineral Properties or to joint interest
billings or to amounts recoverable by the Borrower from nonoperating parties by
virtue of nonconsent elections or otherwise, and further means all rights
accrued, accruing or to accrue to receive payments of any and every kind under
all Contracts, including without limitation bonuses, rents and royalties which
are payable out of or measured by production of any Hydrocarbons or are
otherwise attributable to the Mineral Properties and all other revenues owing to
the Borrower in connection with the Mineral Properties, including revenues from
the treatment, transportation or storage of Hydrocarbons for third parties.

                  "Advances" has the meaning set forth in Section 4.8 ("Advances
by Agent") of this Mortgage.

                   "Business Day" means a day other than a Saturday, Sunday or
legal holiday for commercial banks in New Orleans, Louisiana.

                  "Collateral" has the meaning set forth in Section 2.2 ("The
Security Interests") of this Mortgage.

                  "Collateral Documents" means collectively all mortgages,
pledges, security agreements and other documents by which the Borrower grants
Liens and security interests in real or personal property or fixtures (or a
mixture thereof) to the Trustee or to the Agent.

                  "Contracts" means all (a) contracts and agreements described
in Exhibit A and all other contracts, operating agreements, farm-out or farm-in
agreements, sharing agreements, limited or general partnership agreements, area
of mutual interest agreements, mineral purchase agreements, contracts for the
sale, exchange, transportation or processing of Hydrocarbons, rights-of-way,
easements, surface leases, salt water disposal agreements, service contracts,
permits, franchises, licenses, pooling or unitization agreements, unit
designations and pooling orders now in effect or hereafter entered into by the
Borrower, including without limitation such contracts or agreements affecting
any of the Mineral Properties, Equipment or Hydrocarbons

                                        2
<PAGE>

now or hereafter covered hereby, or which are useful or appropriate in drilling
for, producing, treating, handling, storing, transporting or marketing oil, gas
or other minerals produced from any lands affected by the Mineral Properties,
and (b) all rights and choses in action (i.e., rights to enforce contracts or to
bring claims thereunder) relating to the foregoing, regardless of whether the
same arose or arise, or the events giving rise thereto occurred or occur on,
before or after the date hereof.

                  "Default" means the occurrence of any of the events specified
as an Event of Default, whether or not any requirement for notice or lapse of
time or other condition precedent has been satisfied.

                  "Deposit Accounts" means all deposit accounts of Borrower
maintained at the Agent from time to time.

                  "Equipment" means all equipment (whether in the form of
personal property, fixtures or otherwise) now owned or hereafter acquired by the
Borrower including without limitation all equipment now or hereafter located on
or used or held for use in connection with the Mineral Properties or in
connection with the operation thereof or the treating, handling, storing,
transporting, processing, purchasing, exchanging or marketing of Hydrocarbons,
including without limitation all wells, rigs, platforms, constructions,
extraction plants, facilities, gas systems (for gathering, treating, injection
and compression), water systems (for treating, disposal and injection),
compressors, casing, tubing, rods, flow lines, pipelines, derricks, tanks,
separators, pumps, machinery, tools and all other movable property and fixtures
now or hereafter located upon and dedicated to be used (or held for use) in
connection with any of the Mineral Properties, together with all additions,
accessories, parts, attachments, special tools and accessions now and hereafter
affixed thereto or used in connection therewith, and all replacements thereof
and substitutions therefor.

                  "Event of Default" has the meaning set forth in Section 5.1
("Events of Default") of this Mortgage.

                  "General Intangibles" means all "general intangibles" (as
defined in the UCC) now owned or hereafter acquired by the Borrower including
without limitation those related to the Mineral Properties, the Equipment or the
Hydrocarbons, the operation of the Mineral Properties or the Equipment (whether
the Borrower is operator or non-operator), or the treating, handling, storing,
transporting, processing, purchasing, exchanging or marketing of Hydrocarbons
(wherever located), or under which the proceeds of Hydrocarbons (wherever
located or sold) arise or are evidenced or governed, including, without
limitation, (i) all contractual rights and obligations or indebtedness owing to
the Borrower (other than Accounts) from whatever source arising in connection
with the sale or other disposition of any Hydrocarbons, including all rights to
payment owed or received by the Borrower pursuant to a "take-or-pay" provision
or gas balancing arrangement, (ii) all Contracts and other general

                                        3
<PAGE>

intangibles now or hereafter arising in connection with or resulting from
Contracts, (iii) all insurance proceeds and unearned insurance premiums
affecting all or any part of the Collateral, and (iv) all amounts received in
judgment, settlement, assignment or otherwise of claims or litigation and all
things in action, rights represented by judgments, claims arising out of tort
and other claims relating to the Collateral, including the right to assert and
otherwise to be the plaintiff and proper party of interest to commence, control,
prosecute and settle such action (whether as claims, counterclaims or otherwise,
and whether involving matters arising from casualty, condemnation,
indemnification, negligence, strict liability, other tort, contract or in any
other manner).

                  "Hydrocarbons" mean all oil, gas, casinghead gas, condensate,
distillate, other liquid and gaseous hydrocarbons, sulfur, and all other
minerals, whether similar to the foregoing or not, including without limitation
those produced, obtained or secured from or allocable to the Mineral Properties,
and any products refined, processed, recovered or obtained therefrom, including
oil in tanks.

                  "Instruments" means all instruments (as defined in the UCC)
now owned or hereafter acquired by the Borrower.

                  "Inventory" means all "inventory" (as defined in the UCC) now
owned or hereafter acquired by the Borrower.

                  "Investment Property" means all "investment property" (as
defined in the UCC) now owned or hereafter acquired by the Borrower.

                  "Lien" means any interest in property securing an obligation
owed to, or a claim by, a Person other than the owner of the property, whether
such interest is based on jurisprudence, statute or contract, and including but
not limited to the lien or security interest arising from a deed of trust,
mortgage, encumbrance, pledge, security agreement, conditional sale or trust
receipt or a lease, consignment or bailment for security purposes. The term
"Lien" shall include reservations, exceptions, encroachments, easements,
servitudes, usufructs, rights-of-way, covenants, conditions, restrictions,
leases and other title exceptions and encumbrances affecting property. For the
purposes of this Mortgage, the Borrower shall be deemed to be the owner of any
property which it has accrued or holds subject to a conditional sale agreement,
financing lease or other arrangement pursuant to which title to the property has
been retained by or vested in some other Person for security purposes.

                  "Mineral Properties" means collectively:

                  (a) the oil, gas and/or other mineral properties and/or
         mineral rights which are described in Exhibit A, attached hereto and
         made a part hereof;

                                        4
<PAGE>

                  (b) without limitation of the foregoing, all other right,
         title and interest of Borrower, of whatever kind or character (whether
         now owned or hereafter acquired by operation of law or otherwise) in
         and to (i) the oil, gas and/or mineral leases or other agreements
         described in Exhibit A hereto, (ii) the lands described or referred to
         in Exhibit A (or described in any of the instruments described or
         referred to in Exhibit A), without regard to any limitations as to
         specific undivided interests, lands or depths that may be set forth in
         Exhibit A hereto or in any of the leases or other agreements described
         in Exhibit A hereto;

                  (c) all of Borrower's right, title and interest (whether now
         owned or hereafter acquired by operation of law or otherwise) in and to
         all presently existing and hereafter created oil, gas and/or mineral
         unitization, pooling and/or communitization agreements, declarations
         and/or orders, and in and to the properties, rights and interests
         covered and the units created thereby (including, without limitation,
         units formed under orders, rules, regulations or other official acts of
         any federal, state or other authority having jurisdiction), which
         cover, affect or otherwise relate to the properties, rights and
         interests described in clause (a) or (b) above, including without
         limitation those described on Exhibit A;

                  (d) all of Borrower's right, title and interest (whether now
         owned or hereafter acquired by operation of law or otherwise) in and to
         all easements, servitudes, rights-of-way, surface leases, licenses,
         permits and other surface or subsurface rights, which are now or
         hereafter used, or held for use, in connection with the properties,
         rights and interests described in clause (a), (b) or (c) above, or in
         connection with the operation of such properties, rights and interests,
         or in connection with the treating, handling, storing, processing,
         transporting or marketing of oil, gas, other hydrocarbons, or other
         minerals produced from (or allocated to) such properties, rights and
         interests, including without limitation those described on Exhibit A;
         and

                  (e) all rights, estates, powers and privileges appurtenant to
         the foregoing rights, interests and properties.

                  "Mortgage" means this Amended and Restated Deed of Trust,
Mortgage, Assignment, Security Agreement, Fixture Filing and Financing
Statement, as amended or supplemented from time to time.

                  "Mortgaged Properties" has the meaning set forth in Section
2.1 ("Grant and Mortgage") of this Mortgage.

                  "Notes" shall mean those certain present and future line of
credit notes in the aggregate principal amount of $100,000,000.00, dated June 7,
2006, made by Borrower and payable to the order of the Banks with a maturity
date on or before July 29, 2008, such notes

                                        5
<PAGE>

bearing interest as therein provided, and containing a provision for an
additional amount as attorneys' fees, together with any and all other notes
given in substitution therefor, or in modification, amendment, renewal or
extension thereof, in whole or in part. The Notes are issued in renewal and
increase of the Secured Liabilities of Mortgagor heretofore evidenced by the
Note dated July 29, 2005, made by Borrower and payable to the order of the
Original Bank under the Original Loan Agreement in the principal amount of
$50,000,000.00.

                  "Other Proceeds" has the meaning set forth in Section 2.3
("Assignment") of this Mortgage.

                  "Person" means any individual, corporation, partnership, joint
venture, association, joint stock company, limited liability company, trust,
unincorporated organization, government or any agency or political subdivision
thereof, or any other form of entity.

                  "Proceeds" means all "proceeds" (as defined in the UCC)
including without limitation all cash and non-cash proceeds of, and all other
profits, rentals or receipts, in whatever form, arising from the collection,
sale, lease, exchange, assignment, licensing or other disposition of, or
realization upon, Collateral, including without limitation all claims of the
Borrower against third parties for loss of, damage to or destruction of, or for
proceeds payable under, or unearned premiums with respect to, policies of
insurance in respect of, any Collateral, and any condemnation or requisition
payments with respect to any Collateral, and including proceeds of all such
proceeds, in each case whether now existing or hereafter arising.

                  "Proceeds of Runs" has the meaning set forth in Section 2.3
("Assignment") of this Mortgage.

                  "Production Proceeds" has the meaning set forth in Section 2.3
("Assignment") of this Mortgage.

                  "Secured Hedge Providers" shall mean any one or more of the
present and future Banks under the Loan Agreement, or any Affiliate (as defined
in the Loan Agreement) of such Bank which is a party to one or more agreements
with the Borrower or any subsidiary establishing "Secured Hedge Obligations" as
defined in the Loan Agreement, so long as any such Bank is a "Bank" under the
Loan Agreement at the time such Secured Hedge Obligation is entered into with
such Bank or Affiliate (even if any such Bank subsequently ceases to be a Bank
under the Loan Agreement for any reason).

                  "Secured Liabilities" means (1) all present and future
amounts, liabilities or obligations of the Borrower to the Agent or any Bank or
to any successor or transferee of any Note or to the Trustee under or pursuant
to the Loan Agreement, the Notes, this Mortgage or the other Collateral
Documents, and (2) all present and future liabilities or obligations of the
Borrower to any of the Secured Hedge Providers under (x) transactions in
futures, forwards,

                                        6
<PAGE>

swaps or option contracts (including both physical and financial settlement
transactions) engaged in by the Borrower as a hedge against adverse changes in
the prices of natural gas or oil (including without limitation commodity price
hedges, swaps, caps, floors, collars and similar agreements designed to protect
the Borrower against fluctuations in commodity prices) engaged in by the
Borrower as a risk-management strategy and constituting "Permitted Commodity
Hedges" as defined in the Loan Agreement, or (y) forward contracts, futures
contracts, swaps, option contracts or other financial agreements or arrangements
relating to, or the value of which is dependent upon, interest rates (including
without limitation caps, floors, collars, puts and similar agreements designed
to protect the Borrower against fluctuations in interest rates) engaged in by
the Borrower as a risk-management strategy and constituting "Permitted Interests
Hedges" as defined in the Loan Agreement., in each case whether said amounts,
liabilities or obligations are liquidated or unliquidated, absolute or
contingent, now existing or hereafter arising, and including without limitation
the Notes and all other promissory notes heretofore or hereafter executed by the
Borrower pursuant to the Loan Agreement, in principal, interest, deferral and
delinquency charges, prepayment premiums, costs and attorneys' fees, as therein
stipulated, and under and pursuant to all amendments, supplements and
restatements to any of said documents. The Secured Liabilities include without
limitation all Advances and other amounts for which the Borrower is obligated
under the terms of this Mortgage to the Agent or to the Trustee. The Secured
Liabilities also include, without limitation, all post-petition interest,
expenses, and other duties and liabilities with respect to indebtedness or other
obligations described above, which would be owed but for the fact that they are
unenforceable or not allowable due to the existence of a bankruptcy,
reorganization, or similar proceeding. The Secured Liabilities secured by this
Mortgage further continue with respect to any renewals, modifications,
amendments, revisions or extensions of the Secured Liabilities. It is
contemplated and acknowledged that the Secured Liabilities may include revolving
credit loans and advances from time to time, and that this Mortgage shall have
effect, as of the date hereof, to secure all Secured Liabilities, regardless of
whether any amounts are advanced on the date hereof or on a later date or,
whether having been advanced, are later repaid in part or in whole and further
advances made at a later date.

                  "Secured Parties" shall mean collectively the Agent, the Banks
and the Secured Hedge Providers.

                  "Security Interests" means the security interests in the
Collateral granted hereunder securing the Secured Liabilities.

                  "Trustee" means the individual identified in Section 2.1
("Grant and Mortgage") of this Mortgage, and any successor trustee under this
Mortgage.

                  "UCC" means the Uniform Commercial Code, Secured Transactions
(Texas Bus. & Comm. Code, Chapter 9), in the State of Texas, as amended from
time to time; provided that if by reason of mandatory provisions of law, the
perfection or the effect of perfection or

                                        7
<PAGE>

non-perfection or priority of the Security Interests in any Collateral is
governed by the Uniform Commercial Code or comparable law as in effect in a
jurisdiction other than Texas, "UCC" means the Uniform Commercial Code as in
effect in such other jurisdiction for purposes of the provisions hereof relating
to such perfection or effect of perfection or non-perfection or priority.

         Section 1.2 Restatement. The Borrower and the Agent do hereby agree
that nothing in this Mortgage shall constitute the satisfaction or
extinguishment of the liens under the Original Mortgage or the indebtedness
secured thereby.

                                   ARTICLE 2.

                  GRANTS IN TRUST, LIENS AND SECURITY INTERESTS

         Section 2.1 Grant and Mortgage. (a) In order to secure the full and
punctual payment and performance of all present and future Secured Liabilities,
the Borrower does hereby GRANT, BARGAIN, SELL, CONVEY, TRANSFER, ASSIGN and SET
OVER to David R. Reid, Trustee, with an address as stated in Section 6.1
("Notices"), and grant to Trustee a POWER OF SALE (pursuant to this Mortgage and
applicable law) with respect to, all for the benefit of Agent (and the ratable
benefit of the Secured Parties), the following described properties, rights and
interests (herein collectively called the "Mortgaged Properties"):

         (1) The Mineral Properties, together with all rents, issues, profits,
         products and proceeds, whether now or hereafter existing or arising,
         from or attributable to the Mineral Properties, and any Hydrocarbons
         in, under and/or that may be produced therefrom.

         (2) Without limitation of the foregoing, the Borrower's rights in the
         fixtures, improvements and other constructions now or hereafter located
         on the Mineral Properties, including without limitation any buildings,
         platforms, structures, towers, rigs or other real property, fixtures or
         component parts thereof.

         (3) Without limitation of the foregoing, the Contracts.

         (4) Without limitation of the foregoing, the Equipment.

The descriptions of the Mineral Properties contained in Exhibit A are amplified
(but not limited) by the explanations contained in Exhibit 1 attached hereto and
made a part hereof.

TO HAVE AND TO HOLD the Mortgaged Properties unto the Trustee and his successors
and/or substitutes in this trust, and to their successors and substitutes, in
trust, however, upon and subject to the terms and conditions hereof and Borrower
does hereby bind itself and its successors and assigns to WARRANT AND FOREVER
DEFEND title to the Mortgaged Properties unto Trustee and Trustee's successors
and assigns, forever, against every person

                                        8
<PAGE>

whosoever claiming or to claim the same, or any part thereof, except for Liens
expressly permitted hereunder.

                  SUBJECT, however, to (i) the restrictions, exceptions,
reservations, conditions, limitations and other matters, if any, set forth or
specified in the specific descriptions of such properties and interests in
Exhibit A (including all presently existing royalties, overriding royalties,
payments out of production and other burdens which are specified in Exhibit A
and which are taken into consideration in computing any percentage, decimal or
fractional interests set forth in Exhibit A), and (ii) the condition that the
Agent shall not be liable in any respect for the performance of any covenant or
obligation of the Borrower in respect of the Mortgaged Properties.

                  (b) In the event that the Borrower acquires (by operation of
law or otherwise) additional undivided interests in some or all of the Mineral
Properties, this Mortgage shall automatically encumber such additions or
increases to the Borrower's interest in the Mineral Properties without need of
further act or document. Further, in the event the Borrower becomes the owner of
an interest in any part of the land described either in Exhibit A or in the
documents described in Exhibit A or otherwise subject to or covered by the
Mineral Properties, this Mortgage shall automatically encumber such ownership
interest of the Borrower without need of further act or document.

         Section 2.2 The Security Interests. In order to further secure the full
and punctual payment and performance of all present and future Secured
Liabilities, the Borrower hereby grants to the Agent, for itself and the ratable
benefit of Secured Parties, a continuing security interest in and to the entire
right, title and interest of the Borrower in, to and under the following
property, whether now owned or existing or hereafter acquired or arising (by
operation of law or otherwise) and regardless of where located:

         (1) the Mineral Properties;

         (2) the Accounts;

         (3) the Hydrocarbons, together with all liens and security interests
         securing payment of the proceeds of the Hydrocarbons, including, but
         not limited to, those liens and security interests provided for under
         (i) statutes, rules, orders or regulations enacted in the jurisdictions
         in which the Mortgaged Properties are located, or (ii) statutes, rules,
         orders or regulations made applicable to the Mortgaged Properties under
         federal law (or some combination of federal and state law);

         (4) the Equipment;

                                        9
<PAGE>

         (5) the General Intangibles (including the Contracts);

         (6) the Deposit Accounts, all cash deposited therein from time to time,
         and other monies and property of any kind of the Borrower in the
         possession or under the control of the Agent;

         (7) the Instruments;

         (8) the Inventory;

         (9) the Investment Property;

         (10) all geological, geophysical, engineering, seismic, reserve,
         production, accounting, title and legal data, reports and information
         and all books and records in any form (including, without limitation,
         customer lists, credit files, computer programs, tapes, disks, punch
         cards, data processing software, transaction files, master files,
         printouts and other computer materials and records) of the Borrower,
         pertaining to any of the Mineral Properties or Collateral; and

         (11) all Proceeds and products of all or any of the Collateral
         described in clauses 1 through 10 hereof.

The term "Collateral" means each and all of the items and property rights
described in clauses 1-11 above, together with the Mortgaged Properties and the
Proceeds of Runs.

         Section 2.3 Assignment. (a) Borrower does hereby absolutely and
unconditionally assign, transfer and set over to Agent, for the ratable benefit
of the Secured Parties, effective as of 7:00 a.m. July 29, 2005, the following:

                  (i) all Hydrocarbons which accrue to Borrower's interest in
the Mortgaged Properties, and all proceeds of such Hydrocarbons, which proceeds
include, without limitation, all advance or other payments for hydrocarbons not
yet delivered, such as those received pursuant to "take-or-pay" arrangements
(herein collectively referred to as the "Production Proceeds"), together with
the immediate and continuing right to collect and receive such Production
Proceeds; and

                  (ii) all other monies which accrue to Borrower's interest in
the Mineral Properties, and all present and future rents therefrom, which rents
include, without limitation, all royalties, delay rentals, shut-in payments and
similar payments (herein collectively called the "Other Proceeds").

Borrower directs and instructs any and all purchasers of any Hydrocarbons and
all other obligors of Production Proceeds and Other Proceeds (herein
collectively called "Proceeds of Runs"),

                                       10
<PAGE>

upon written notice from Agent, to pay to Agent all of the Proceeds of Runs
accruing to Borrower's interest until such time as such purchasers or other
obligors have been furnished with evidence that all Secured Liabilities have
been paid and that this Mortgage has been released. Borrower agrees that no
purchasers of the Hydrocarbons or other obligors of the Proceeds of Runs shall
have any responsibility for the application of any funds paid to Agent.

         (b) Borrower hereby constitutes and appoints Agent as Borrower's
special attorney-in-fact (with full power of substitution, either generally or
for such periods or purposes as Agent may from time to time prescribe) in the
name, place and stead of Borrower to do any and every act and exercise any and
every power that Borrower might or could do or exercise personally with respect
to all Hydrocarbons and Proceeds of Runs (the same having been assigned by
Borrower to Agent pursuant to Section 2.3(a) hereof), expressly inclusive, but
not limited to, the right, power and authority to:

                  (1) execute and deliver in the name of Borrower any and all
         transfer orders, division orders, letters in lieu of transfer orders,
         indemnifications, certificates and other instruments of every nature
         that may be requested or required by any purchaser of Hydrocarbons from
         any of the Mortgaged Properties for the purposes of effectuating
         payment of the Production Proceeds to Agent or which Agent may
         otherwise deem necessary or appropriate to effect the intent and
         purposes of the assignment contained in Section 2.3(a); and

                  (2) if under any product sales agreements other than division
         orders or transfer orders, any Production Proceeds are required to be
         paid by the purchaser to Borrower so that under such existing
         agreements payment cannot be made of such Production Proceeds to Agent,
         to make, execute and enter into such sales agreements or other
         agreements as are necessary to direct Production Proceeds to be payable
         to Agent;

giving and granting unto said attorney-in-fact full power and authority to do
and perform any and every act and thing whatsoever necessary and requisite to be
done as fully and to all intents and purposes, as Borrower might or could do if
personally present. Borrower shall be bound thereby as fully and effectively as
if Borrower had personally executed, acknowledged and delivered any of the
foregoing certificates or documents. The powers and authorities herein conferred
upon Agent may be exercised by Agent through any person who, at the time of the
execution of the particular instrument, is an officer of Agent. The power of
attorney herein conferred is granted for valuable consideration and hence is
coupled with an interest and is irrevocable so long as the Secured Liabilities,
or any part thereof, shall remain unpaid. All persons dealing with Agent or any
substitute shall be fully protected in treating the powers and authorities
conferred by this paragraph as continuing in full force and effect until advised
by Agent that all the Secured Liabilities are fully and finally paid. Agent may,
but shall not be obligated to, take such action as it deems appropriate in an
effort to collect the Production Proceeds and any reasonable

                                       11
<PAGE>

expenses (including reasonable attorney's fees) so incurred by Agent shall be a
demand obligation of Borrower (which obligation the Borrower expressly promises
to pay) owing by the Borrower to Agent and shall bear interest, from the date
expended until paid, at the rate described in Section 4.8 ("Advances by Agent")
hereof.

         Section 2.4 Condemnation. The Borrower hereby assigns to the Agent any
and all awards that may be given or made in any proceedings by any legally
constituted authority to condemn or expropriate the Collateral, or any part
thereof, under power of eminent domain, and if there is such a condemnation or
expropriation, the Agent may, at its election, either pay the net proceeds
thereof toward the payment of the Secured Liabilities or pay the net proceeds
thereof to the Borrower.

         Section 2.5 Scope and Term of Secured Liabilities. The Borrower
acknowledges that this Mortgage secures all Secured Liabilities under or
pursuant to the Loan Agreement, the Notes, this Mortgage or the other Collateral
Documents, whether such loans or advances made or incurred by the Agent are
optional or obligatory by the Banks, and under or pursuant to the Secured Hedge
Agreements. This Mortgage is and shall remain effective, even though the amount
of the Secured Liabilities may now be zero or may later be reduced to zero,
until all of the amounts, liabilities and obligations, present and future,
comprising the Secured Liabilities have been incurred and are extinguished.

         Section 2.6 Delivery of Transfer Orders. Independent of the other
provisions and authorities herein granted, the Borrower agrees to execute and
deliver any and all transfer orders, letters in lieu thereof, division orders
and other instruments that may be requested by Agent or that may be required by
any purchaser of any Hydrocarbons for the purpose of effectuating payment of the
Proceeds of Runs to Agent. If under any existing sales agreements, other than
division orders or transfer orders, any Proceeds of Runs are required to be paid
by the purchaser to the Borrower so that under such existing agreements payment
cannot be made of such Proceeds of Runs to Agent, the Borrower's interest in all
Proceeds of Runs under such sales agreements and in all other Proceeds of Runs
which for any reason may be paid to the Borrower shall, when received by the
Borrower, constitute trust funds in the Borrower's hands and shall be
immediately paid over to Agent.

         Section 2.7 Change of Purchaser. Should any Person now or hereafter
purchasing or taking Hydrocarbons fail to make payment to Agent of the Proceeds
of Runs within 30 days of when due, Agent shall have the right to make, or to
require the Borrower to make, a change of connection and the right to designate
or approve the purchaser with whose facilities a new connection shall be made,
and Agent shall have no liability or responsibility in connection therewith so
long as ordinary care is used in making such designation.

         Section 2.8 Payment of Proceeds. In the event that, for its
convenience, the Agent should elect with respect to all or particular Mineral
Properties or Contracts not to

                                       12
<PAGE>

exercise immediately its right to receive Hydrocarbons or Proceeds of Runs, then
the purchasers or other Persons obligated to make such payment shall continue to
make payment to the Borrower until such time as written demand has been made
upon them by the Agent that payment be made direct to the Agent. Such failure to
notify such purchasers or other Persons shall not in any way waive, remit or
release the right of the Agent to receive any payments not theretofore paid over
to the Borrower before the giving of written notice. In this regard, in the
event payments are made direct to the Agent, and then, at the request of the
Agent payments are, for a period or periods of time, paid to the Borrower, the
Agent shall nevertheless have the right, effective upon written notice, to
require future payments be again made to it.

         Section 2.9 Limitation of Liability; Indemnity. The Agent and its
successors and assigns are hereby absolved from all liability for failure to
enforce collection of the Proceeds of Runs and from all other responsibility in
connection therewith, except the responsibility of each to account (by
application upon the Secured Liabilities or otherwise) to the Borrower for funds
actually received. The Borrower agrees to indemnify and hold harmless Agent and
the other Secured Parties against any and all liabilities, actions, claims,
judgments, costs, charges and attorneys' fees by reason of the assertion that
such parties received, either before or after payment and performance in full of
the Secured Liabilities, funds from the production of Hydrocarbons or the
Proceeds of Runs claimed by third persons (and/or funds attributable to sales of
production which (i) were made at prices in excess of the maximum price
permitted by or (ii) were otherwise made in violation of contracts, agreements,
laws, rules, regulations and/or orders governing such sales), and the Agent
shall have the right to defend against any such claims or actions, employing
attorneys of Agent's own selection and if not furnished with indemnity
satisfactory to them, the Agent shall have the right to compromise and adjust
any such claims, actions and judgments, and in addition to the rights to be
indemnified as herein provided, all amounts paid by the Agent in compromise,
satisfaction or discharge of any such claims, actions or judgments, and all
court costs, attorneys' fees and other expenses of every character expended by
the Agent pursuant to the provisions of this Section shall be a demand
obligation (which obligation the Borrower hereby expressly promises to pay)
owing by the Borrower to such parties and shall bear interest, from the date
expended until paid, at the rate described in Section 4.8 ("Advances by Agent")
hereof. WITHOUT LIMITATION, IT IS THE INTENTION OF BORROWER AND BORROWER AGREES
THAT THE FOREGOING RELEASES AND INDEMNITIES SHALL APPLY TO EACH INDEMNIFIED
PARTY WITH RESPECT TO ALL CLAIMS, DEMANDS, LIABILITIES, LOSSES, DAMAGES
(INCLUDING WITHOUT LIMITATION CONSEQUENTIAL DAMAGES, CAUSES OF ACTION,
JUDGMENTS, PENALTIES, COSTS AND EXPENSES AND FURTHER INCLUDING WITHOUT
LIMITATION REASONABLE ATTORNEYS' FEES AND EXPENSES, WHICH IN WHOLE OR IN PART
ARE CAUSED BY OR ARISE OUT OF STRICT LIABILITY OR OUT OF THE NEGLIGENCE OF SUCH
(AND/OR ANY OTHER) INDEMNIFIED PARTY. However, such indemnities and releases
shall not apply to any particular indemnified party (but shall apply to

                                       13
<PAGE>

the other indemnified parties) to the extent the subject of the indemnification
is caused by or arises out of the gross negligence or willful misconduct of such
particular indemnified party.

         Section 2.10 Duty to Perform. Nothing herein contained shall detract
from or limit the obligation of the Borrower to make prompt payment of the
Secured Liabilities at the time and in the manner provided herein and in the
Loan Agreement and the Secured Hedge Agreements regardless of whether the
Proceeds of Runs herein assigned are sufficient to pay same. The Borrower will
do and perform every act required of it by this Mortgage at the time or times
and in the manner specified.

                                   ARTICLE 3.

                         REPRESENTATIONS AND WARRANTIES

         The Borrower represents and warrants to the Agent that:

         Section 3.1 Title. The Collateral (including without limitation the
Mineral Properties) is accurately, completely, adequately and sufficiently
described herein and in Exhibit A as required by all applicable laws for this
Mortgage to create a Lien on all of the Collateral. The execution, delivery and
performance of this Mortgage and the creation of the liens and grants in trust
hereunder do not violate any provision of or constitute a default under any
operating agreement or other instrument affecting or comprising any of the
Collateral or to which the Borrower is a party. Except as otherwise specifically
disclosed to the Agent in writing with respect to any particular part of the
Mineral Properties, the Borrower represents and warrants to the Agent that (a)
the Mineral Properties described in Exhibit A hereto are valid, subsisting
leases and contracts, in full force and effect, (b) all producing wells located
on the lands described in Exhibit A have been drilled, operated and produced in
conformity with all applicable laws, rules and regulations of all regulatory
authorities having jurisdiction, and are subject to no penalties on account of
past production, and that such wells are in fact bottomed under and are
producing from, and the well bores are wholly within, lands described in Exhibit
A (or in the case of wells located on properties unitized therewith, such
unitized properties), (c) the Borrower, to the extent of the interests specified
in Exhibit A, has legal, valid and defensible title to each property right or
interest constituting the Mineral Properties, subject to exceptions permitted by
Section 6.2 of the Loan Agreement, and the respective working interests and net
revenue interests of the Borrower in and to the Hydrocarbons as set forth on
Exhibit A hereto, and the Borrower's percentage interests in the Mineral
Properties, cash flow, net income and other distributions and in the costs of
exploration, development and production, all as set forth in Exhibit A hereto,
are true and correct in all material respects and accurately reflect the
respective interests to which the Borrower is legally entitled, (d) the Borrower
is not obligated, by virtue of any prepayment under any contract providing for
the sale by the Borrower of Hydrocarbons which contains a "take or pay" clause
or under any similar arrangement, to deliver Hydrocarbons produced or to be
produced from the Mineral Properties at some future time without then or
thereafter receiving full payment therefor, and (e) no agreement, contract or
instrument set forth

                                       14
<PAGE>

in Exhibit A or contains any provision which would prevent the practical
realization of the benefits of this Mortgage as to the Collateral. With respect
to all wells existing on the date hereof, such shares of production and expenses
are not subject to change (pursuant to non-consent provisions of operating
agreements described in Exhibit A or otherwise) except, and only to the extent
that, such changes are expressly described in Exhibit A. The Borrower will
warrant and forever defend the Collateral unto the Agent against every person
whomsoever lawfully claiming the same or any part thereof except persons
claiming under encumbrances of record permitted by Section 6.2 of the Loan
Agreement, and will maintain and preserve the Lien hereby created so long as any
of the Secured Liabilities remains unpaid.

         Section 3.2 Rents; Royalties. All rents, royalties and other payments
(except for those which are being contested in good faith and by appropriate
proceedings and for which the Borrower has established adequate reserves and so
long as the payment of same is not a condition to be met in order to maintain an
oil, gas and/or other mineral lease or other agreement in force) due and payable
under the Mineral Properties which are productive of oil and/or gas (or are
included in units productive of oil and/or gas) and all other oil, gas and/or
mineral leases, contracts and other agreements forming a part of the Mortgaged
Properties, have been and are being properly and timely paid, and the Borrower
is not in default with respect to any obligations (and the Borrower is not aware
of any default by any third party with respect to such third party's
obligations) under such leases, contracts and other agreements, or otherwise
attendant to the ownership or operation of the Collateral, where such default
could adversely affect the ownership or operation of the Collateral to which
such obligations relate. The Borrower is not currently accounting (and does not
anticipate accounting) for any royalties, or overriding royalties or other
payments out of production, on a basis (other than delivery in kind) where such
payments are based other than on proceeds received by Borrower from sale; the
Borrower has advised the Agent in writing of situations, if any, where a
contingent liability to so account may exist.

         Section 3.3 No Limitations on Payments for Production. Except as
otherwise specifically disclosed to the Agent in writing with respect to any
particular part of the Mineral Properties, (i) neither Borrower, nor its
predecessors in title, have received prepayments (including, but not limited to,
payments for gas not taken pursuant to "take or pay" arrangements) for any
Hydrocarbons produced or to be produced from the Mineral Properties after the
date hereof; (ii) none of the Mineral Properties is subject to any contractual
or other arrangement whereby payment for production is to be deferred for a
substantial period after the month in which such production is delivered (i.e.,
in the case of oil not in excess of sixty (60) days, and in the case of gas not
in excess of ninety (90) days); (iii) none of the Mineral Properties is subject
to any contractual, or other, arrangement for the sale of crude oil which cannot
be cancelled on ninety (90) days (or less) notice, and none of the Mineral
Properties is subject to a gas sales contract which contains terms which are not
customary in the industry; (iv) none of the Mineral Properties is subject at the
present time to any regulatory refund obligation and, to the

                                       15
<PAGE>

best of Borrower's knowledge, no facts exist which might cause the same to be
imposed; (v) none of the Mineral Properties is subject to an arrangement or
agreement under which any purchaser or other Person is entitled to "make-up" or
otherwise receive deliveries of Hydrocarbons at any time after the date hereof
without paying at such time the full contract price therefor; and (vi) no Person
is entitled to receive any portion of the interest of the Borrower in any
Hydrocarbons produced or to be produced from the Mineral Properties or to
receive cash or other payments from the Borrower to "balance" any
disproportionate allocation of Hydrocarbons under any operating agreement, gas
balancing and storage agreement, gas processing or dehydration agreement, or
other similar agreements, except as permitted by the Loan Agreement.

         Section 3.4 Pricing. The prices being received for the production of
Hydrocarbons do not violate any Contract, law or regulation. Where applicable,
all of the wells located on the Mineral Properties and production of
Hydrocarbons therefrom have been properly classified under appropriate
governmental regulations.

         Section 3.5 Consents and Preferential Rights. There are no preferential
purchase rights held by third parties affecting any part of the Collateral
except for the right of first refusal on Phase III in favor of Penn Virginia Oil
& Gas under the Participation Agreement dated December 29, 2003, or rights of
third parties to prohibit the pledge or mortgage to Agent of any part of the
Collateral without the consent of such third parties.

         Section 3.6 No Inconsistent Agreements. The Borrower has not performed
any acts or signed any agreements which might prevent the Agent from enforcing
any of the terms of this Mortgage or which would limit the Agent in any such
enforcement.

         Section 3.7 Status of Contracts. All of the Contracts and obligations
of the Borrower that relate to the Mineral Properties (i) are in full force and
effect and constitute legal, valid and binding obligations of the Borrower, and
(ii) neither the Borrower nor, to the knowledge of the Borrower, any other party
to the Contracts (a) is in breach of or default, or with the lapse of time or
the giving of notice, or both, would be in breach or default, with respect to
any of its obligations thereunder or (b) has given or threatened to give notice
of any default under or inquiry into any possible default under, or action to
alter, terminate, rescind or procure a judicial reformation of any Contract.

         Section 3.8 Accounts. The Accounts represent bona fide obligations of
the respective account debtors, which obligations are free and clear of any set
off, compensation, counterclaim, defense, allowance or adjustment other than
discounts for prompt payment shown on the invoice, and arose in the ordinary
course of the Borrower's business.

         Section 3.9 Status of Equipment. To the best of the Borrower's
knowledge, the Equipment, fixtures and other tangible personal property forming
a part of the Collateral are in good repair and condition and are adequate for
the normal operation of the Collateral in

                                       16
<PAGE>

accordance with prudent industry standards; all of such Collateral is located on
the Mineral Properties, except for that portion thereof which is located
elsewhere (including that usually located on the Mineral Properties but now
temporarily located elsewhere) in the course of the normal operation of the
Mineral Properties.

         Section 3.10 UCC Number. The Oklahoma Secretary of State does not
assign an organizational identification number to the Borrower.

         Section 3.11 Chief Executive Office. The chief executive office of the
Borrower is located at 9400 North Broadway, Suite 600, Oklahoma City, Oklahoma
73114. The chief executive office of the Borrower has been continuously located
within the State of Oklahoma from and after its formation.

         Section 3.12 Name and State of Formation. The Borrower is formed and
organized under the laws of the State of Oklahoma. The exact name of the
Borrower is set forth on the cover page of this Mortgage.

                                   ARTICLE 4.

                                    COVENANTS

         Section 4.1 Insurance and Notice. The Borrower will procure and
maintain for the benefit of the Agent original paid-up insurance policies
against such liabilities, casualties, risks and contingencies, in such amounts
and form and substance, with such financially sound and reputable companies, and
with such expiration dates, as are acceptable to the Agent, and containing a
non-contributory standard mortgagee clause or its equivalent in favor of the
Agent. The Borrower will at all times maintain costs of regaining control of
well insurance or similar insurance to the extent customary in the industry in
the pertinent area of operations. Each policy shall contain an agreement by the
insurer not to cancel or amend the policy without giving the Agent at least
thirty (30) days prior written notice of its intention to do so. Upon request of
the Agent, the Borrower will furnish or cause to be furnished to the Agent from
time to time a summary of the insurance coverage of the Borrower in form and
substance satisfactory to the Agent and if requested will furnish the Agent
original certificates of insurance and/or copies of the applicable policies and
all renewals thereof. In the event the Borrower should, for any reason
whatsoever, fail to keep the corporeal (tangible) Collateral or any part thereof
so insured, or to keep said policies so payable, or fail to deliver to the Agent
the original or certified policies of insurance and the renewals therefor upon
demand, then the Agent, if it so elects, may itself have such insurance effected
in such amounts and with such companies as it may deem proper and may pay the
premiums therefor (as an Advance as defined hereinbelow). The Borrower will
notify the Agent immediately in writing of any material blowout, fire or other
casualty to or accident involving the Mortgaged Properties, the Equipment or the
Hydrocarbons, whether or not such blowout, fire, casualty or accident is covered
by insurance. The Borrower will promptly further notify the Borrower's insurance
company and to submit an appropriate claim and proof of

                                       17
<PAGE>

claim to the insurance company if such a casualty or accident occurs. In the
event of any loss or any of such policies, the Agent may, at its election,
either apply the net proceeds thereof toward the payment of the Secured
Liabilities or pay the net proceeds thereof to the Borrower, either wholly or in
part, and under such conditions as the Agent may determine to enable the
Borrower to repair or restore the Collateral.

         Section 4.2 Operation of the Mortgaged Properties. Whether or not the
Borrower is the operator of the Mortgaged Properties, the Borrower will, at the
Borrower's own expense, (a) do all things necessary to keep unimpaired the
Borrower's rights in the Mortgaged Properties (subject to any permitted
abandonment provisions hereinbelow), (b) cause the lands described in Exhibit A
to be maintained, developed, protected against drainage, and continuously
operated for the production of hydrocarbons in a good and workmanlike manner as
would a prudent operator, and in accordance with generally accepted practices
and applicable operating agreements, and (c) cause to be paid, promptly as and
when due and payable, all rentals and royalties payable in respect of the
Mortgaged Properties, and all expenses incurred in or arising from the operation
or development of the Mortgaged Properties. The Borrower will observe and comply
with all terms and provisions, express or implied, of the Mineral Properties,
and all agreements and contracts of any type relating to the Mortgaged
Properties, in order to keep the same in full force and effect, including,
without limitation, maintenance of productive capacity of each well or unit
comprising the Mortgaged Properties, and will not, without the prior written
consent of the Agent, surrender, abandon or release (or otherwise reduce its
rights under) any such lease, in whole or in part, so long as any well situated
thereon (whether or not such well is located on the Mineral Properties), or
located on any unit containing all or any part of such leases, is capable (or is
subject to being made capable through drilling, reworking or other operations
which it would be economically feasible to conduct) of producing hydrocarbons in
commercial quantities (as determined without considering the effect of this
Mortgage); provided, however, that the Borrower may, to the extent expressly
required by the terms of any such lease under a "Pugh clause" or similar
provision, or to the extent otherwise required by law, confirm to the lessor
thereof that the lease has by its terms terminated as to any specified portion
thereof on which no such well exists. Without the express prior written consent
of the Agent, Borrower will not abandon or consent to the abandonment of any
well producing from the Mortgaged Properties (or properties unitized therewith)
so long as such well is capable (or is subject to being made capable through
drilling, reworking or other operations which it would be commercially feasible
to conduct) of producing hydrocarbons in commercial quantities (as determined
without considering the effect of this Mortgage but considering the cost of such
drilling, reworking and other operations). Without the express prior written
consent of the Agent, the Borrower will not elect not to participate in a
proposed operation on the Mortgaged Properties where the effect of such election
would be the forfeiture either temporarily (i.e., until a certain sum of money
is received out of the forfeited interest) or permanently of any interest in the
Mortgaged Properties except in the ordinary course of business in good faith.

                                       18
<PAGE>

         Section 4.3 Pooling and Unitization. The Borrower has the right, and is
hereby authorized, to pool or unitize all or any part of any tract of land
described in Exhibit A, insofar as relates to the Mortgaged Properties, with
adjacent lands, leaseholds and other interests, when, in the reasonable judgment
of the Borrower, it is necessary or advisable to do so in order to form a
drilling unit to facilitate the orderly development of that part of the
Mortgaged Properties affected thereby, or to comply with the requirements of any
law or governmental order or regulation relating to the spacing of wells or
proration of the production therefrom; provided, however, that the Hydrocarbons
produced from any unit so formed shall be allocated among the separately owned
tracts or interests comprising the unit in proportion to the respective surface
areas thereof; and provided further that the Borrower is not be entitled to form
any such unit without the written consent of the Agent (which consent shall not
be unreasonably withheld) if the effect of such formation would be to decrease
the amount of Hydrocarbons which would be subject to this Mortgage. Any unit so
formed may relate to one or more zones or horizons, and a unit formed for a
particular zone or horizon need not conform in area to any other unit relating
to a different zone or horizon, and a unit formed for the production of oil need
not conform in area with any unit formed for the production of gas. Immediately
after formation of any such unit, the Borrower shall furnish to the Agent a true
copy of the pooling agreement, declaration of pooling or other instrument
creating such unit, in such number of counterparts as the Agent may reasonably
request. The interest in any such unit attributable to the Mortgaged Properties
(or any part thereof) included therein shall become a part of the Mortgaged
Properties and shall be subject to the Lien hereof in the same manner and with
the same effect as though such unit and the interest of the Borrower therein
were specifically described in Exhibit A. The Borrower may enter into pooling or
unitization agreements not hereinabove authorized only with the prior written
consent of the Agent.

         Section 4.4 Contracts. The Borrower will not enter into any operating
agreement or other Contract which materially adversely affects the Collateral or
the Mineral Properties, or which is not in the ordinary course of business. The
Borrower will promptly take all action necessary to enforce or secure the
observance or performance of any term, covenant, agreement or condition to be
observed or performed by third parties under any Contract, or any part thereof,
or to exercise any of its rights, remedies, powers and privileges under any
Contract, all in accordance with the respective terms thereof. The Borrower will
not do or permit anything to be done to the Collateral that may violate the
terms of any insurance covering the Collateral or any part thereof.

         Section 4.5 Filing. (a) The Borrower agrees that a facsimile,
photostatic or other reproduction of this Mortgage is sufficient as a financing
statement. This Mortgage shall be effective as a financing statement, filed as a
fixture filing with respect to all fixtures included within the Collateral, and
shall also be effective as a financing statement covering as extracted
collateral and minerals or the like (including oil and gas) and other substances
of value that may be extracted from the earth and accounts related thereto,
which will be financed at the wellhead

                                       19
<PAGE>

or minehead of the wells or mines located on the Mortgaged Properties. This
Mortgage is to be filed for record in the real property records of each county
where any part of the Mortgaged Properties is situated or which lies shoreward
of any Mortgaged Property (i.e., to the extent a Mortgaged Property lies
offshore within the projected seaward extension of the relevant county
boundaries), and may also be filed in the offices of the Bureau of Land
Management or the Minerals Management Service or any relevant state agency (or
any successor agencies). This Mortgage shall also be effective as a financing
statement covering any other Collateral and may be filed in any other
appropriate filing or recording office. The mailing address of the Borrower and
the address of the Agent from which information concerning the Security
Interests evidenced hereunder may be obtained are the respective addresses of
the Borrower and the Agent set forth in Article 6. The Borrower shall pay all
costs of or incidental to the recording or filing this Mortgage and of any
financing, amendment, continuation, termination or other statements concerning
the Collateral.

                  (b) The Borrower authorizes the Agent to file a financing
statement covering all personal property of the Borrower in the appropriate
filing office under the UCC.

         Section 4.6 Collateral Protection. If the validity or priority of this
Mortgage or any rights, security interests or other interests created or
evidenced hereby shall be attacked, endangered or questioned or if any legal
proceedings are instituted with respect thereto, the Borrower will give prompt
written notice thereof to the Agent and at the Borrower's own cost and expense
will diligently endeavor to cure any defect that may be developed or claimed,
and will take all necessary and proper steps for the defense of such legal
proceedings, and the Agent (whether or not named as a party to legal proceedings
with respect thereto) is hereby authorized and empowered to take such additional
steps as in its judgment and discretion may be necessary or proper for the
defense of any such legal proceedings or the protection of the validity or
priority of this Mortgage and the rights, security interests and other interests
created or evidenced hereby, and all reasonable expenses so incurred of every
kind and character shall be considered Advances as provided in Section 4.8
("Advances by Agent") hereof, and shall be a part of the Secured Liabilities.

         Section 4.7 Taxation of Mortgage. In the event that any governmental
authority shall impose any taxation of mortgages or the indebtedness they
secure, the Borrower agrees to pay such governmental taxes, assessments or
charges either to the governmental authority or to the Agent, as provided by
law.

         Section 4.8 Advances by Agent. The Borrower authorizes the Agent in the
Agent's discretion to advance any sums necessary for the purpose of paying (i)
insurance premiums, (ii) taxes, forced contributions, service charges, local
assessments and governmental charges, (iii) any Liens or encumbrances affecting
the Collateral (whether superior or subordinate to the Lien of this Mortgage)
not permitted by this Mortgage or the Loan Agreement, (iv) necessary repairs and
maintenance expenses or (v) any other amounts which are covered by

                                       20
<PAGE>

the Loan Agreement or which the Agent deems necessary and appropriate to
preserve the validity and ranking of this Mortgage, to cure any Defaults or to
prevent the occurrence of any Default, or otherwise authorized by this Mortgage
(collectively, the "Advances") of whatever kind; provided, however, that nothing
herein contained shall be construed as making such Advances obligatory upon
Agent, or as making Agent liable for any loss, damage, or injury resulting from
the nonpayment thereof. The Borrower covenants and agrees that within five (5)
days after demand therefor by the Agent, the Borrower will repay the Advances to
the Agent, together with interest thereon at the rate provided in the Loan
Agreement and the Notes from the date incurred. All such Advances (and interest)
shall be included in the Secured Liabilities secured hereby.

                                   ARTICLE 5.

                              DEFAULT AND REMEDIES

         Section 5.1 Events of Default. Any of the following events shall be
considered an "Event of Default" as that term is used herein:

                  (a) Principal and Interest Payments. The Borrower fails to
         make payment (x) when due of any principal or interest installment on
         any Note, and such failure continues unremedied for a period of three
         (3) Business Days after the earlier of (i) notice thereof being given
         by the Agent to the Borrower or (ii) such default otherwise becoming
         known to the president or chief financial officer of the Borrower or
         (y) when due of any mandatory prepayment under Subsection 2.4(b) or
         Subsection 2.4(c) of the Loan Agreement.

                  (b) Loan Agreement. The occurrence of an Event of Default as
         defined in the Loan Agreement.

         Section 5.2 Remedies. (a) Upon the occurrence of any Event of Default,
the Agent may take such action, without notice or demand, as it deems advisable
to protect and enforce its rights against the Borrower and in and to the
Collateral, including, but not limited to, the following actions, each of which
may be pursued concurrently or otherwise, at such time and in such order as the
Agent may determine, in its sole discretion, without impairing or otherwise
affecting the other rights and remedies of the Agent: (i) institute proceedings
for the complete foreclosure of this Mortgage in which case the Collateral or
any part thereof may be sold for cash or upon credit in one or more portions; or
(ii) to the extent permitted and pursuant to the procedures provided by
applicable law, institute proceedings for the partial foreclosure of this
Mortgage for the portion of the Secured Liabilities then due and payable,
subject to the continuing Lien of this Mortgage for the balance of the Secured
Liabilities not then due; or (iii) institute an action, suit or proceeding in
equity for the specific performance of any covenant, condition or agreement
contained in this Mortgage or the Loan Agreement or any Secured Hedge Agreement;
or (iv) recover judgment on the Notes either before, during or after any
proceedings

                                       21
<PAGE>

for the enforcement of this Mortgage; or (v) apply for the appointment of a
trustee, receiver, liquidator or conservator of the Collateral, without regard
for the adequacy of the security for the Secured Liabilities and without regard
for the solvency of the Borrower or of any person, firm or other entity liable
for the payment of the Secured Liabilities; or (vi) pursue such other remedies
as the Agent may have under applicable law.

                  (b) The proceeds or avails of any sale made under or by virtue
of this Article 5, together with any other sums which may be held by the Agent
under this Mortgage, whether under the provisions of this Article 5 or
otherwise, shall be applied to the Secured Liabilities in such manner as the
Agent, in its sole discretion, shall determine.

                  (c) Upon any sale made under or by virtue of this Article 5,
the Agent may bid for and acquire the Collateral or any part thereof and in lieu
of paying cash therefor may make settlement for the purchase price by crediting
upon the Secured Liabilities the net sales price after deducting therefrom the
expenses of the sale and the costs of the action and any other sums which the
Agent is authorized to deduct under this Mortgage.

         Section 5.3 Deposit Accounts. The Agent has required the Borrower to
maintain and use the Deposit Accounts at the Agent. Upon an Event of Default the
Deposit Accounts shall be subject to access and withdrawal by the Agent only.
Payments due and payable on the Notes may be debited from the Deposit Accounts.
All payments (in the form of checks, drafts, cash or otherwise) received by the
Borrower in satisfaction, in whole or in part, of any Proceeds of Runs, Accounts
or General Intangibles (or Proceeds therefrom) of the Borrower shall be
deposited by the Borrower in the Deposit Accounts in accordance with the terms
of the Loan Agreement. The Borrower will deposit for credit to the Deposit
Accounts all such items of payment and remittances within one Business Day after
the receipt thereof, and shall not commingle any such items of payment and
remittances with any of the Borrower's other property. Funds in the Deposit
Accounts are hereby made and shall remain subject to a security interest in
favor of the Agent to secure the Secured Liabilities, and the Agent may apply or
cause to be applied (subject to collection) any or all of the balance from time
to time standing in the Deposit Accounts against any amounts then due and
payable under the Secured Liabilities in such order as determined by the Agent.

         Section 5.4 General Authority. The Borrower hereby irrevocably appoints
the Agent its agent and attorney in fact, with full power of substitution, in
the name of the Borrower or the Agent, for the sole use and benefit of the
Agent, but at the Borrower's expense, to exercise, at any time and from time to
time while an Event of Default has occurred and is continuing, all or any of the
following powers with respect to all or any of the Collateral:

                  (i) to endorse the name of the Borrower upon any check, draft
         or other instrument payable to the Borrower evidencing payment upon any
         Accounts or General Intangible,

                                       22
<PAGE>

                  (ii) to notify postal service authorities to change the
         address for delivery of the assigned payments of Collateral to a
         "lockbox" address designated and controlled by the Agent, and to
         receive, open and dispose of assigned payments of Collateral addressed
         to the Borrower,

                  (iii) to demand, sue for, collect, receive and give
         acquittance for any and all Accounts and other monies due or to become
         due for or as Collateral or by virtue thereof,

                  (iv) to settle, compromise, compound, prosecute or defend any
         action or proceeding with respect to any of the Collateral, and

                  (v) to extend the time of payment of any or all of the
         Collateral and to make any allowance and other adjustments with
         reference thereto.

The aforesaid mandate and power of attorney, being coupled with an interest, is
irrevocable so long as any of the Secured Liabilities remain outstanding.

         Section 5.5 Accounts and Contracts. While an Event of Default has
occurred and is continuing, (i) the Borrower will make no material change to the
terms of any Account or Contract without the prior written permission of the
Agent, and (ii) the Borrower upon request of the Agent will promptly notify (and
the Borrower hereby authorizes the Agent so to notify) each account debtor in
respect of any Account or General Intangible that such Collateral has been
assigned to the Agent hereunder, and that any payments due or to become due in
respect of such Collateral are to be made directly to the Agent or its designee.

         Section 5.6 Sale and Foreclosure. Upon the occurrence of an Event of
Default, Trustee is authorized and empowered and it shall be Trustee's special
duty at the request of Agent to sell the Collateral, or any part thereof, as an
entirety or in parcels as Agent may elect, at such place or places and otherwise
in the manner and upon such notice as may be required by law or, in the absence
of any such requirement, as Trustee may deem appropriate. If Trustee shall have
given notice of sale hereunder, any successor or substitute Trustee thereafter
appointed may complete the sale and the conveyance of the property pursuant
thereto as if such notice had been given by the successor or substitute Trustee
conducting the sale. Cumulative of the foregoing and the other provisions of
this Section 5.6:

                  (a) As to any portion of the Collateral located in the State
         of Texas (or within the offshore area over which the United States of
         America asserts jurisdiction and to which the laws of such state are
         applicable with respect to this Mortgage and/or the liens, grants in
         trust or security interests created hereby), such sales of all or any
         part of such Collateral shall be conducted at the courthouse of any
         county (whether or not the counties in which such Collateral located
         are contiguous) in the State of Texas in which any part of such
         Collateral is situated or which lies shoreward of any Collateral (i.e.,
         to the extent

                                       23
<PAGE>

         a particular part of the Collateral lies offshore within the reasonable
         projected seaward extension of the relevant county boundary), at public
         venue to the highest bidder for cash between the hours of ten o'clock
         a.m. and four o'clock p.m. on the first Tuesday in any month or at such
         other place, time and date as provided by the statutes or laws of the
         State of Texas then in force governing sales of real estate under
         powers conferred by deed of trust, after having given notice of such
         sale in accordance with such statutes.

                  (b) A POWER OF SALE HAS BEEN GRANTED IN THIS MORTGAGE. A POWER
         OF SALE MAY ALLOW TRUSTEE TO TAKE THE COLLATERAL AND SELL THEM WITHOUT
         GOING TO COURT IN A FORECLOSURE ACTION UPON DEFAULT BY BORROWER UNDER
         THIS MORTGAGE.

         Section 5.7 Remedies Under the UCC and Otherwise Respecting the
Collateral. Upon the occurrence of an Event of Default, Agent may exercise its
rights of enforcement with respect to the Collateral under the UCC or under any
other law, statute, order, rule or regulation, in force in any state, to the
extent the same is applicable. Cumulative of the foregoing and the other
provisions of this Section 5.7:

                  (i) Agent may enter upon the Mortgaged Properties or otherwise
         upon Borrower's premises to take possession of, assemble and collect
         the Collateral or to render it unusable; and

                  (ii) Agent may require Borrower to assemble the Collateral and
         make it available at a place Agent designates which is mutually
         convenient to allow Agent to take possession or dispose of the
         Collateral; and

                  (iii) written notice mailed to Borrower as provided herein at
         least five (5) days prior to the date of public sale of the Collateral
         or prior to the date after which private sale of the Collateral will be
         made shall constitute reasonable notice; and

                  (iv) in the event of a foreclosure of the liens and/or
         security interests evidenced hereby, the Collateral, or any part
         thereof, and the Mortgaged Properties, or any part thereof may, at the
         option of Agent, be sold, as a whole or in parts, together or
         separately (including, without limitation, where a portion of the
         Mortgaged Properties is sold by Trustee or by Agent, the Collateral
         related thereto may be sold in connection therewith); and

                  (v) the expenses of sale provided for in Section 5.9 shall
         include the reasonable expenses of retaking the Collateral, or any part
         thereof, holding the same and preparing the same for sale or other
         disposition; and

                                       24
<PAGE>

                  (vi) should, under this subsection, the Collateral be disposed
         of other than by sale, any proceeds of such disposition shall be
         treated as if the same were sales proceeds.

         Section 5.8 Set-Off. Upon the occurrence of any Event of Default, the
Agent shall have the right to set-off any funds of the Borrower in the
possession of the Agent against any amounts then due by the Borrower to the
Agent pursuant to the Mortgage.

         Section 5.9 Expenses. The Borrower will pay all reasonable expenses,
including but not limited to reasonable attorneys' fees, incurred in connection
with the full protection and preservation of, and foreclosure, collection or
other realization of or on, the Collateral or this Mortgage, or in connection
with the enforcement of any of the Borrower's obligations or the Agent's rights
and remedies set forth herein, whether or not suit or any foreclosure
proceedings are filed. All insurance expenses and all expenses of protecting,
storing, warehousing, appraising, preparing for sale, handling, maintaining and
shipping the Collateral, any and all excise, property, sales, and use taxes
imposed by any federal, state or local authority on any of the Collateral, all
expenses in respect of periodic appraisals and inspections of the Collateral to
the extent the same may be requested from time to time, and all expenses in
respect of the sale or other disposition thereof shall be borne and paid by the
Borrower. All such expenses shall be treated as Advances as provided in Section
4.8 ("Advances by Agent") hereof and thus included in the Secured Liabilities
secured hereby.

         Section 5.10 General Sales Provisions. To the extent permitted by
applicable law, the sale by Trustee or Agent hereunder of less than the whole of
the Collateral shall not exhaust the powers of sale herein granted or the right
to judicial foreclosure, and successive sale or sales may be made until the
whole of the Collateral shall be sold, and, if the proceeds of such sale of less
than the whole of the Collateral shall be less than the aggregate of the Secured
Liabilities secured hereby and the expense of conducting such sale, this
Mortgage and the liens and security interests hereof shall remain in full force
and effect as to the unsold portion of the Collateral just as though no sale had
been made; provided, however, that Borrower shall never have any right to
require the sale of less than the whole of the Collateral. In the event any sale
hereunder is not completed or is defective in the opinion of Agent, such sale
shall not exhaust the powers of sale hereunder or the right to judicial
foreclosure, and Agent shall have the right to cause a subsequent sale or sales
to be made. Any sale may be adjourned by announcement at the time and place
appointed for such sale without further notice except as may be required by law.
The Trustee or his successor or substitute may appoint or delegate any one or
more persons as agent to perform any act or acts necessary or incident to any
sale held by it (including, without limitation, the posting of notices and the
conduct of sale), and such appointment need not be in writing or recorded. Any
and all statements of fact or other recitals made in any deed or deeds, or other
instruments of transfer, given in connection with a sale as to nonpayment of the
Secured Liabilities or as to the occurrence of any Default, or as to Agent's
having declared all or portions of Secured Liabilities to be due and payable, or
as to the request to sell, or as to notice of time, place and terms of sale and
the properties to be sold having been duly given, or, with respect to

                                       25
<PAGE>

any sale by the Trustee, or any successor or substitute trustee, as to the
refusal, failure or inability to act of Trustee or any substitute or successor
trustee or the appointment of any substitute or successor trustee, or as to any
other act or thing having been duly done, shall be taken as prima facie evidence
of the truth of the facts so stated and recited. With respect to any sale held
in foreclosure of the liens and/or security interests covered hereby, it shall
not be necessary for the Trustee, Agent, any public officer acting under
execution or order of the court or any other party to have physically present or
constructively in his, her or its possession, either at the time of or prior to
such sale, the Collateral or any part thereof.

         Section 5.11 Effective as Mortgage. As to the Mortgaged Properties,
this instrument shall be effective as a mortgage as well as a deed of trust, and
upon the occurrence of an Event of Default may be foreclosed as to the Mortgaged
Properties, or any portion thereof, in any manner permitted by applicable law,
and any foreclosure suit may be brought by Trustee or by Agent. To the extent,
if any, required to cause this instrument to be so effective as a mortgage as
well as a deed of trust, Borrower hereby mortgages the Mortgaged Properties to
Agent. In the event a foreclosure hereunder as to the Mortgaged Properties, or
any part thereof, shall be commenced by Trustee, or his substitute or successor,
Agent may at any time before the sale of such properties direct Trustee to
abandon the sale, and may then institute suit for the foreclosure of this
Mortgage as to such properties. It is agreed that if Agent should institute a
suit for the foreclosure of this Mortgage, Agent may at any time before the
entry of a final judgment in said suit dismiss the same, and require Trustee, or
his or her substitute or successor, to sell the Mortgaged Properties, or any
part thereof, in accordance with the provisions of this Mortgage.

         Section 5.12 Receiver. In addition to all other remedies herein
provided for, Borrower agrees that, upon the occurrence of an Event of Default,
Agent shall as a matter of right be entitled to the appointment of a receiver or
receivers for all or any part of the Collateral, whether such receivership be
incident to a proposed sale (or sales) of such property or otherwise, and
without regard to the value of the Collateral or the solvency of any person or
persons liable for the payment of the Secured Liabilities secured hereby, and
Borrower does hereby consent to the appointment of such receiver or receivers,
waives any and all defenses to such appointment, and agrees not to oppose any
application therefor by Agent, and agrees that such appointment shall in no
manner impair, prejudice or otherwise affect the rights of Agent under Section
2.3 ("Assignment") hereof. Borrower expressly waives notice of a hearing for
appointment of a receiver and the necessity for bond or an accounting by the
receiver. Nothing herein is to be construed to deprive Agent of any other right,
remedy or privilege it may now or hereafter have under the law to have a
receiver appointed.

         Section 5.13 Foreclosure as to Matured Debt. Upon the occurrence of an
Event of Default, Agent shall have the right to proceed with foreclosure of the
liens and/or security interests evidenced hereby without declaring the entire
Secured Liabilities due, and in such event, any such foreclosure sale may be
made subject to the unmatured part of the Secured Liabilities and shall not in
any manner affect the unmatured part of the Secured Liabilities, but as

                                       26
<PAGE>

to such unmatured part, this Mortgage shall remain in full force and effect just
as though no sale had been made. Several sales may be made hereunder without
exhausting the right of sale for any unmatured part of the Secured Liabilities.

         Section 5.14 Remedies Cumulative. All remedies herein provided for are
cumulative of each other and of all other remedies existing at law or in equity
and are cumulative of any and all other remedies provided for in the Loan
Agreement or any other agreement, and Trustee and Agent shall, in addition to
the remedies herein provided, be entitled to avail themselves of all such other
remedies as may now or hereafter exist at law or in equity for the collection of
the Secured Liabilities and the enforcement of the covenants herein and the
foreclosure of the liens and/or security interests evidenced hereby, and the
resort to any remedy provided for hereunder or under any such Loan Agreement or
any other agreement or provided for by law shall not prevent the concurrent or
subsequent employment of any other appropriate remedy or remedies.

         Section 5.15 Agent's Discretion as to Security. Agent may resort to any
security given by this Mortgage or to any other security now existing or
hereafter given to secure the payment of the Secured Liabilities, in whole or in
part, and in such portions and in such order as may seem best to Agent in its
sole and uncontrolled discretion, and any such action shall not in any way be
considered as a waiver of any of the rights, benefits, liens or security
interests evidenced by this Mortgage.

         Section 5.16 Borrower's Waiver of Certain Rights. To the full extent
Borrower may do so, Borrower agrees that Borrower will not at any time insist
upon, plead, claim or take the benefit or advantage of any law now or hereafter
in force providing for any appraisement, valuation, stay, extension or
redemption, and Borrower, for Borrower, Borrower's heirs, devisees,
representatives, successors and assigns, and for any and all persons ever
claiming any interest in the Collateral, to the extent permitted by applicable
law, hereby waives and releases all rights of appraisement, valuation, stay of
execution, redemption, notice of intention to mature or declare due the whole of
the Secured Liabilities, notice of election to mature or declare due the whole
of the Secured Liabilities and all rights to a marshaling of assets of Borrower,
including the Collateral, or to a sale in inverse order of alienation in the
event of foreclosure of the liens and/or security interests hereby created.
Borrower shall not have or assert any right under any statute or rule of law
pertaining to the marshaling of assets, sale in inverse order of alienation, the
exemption of homestead, the administration of estates of decedents, or other
matters whatever to defeat, reduce or affect the right of Trustee and/or Agent
under the terms of this Mortgage to a sale of the Collateral for the collection
of the Secured Liabilities without any prior or different resort for collection,
or the right of Agent under the terms of this Mortgage to the payment of the
Secured Liabilities out of the proceeds of sale of the Collateral in preference
to every other claimant whatever. If any law referred to in this section and now
in force, of which Borrower or Borrower's heirs, devisees, representatives,
successors or assigns or any other persons claiming any interest in the
Mortgaged Properties or any other Collateral might

                                       27
<PAGE>

take advantage despite this section, shall hereafter be repealed or cease to be
in force, such law shall not thereafter be deemed to preclude the application of
this section.

         Section 5.17 Acts Not Constituting Waiver. Agent may waive or remedy
any Event of Default without waiving or remedying any other prior or subsequent
Event of Default and Agent may remedy any Event of Default without waiving the
default remedied. Neither failure by Trustee or Agent to exercise, nor delay by
Trustee or Agent in exercising, any right, power or remedy upon any default
shall be construed as a waiver of such default or as a waiver of the right to
exercise any such right, power or remedy at a later date. No single or partial
exercise by Trustee or Agent of any right, power or remedy hereunder shall
exhaust the same or shall preclude any other or further exercise thereof, and
every such right, power or remedy hereunder may be exercised at any time and
from time to time. No modification or waiver of any provision hereof nor consent
to any departure by Borrower therefrom shall in any event be effective unless
the same shall be in writing and signed by Agent and then such waiver or consent
shall be effective only in the specific instances, for the purpose for which
given and to the extent therein specified. No notice to nor demand on Borrower
in any case shall of itself entitle Borrower to any other or further notice or
demand in similar or other circumstances. Acceptance by Agent of any payment in
an amount less than the amount then due on any Secured Liabilities shall be
deemed an acceptance on account only and shall not in any way excuse the
existence of a Default hereunder.

         Section 5.18 Substitute Trustee. The Trustee may resign by an
instrument in writing addressed to Agent, or Trustee may be removed at any time
with or without cause by an instrument in writing executed by Agent. In case of
the death, resignation, removal, or disqualification of Trustee, or if for any
reason Agent shall deem it desirable to appoint a substitute or successor
trustee to act instead of the herein named trustee or any substitute or
successor trustee, then Agent shall have the right and is hereby authorized and
empowered to appoint a successor trustee, or a substitute trustee, without other
formality than appointment and designation in writing executed by Agent and the
authority hereby conferred shall extend to the appointment of other successor
and substitute trustees successively until the Secured Liabilities secured
hereby have been paid in full, or until the Collateral is sold hereunder. In the
event the Secured Liabilities are owned by more than one person or entity, the
Required Banks (as defined in the Loan Agreement) shall have the right and
authority to make the appointment of a successor or substitute trustee as
provided for in the preceding sentence or to remove Trustee as provided in the
first sentence of this section. Such appointment and designation by Agent, or by
the Required Banks (as defined in the Loan Agreement), shall be full evidence of
the right and authority to make the same and of all facts therein recited. If
Agent is a corporation or association and such appointment is executed in its
behalf by an officer of such corporation or association, such appointment shall
be conclusively presumed to be executed with authority and shall be valid and
sufficient without proof of any action by the board of directors or any superior
officer of the corporation or association. Agent may act through an agent or
attorney-in-fact in

                                       28
<PAGE>

substituting trustees. Upon the making of any such appointment and designation,
all of the estate and title of Trustee in the Mortgaged Properties shall vest in
the named successor or substitute Trustee and he or she shall thereupon succeed
to, and shall hold, possess and execute, all the rights, powers, privileges,
immunities and duties herein conferred upon Trustee; but nevertheless, upon the
written request of Agent or of the successor or substitute Trustee, the Trustee
ceasing to act shall execute and deliver an instrument transferring to such
successor or substitute Trustee all of the estate and title in the Mortgaged
Properties of the Trustee so ceasing to act, together with all the rights,
powers, privileges, immunities and duties herein conferred upon the Trustee, and
shall duly assign, transfer and deliver any of the properties and moneys held by
said Trustee hereunder to said successor or substitute Trustee. All references
herein to Trustee shall be deemed to refer to Trustee (including any successor
or substitute appointed and designated as herein provided) from time to time
acting hereunder.

         SECTION 5.19 NO LIABILITY FOR TRUSTEE. THE TRUSTEE SHALL NOT BE LIABLE
FOR ANY ERROR OF JUDGMENT OR ACT DONE BY TRUSTEE IN GOOD FAITH, OR BE OTHERWISE
RESPONSIBLE OR ACCOUNTABLE UNDER ANY CIRCUMSTANCES WHATSOEVER (INCLUDING,
WITHOUT LIMITATION, THE TRUSTEE'S STRICT LIABILITY OR NEGLIGENCE), EXCEPT FOR
TRUSTEE'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. The Trustee shall have the
right to rely on any instrument, document or signature authorizing or supporting
any action taken or proposed to be taken by him or her hereunder, believed by
him or her in good faith to be genuine. All moneys received by Trustee shall,
until used or applied as herein provided, be held in trust for the purposes for
which they were received, but need not be segregated in any manner from any
other moneys (except to the extent required by law), and Trustee shall be under
no liability for interest on any moneys received by him hereunder. Borrower
hereby ratifies and confirms any and all acts which the herein named Trustee or
his or her successor or successors, substitute or substitutes, shall do lawfully
by virtue hereof. Borrower will reimburse Trustee for, and indemnify and save
Trustee harmless against, any and all liability and expenses (including
attorneys fees) which may be incurred by him in the performance of his duties.
Borrower will indemnify and hold harmless Trustee from and against (and will
reimburse Trustee for) all expenditures, including reasonable attorneys' fees
and expenses, incurred or expended in connection with all claims, demands,
liabilities, losses, damages (including without limitation consequential
damages), causes of action, judgments, penalties, costs and expenses (including
without limitation reasonable attorneys' fees and expenses) which may be imposed
upon, asserted against or incurred or paid by Trustee (or by Agent on behalf of
Trustee) on account of, in connection with, or arising out of (A) any bodily
injury or death or property damage occurring in or upon or in the vicinity of
the Mortgaged Properties or any other Collateral through any cause whatsoever,
(B) any act performed or omitted to be performed hereunder or the breach of any
representation or warranty herein, (C) the exercise of any rights and remedies
hereunder, (D) any transaction, act, omission, event or circumstance arising out
of or in any way connected with the Mortgaged Properties or any other Collateral
or with this Mortgage, (E) any violation on

                                       29
<PAGE>

or prior to the date this Mortgage is released of record of any applicable
environmental law rule order or regulation, (F) any act, omission, event,
condition, or circumstance existing or occurring on or prior to the date this
Mortgage is released of record (including without limitation the presence on the
Mortgaged Properties or any other Collateral or release from the Mortgaged
Properties or any other Collateral of hazardous substances, solid wastes or
pollutants of any kind disposed of or otherwise released) resulting from or in
connection with the ownership, construction, occupancy, operation, use and/or
maintenance of the Mortgaged Properties or any other Collateral, regardless of
whether the act, omission, event or circumstance constituted a violation of any
applicable environmental law, rule, order or regulation at the time of its
existence or occurrence, and (G) any and all claims or proceedings (whether
brought by private party or governmental agencies) for bodily injury, property
damage, abatement or remediation, environmental damage or impairment or any
other injury or damage resulting from or relating to any hazardous or toxic
substance, solid waste or contaminated material or pollutant or any kind located
upon or migrating into, from or through the Mortgaged Properties or any other
Collateral (whether or not the release of such materials was caused by Borrower,
a tenant or subtenant or a prior owner or tenant or subtenant on the Mortgaged
Properties or any other item of Collateral, and whether or not the alleged
liability is attributable to the handling, storage, generation, transportation,
removal or disposal of such substance, waste, pollutant or contaminated material
or the mere presence of such substance, waste, pollutant or material on the
Mortgaged Properties or any other item of Collateral), which the Trustee may
have liability with respect to due to the making of the loan or loans evidenced
by the Notes, the granting of this Mortgage, the exercise of any of his or her
rights under this Mortgage, or otherwise. WITHOUT LIMITATION, IT IS THE
INTENTION OF BORROWER AND BORROWER AGREES THAT THE FOREGOING INDEMNITIES SHALL
APPLY TO EACH INDEMNIFIED PARTY WITH RESPECT TO CLAIMS, DEMANDS, LIABILITIES,
LOSSES, DAMAGES, CAUSES OF ACTION, JUDGMENTS, PENALTIES, COSTS AND EXPENSES
(INCLUDING WITHOUT LIMITATION REASONABLE ATTORNEYS' FEES) WHICH IN WHOLE OR IN
PART ARE CAUSED BY OR ARISE OUT OF THE NEGLIGENCE OF SUCH (AND/OR ANY OTHER)
INDEMNIFIED PARTY. However, such indemnities shall not apply to any particular
indemnified party (but shall apply to the other indemnified parties) to the
extent the subject of the indemnification is caused by or arises out of the
gross negligence or willful misconduct of such particular indemnified party. The
foregoing indemnities shall not terminate upon the release, foreclosure or other
termination of this Mortgage but will survive the foreclosure of this Mortgage
or conveyance in lieu of foreclosure, and the repayment of the Secured
Liabilities and the discharge and release of this Mortgage and the other
documents evidencing and/or securing the Secured Liabilities. Any amount to be
paid hereunder by Borrower to Trustee shall be a demand obligation owing by
Borrower to Trustee (which obligation the Borrower expressly promises to pay),
and shall bear interest from the date expended or incurred until paid at the
rate described in Section 4.8 (Advances by Agent) hereof, and shall be a part of
the Secured Liabilities.

                                       30
<PAGE>

         Section 5.20 Limitation on Duty of Agent. Beyond the exercise of
reasonable care in the custody thereof, the Agent shall have no duty as to any
Collateral in its possession or control or in the possession or control of any
agent or bailee or any income thereon. The Agent shall be deemed to have
exercised reasonable care in the custody of the Collateral in its possession if
the Collateral is accorded treatment substantially equal to that which it
accords its own property, and shall not be liable or responsible for any loss or
damage to any of the Collateral, or for any diminution in the value thereof, by
reason of the act or omission of any warehouseman, carrier, forwarding agency,
consignee or other agent or bailee selected by the Agent in good faith.

         Section 5.21 Appointment of Agent. At any time or times, in order to
comply with any legal requirement in any jurisdiction, the Agent may appoint a
bank or trust company or one or more other Persons with such power and authority
as may be necessary for the effectual operation of the provisions hereof and may
be specified in the instrument of appointment.

                                   ARTICLE 6.

                                  MISCELLANEOUS

         Section 6.1 Notices. Any notice or demand which, by provision of this
Mortgage, is required or permitted to be given or served to the Borrower, the
Agent and the Trustee shall be deemed to have been sufficiently given and served
for all purposes if made in accordance with the Loan Agreement to the following
addresses:

         If to Borrower:             GMX Resources Inc.
                                     9400 North Broadway, Suite 600
                                     Oklahoma City, Oklahoma 73114

                                     Attention: Chief Financial Officer

         If to Agent:                Capital One, National Association
                                     5718 Westheimer, 6th Floor
                                     Houston, Texas  77057

                                     Attention:  David Reid

                                     Facsimile Number: (713) 435-5106

         If to Trustee:              Mr. David R. Reid
                                     Capital One, National Association
                                     5718 Westheimer, 6th Floor
                                     Houston, Texas  77057

                                       31
<PAGE>

Notwithstanding the foregoing, or anything else in the Loan Agreement which may
appear to the contrary, any notice given in connection with a foreclosure of the
liens and/or security interests created hereunder, or otherwise in connection
with the exercise by Agent or Trustee of their respective rights hereunder,
which is given in a manner permitted by applicable law shall constitute proper
notice; without limitation of the foregoing, notice given in a form required or
permitted by statute or other law shall (as to the portion of the Collateral to
which such statute or other law is applicable) constitute proper notice.

         Section 6.2 Amendment. Neither this Mortgage nor any provisions hereof
may be changed, waived, discharged or terminated orally or in any manner other
than by an instrument in writing signed by the party against whom enforcement of
the change, waiver, discharge or termination is sought.

         Section 6.3 Invalidity. In the event that any one or more of the
provisions contained in this Mortgage shall, for any reason, be held invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this Mortgage.

         Section 6.4 Waivers. No course of dealing on the part of the Agent, its
officers, employees, consultants or agents, nor any failure or delay by the
Agent or the Trustee with respect to exercising any of its respective rights,
powers or privileges under this Mortgage shall operate as a waiver thereof.

         Section 6.5 Cumulative Rights. The rights and remedies of the Agent
under this Mortgage and the Collateral Documents shall be cumulative, and the
exercise or partial exercise of any such right or remedy shall not preclude the
exercise of any other right or remedy.

         Section 6.6 Titles of Articles, Sections and Subsections. All titles or
headings to articles, sections, subsections or other divisions of this Mortgage
or the exhibits hereto are only for the convenience of the parties and shall not
be construed to have any effect or meaning with respect to the other content of
such articles, sections, subsections or other divisions, such other content
being controlling as to the agreement between the parties hereto.

         Section 6.7 Singular and Plural. Words used herein in the singular,
where the context so permits, shall be deemed to include the plural and vice
versa. The definitions of words in the singular herein shall apply to such words
when used in the plural where the context so permits and vice versa.

         Section 6.8 Termination. Upon full and final payment and performance of
the Secured Liabilities and the termination of the Loan Agreement and the
Secured Hedge

                                       32
<PAGE>

Agreements, such that no Secured Liabilities exist and no Secured Party is bound
to permit any Secured Liability to be incurred, the Agent shall pay to the
Borrower all amounts then remaining in the possession of the Agent from
collections on or proceeds of the Collateral and, upon written request of the
Borrower, the Agent shall execute and deliver to the Borrower at the Borrower's
expense such releases and termination statements as the Borrower may reasonably
request to evidence that the Mortgage no longer has any force and effect.

         Section 6.9 Successors and Assigns. (a) All covenants and agreements
contained by or on behalf of the Borrower in this Mortgage shall bind its
successors and assigns and shall inure to the benefit of the Trustee and the
Agent and the other Secured Parties and their respective substitutes, successors
and assigns; all references herein to Borrower, Agent and Trustee shall be
deemed to include and cover such substitutes, successors and assigns, as
applicable.

                  (b) This Mortgage is for the benefit of the Trustee and the
Agent and the other Secured Parties and for such other Person or Persons as may
from time to time become or be the holders of any of the Secured Liabilities.
The rights, interests and remedies of Secured Parties under this Mortgage shall
be transferrable and negotiable, with the same force and effect and to the same
extent as the Secured Liabilities may be transferrable, it being understood
that, upon the transfer or assignment by any Secured Party of any of the Secured
Liabilities, the legal holder of such Secured Liabilities shall have all of the
rights granted to a Secured Party under this Mortgage. The Borrower specifically
agrees that upon any transfer of all or any portion of the Secured Liabilities,
this Mortgage shall secure with retroactive rank the then existing Secured
Liabilities of the Borrower to the transferee and any and all Secured
Liabilities to such transferee thereafter arising.

                  (c) If less than all of the Secured Liabilities secured by
this Mortgage is transferred by a Secured Party, each part of such Secured
Liabilities shall share pro-rata in the security of this Mortgage, and said
Secured Party or subsequent transferor shall not be deemed to have warranted or
agreed to have subordinated any remaining or future Secured Liabilities to that
portion of such Secured Liabilities transferred.

                  (d) The Borrower hereby recognizes and agrees that the Banks
may, from time to time, one or more times, transfer all or any portion of the
Secured Liabilities to one or more third parties. Such transfers may include,
but are not limited to, sales of participation interests in such Secured
Liabilities in favor of one or more third party lenders. Borrower specifically
agrees that upon any transfer of all or any portion of the Secured Liabilities,
the Collateral shall secure any and all of the Secured Liabilities in favor of
such a transferee then existing and thereafter arising, that such transfer shall
not affect the priority and ranking thereof, and that the Collateral shall
secure with retroactive rank the then existing Secured Liabilities of the
Borrower to the transferee and any and all Secured Liabilities thereafter
arising. Upon the appointment of a successor Agent under the Loan Agreement, the
Agent may transfer and deliver

                                       33
<PAGE>

the Collateral to such successor Agent and after any such transfer has taken
place, the Agent shall be fully discharged from any and all future liability and
responsibility to the Borrower with respect to such Collateral, and the
transferee thereafter shall be vested with all the powers, rights and duties
previously vested in Agent with respect to such Collateral.

         Section 6.10 Counterparts. This Mortgage may be executed in several
counterparts, all of which are identical, except that to facilitate recordation,
certain counterparts hereof may include only that portion of Exhibit A which
contains descriptions of the properties located in (or otherwise subject to the
requirements and/or protections of the recording or filing acts or regulations
of) the recording jurisdiction in which the particular counterpart is to be
recorded, and other portions of Exhibit A shall be included in such counterparts
by reference only. All of such counterparts together shall constitute one and
the same instrument.

         Section 6.11 CHOICE OF LAW. WITHOUT REGARD TO PRINCIPLES OF CONFLICTS
OF LAW, THIS MORTGAGE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF TEXAS APPLICABLE TO CONTRACTS MADE AND TO
BE PERFORMED ENTIRELY WITHIN SUCH STATE AND THE LAWS OF THE UNITED STATES OF
AMERICA, EXCEPT THAT, TO THE EXTENT THAT THE LAW OF A STATE IN WHICH A PORTION
OF THE COLLATERAL IS LOCATED (OR WHICH IS OTHERWISE APPLICABLE TO A PORTION OF
THE COLLATERAL) NECESSARILY OR, IN THE SOLE DISCRETION OF LENDER, APPROPRIATELY
GOVERNS WITH RESPECT TO PROCEDURAL AND SUBSTANTIVE MATTERS RELATING TO THE
CREATION, PERFECTION AND ENFORCEMENT OF THE LIENS, SECURITY INTERESTS AND OTHER
RIGHTS AND REMEDIES OF THE TRUSTEE OR THE LENDER GRANTED HEREIN, THE LAW OF SUCH
STATE SHALL APPLY AS TO THAT PORTION OF THE COLLATERAL LOCATED IN (OR OTHERWISE
SUBJECT TO THE LAWS OF) SUCH STATE.

         Section 6.12 NOTICE OF FINAL AGREEMENT. THIS MORTGAGE, THE LOAN
AGREEMENT, THE NOTES AND THE OTHER DOCUMENTS SECURING THE NOTES REPRESENT THE
FINAL AGREEMENT BETWEEN THE PARTIES HERETO AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
ANY PRIOR ORAL AGREEMENTS OR DISCUSSIONS BETWEEN THE PARTIES ARE HEREBY
SUPERSEDED BY AND MERGED INTO THIS MORTGAGE AND SUCH OTHER DOCUMENTS. THERE ARE
NO ORAL AGREEMENTS BETWEEN THE PARTIES. THE PROVISIONS HEREOF AND SUCH OTHER
DOCUMENTS MAY BE AMENDED OR WAIVED ONLY BY AN INSTRUMENT IN WRITING SIGNED BY
BORROWER AND LENDER.

         Section 6.13 Novation. All of the liens and privileges and priorities
existing under the Original Mortgage with respect to the Mortgaged Property are
hereby renewed,

                                       34
<PAGE>

extended and carried forward, and nothing contained herein shall be construed
(a) as a novation of the Original Mortgage or the Secured Liabilities, or (b)
the release, cancel, terminate or otherwise impair the status or priority of the
lien and security interest created under the Original Mortgage. As amended and
restated by this Mortgage, the Original Mortgage in all respects ratified and
confirmed and all of the terms, provisions and conditions thereof as restated by
this Mortgage shall be and remain in full force and effect.

         Section 6.14 Loan Agreement. The provisions of Section 3.4 of the Loan
Agreement pertaining to "Shared Collateral" (as defined therein) shall apply to
this Agreement and the Collateral hereunder. Without limiting the generality of
the foregoing, the Agent shall be required to act only at the direction of the
Required Banks (as defined in the Loan Agreement) or such other vote of the
Banks as required by the Loan Agreement, and not at the direction of the Secured
Hedge Providers.

                 EXECUTED on this 7 day of June, 2006.

                 SECTIONS 2.9 AND 5.19 OF THIS INSTRUMENT CONTAINS AN INDEMNITY.

                                     GMX RESOURCES INC.

                                     By: /s/ Ken L. Kenworthy, Sr.
                                        ---------------------------------------
                                          Name:  Ken L. Kenworthy, Sr.
                                          Title: Executive Vice President & CFO

STATE OF OKLAHOMA     ss.
                      ss.
COUNTY OF  OKLAHOMA   ss.

         The foregoing instrument was acknowledged before me on this day of
June, 2006, by Ken L. Kenworthy, Sr., as Executive Vice President & CFO of GMX
Resources Inc., an Oklahoma corporation, on behalf of said corporation.

[SEAL]       /s/ Amber Croisant
            ----------------------------------
             Notary Public, State of Oklahoma

My Commission Expires:   02/06/10
                      --------------

                                       35
<PAGE>

                                     TRUSTEE

                                     By: ___________________________________
                                         Name:  David R. Reid

STATE OF TEXAS     ss.
                   ss.
COUNTY OF HARRIS   ss.

         The foregoing instrument was acknowledged before me on this ________
day of June, 2006, by David R. Reid, as Trustee.

[SEAL]     ___________________________________

           Notary Public, State of Texas

                                       My Commission Expires: ________________

                                       36
<PAGE>

                                       CAPITAL ONE, NATIONAL ASSOCIATION

                                       By: ____________________________________
                                            Name:  Brian Kerrigan
                                            Title: Vice President

STATE OF TEXAS    ss.
                  ss.
COUNTY OF HARRIS  ss.

         The foregoing instrument was acknowledged before me on this day of
June, 2006, by Brian Kerrigan, as Vice President of Capital One, National
Association, a national banking association, on behalf of said association.

[SEAL]       ___________________________________
              Notary Public, State of Texas

My Commission Expires: __________________

                                       37
<PAGE>

                                    EXHIBIT 1

                            Introduction to Exhibit A
                            -------------------------

                  The Borrower hereby agrees and affirms that this Introduction
to Exhibit A is an amplification and explanation of the terminology, format and
information contained in Exhibit A and that this instrument shall be construed
as a whole with reference to the entirety of its provisions (including all
Exhibits).

                  1. This instrument covers the Borrower's entire interest in
each of the mineral servitudes or fees, mineral leases, mineral royalties and
other mineral rights described in Exhibit A, as now owned or as hereafter
acquired. The inclusion of the Borrower's "net revenue interests", "working
interests" and undivided leasehold interests, by the listing of percentage,
decimal or fractional numbers or otherwise, as well as the inclusion of depth
limitations, spacing unit designations and agreements, well names and well
arabic numbers, are in some instances for purposes of certain representations of
the Borrower contained in this instrument and are generally for descriptive
purposes. The inclusion (or the inaccuracy thereof) of this information is not
in any way a limitation or restriction on the interest of the Borrower being
subjected to the lien and encumbrance of this instrument. All right, title and
interest of the Borrower in the properties described herein are subject to this
Mortgage, regardless of the presence of any units or wells (existing or future)
not described herein. In the event that the Borrower acquires additional
undivided interests in some or all of such mineral rights, this Mortgage shall
automatically encumber such additions or increases to the Borrower's interest in
such mineral rights without need of further act or document.

                  2. The leases listed below each well or group of wells relate
to one or more of such listed wells. This instrument is intended to cover the
entire interest of the Borrower in any lease described in Exhibit A, including
(without limitation) even if a lease is listed under one set of wells but
erroneously is not listed under another set of wells. Reference is made to the
land descriptions contained in the documents of title recorded as described in
Exhibit A.

                  3. References in Exhibit A to instruments on file in the
public records are made for all purposes. Unless provided otherwise, all
recording references in Exhibit A are to the official real property records of
the county or counties in which (or offshore of which) the mortgaged property is
located and in which records such documents are or in the past have been
customarily recorded.

                  4. Each reference to a lease or a contract in Exhibit A shall
be deemed a reference to said lease or contract as said lease or contract may
have been amended or ratified by all amendments or ratifications heretofore
executed, whether or not referred to herein.

                  5. A statement herein that a certain interest described herein
is subject to the terms of certain described or referred to agreements,
instruments or other matters shall not operate to subject such interest to any
such agreement, instrument or other matter except to the extent that such
agreement, instrument or matter is otherwise valid and presently subsisting nor
shall such statement be deemed to constitute a recognition by the parties hereto
that any such agreement, instrument or other matter is valid and presently
subsisting or binding against the Agent.

<PAGE>

                                   EXHIBIT "A"

Attached to and made a part of that certain Deed of Trust, Mortgage, Assignment,
Security Agreement, Fixture Filing and Financing Statement by and between GMX
RESOURCES INC., as Grantor, and Capital One, National Association, as Grantee,
dated June 7, 2006
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
HARRISON COUNTY, TEXAS

                    WELL NAME                                WI                             NRI          LOCATION
DOWNS BALOUS GU #1                                        1.0000000                      0.8378965       M.S. Ussery Survey A-722
F GREEN EST #1T TA                                        1.0000000                      0.6435084       M.S. Ussery Survey A-722
F. GREEN #2L                                              1.0000000                      0.8325188       M.S. Ussery Survey A-722
F. GREEN #2U                                              1.0000000                      0.8325188       M.S. Ussery Survey A-722
F. GREEN #3L TA                                           1.0000000                      0.8325188       M.S. Ussery Survey A-722
F. GREEN #3U TA                                           1.0000000                      0.8325188       M.S. Ussery Survey A-722

LESSOR                                              LESSEE                               LSE DATE        BOOK/PAGE
Wendell Downs                                       Expedition Natural Resources Inc.    11/15/99        2065/15
Julius Davis                                        Expedition Natural Resources Inc.    11/24/99        2030/204
Timothy G. Washington                               Expedition Natural Resources Inc.    02/25/00        2075/65
William Daniel Balous                               Expedition Natural Resources Inc.    11/24/99        2030/210
Anthony L. Washington                               Expedition Natural Resources Inc.    02/25/00        2091/237
Harold Bernard Balous                               Expedition Natural Resources Inc.    11/08/99        2030/213
Erma Lee Haggarty Wright                            Expedition Natural Resources Inc.    02/25/00        2065/10
Emma Bell Murphy                                    Expedition Natural Resources Inc.    11/11/99        2030/216
Darrell D. Washington                               Expedition Natural Resources Inc.    02/25/00        2126/104
Elena Jenkins                                       Expedition Natural Resources Inc.    11/22/99        2030/219
Gregory Otis Burell                                 Expedition Natural Resources Inc.    01/03/01        2191/205
Charles Burrell, Sr.                                Expedition Natural Resources Inc.    11/15/99        2030/222
Hillary L. Greene, Jr.                              Capital Land Services, Inc.          11/19/98        1882/121
Fay Mitchell Greene, Ind. & AIF f/Odile Green       Capital Land Services, Inc.          11/19/98        1882/118
L. E. Ostrom et ux                                  Expedition Natural Resources Inc.    07/09/01        2282/132
Kenneth R. Everett                                  Expedition Natural Resources Inc.    02/01/00        2059/285
Roy Phillip Everett                                 Expedition Natural Resources Inc.    02/01/00        2059/282
J. Whiteside, Ind. & as Trustee                     Capital Land Services, Inc.          03/20/98        1796/33
Drew Whiteside & R. Nolte                           Capital Land Services, Inc.          03/20/98        1796/29
Ronald Sangster                                     Capital Land Services, Inc.          03/20/98        1796/13
Gordon W. Sangster                                  Capital Land Services, Inc.          03/20/98        1796/21
Robert G. Whiteside                                 Capital Land Services, Inc.          03/20/98        1800/335
Robert L. Sneed                                     Capital Land Services, Inc.          04/01/98        1800/331
Larry D. Sneed, a single man                        Capital Land Services, Inc.          04/01/98        1806/240
J.C. Bell, Jr. et ux                                Capital Land Services, Inc.          04/10/98        1812/102
Jeffery Ladine Veasley, et ux                       Capital Land Services, Inc.          07/09/98        1879/344
Ella M. Bell                                        Capital Land Services, Inc.          09/23/98        1851/255
Edward Jarome Bell                                  Capital Land Services, Inc.          07/09/98        1843/167
Joseph L. Black                                     Capital Land Services, Inc.          04/21/98        1812/90
Will I. Black                                       Capital Land Services, Inc.          04/21/98        1812/86
Ralph Woodkins, et us                               Capital Land Services, Inc.          05/28/98        1816/106
Henry McGlothin                                     Capital Land Services, Inc.          04/17/98        1812/94
Zephyr M. May                                       Capital Land Services, Inc.          05/05/98        1812/98
</TABLE>
                           Exhibit A. Part 1, Page -1-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Doris Cooper                                        Capital Land Services, Inc.          05/11/98        1812/74
Mable Thomas                                        Capital Land Services, Inc.          05/18/98        1816/98
Yvonne M. Allen                                     Capital Land Services, Inc.          05/05/98        1812/70
Betty Williams                                      Capital Land Services, Inc.          05/11/98        1825/254
Mary J. Davis                                       Capital Land Services, Inc.          05/11/98        1825/250
Paul Wood                                           Capital Land Services, Inc.          07/09/98        1834/1
Gregory Thomas                                      Capital Land Services, Inc.          07/09/98        1834/5
Kenneth N. Brown                                    Capital Land Services, Inc.          11/14/01        1812/82
Rex Brown, Sr.                                      Capital Land Services, Inc.          05/19/98        1812/78
David Earl Reed, et ux-Sold to Jimmy Woods          Capital Land Services, Inc.          06/17/98        1816/90
Mark A. Whaley                                      Capital Land Services, Inc.          06/01/98        1806/232
Sharon S. Archer                                    Capital Land Services, Inc.          06/01/98        1816/110
Oscar Lee Walker                                    Capital Land Services, Inc.          05/18/98        1816/102
Mary R. Adams                                       Capital Land Services, Inc.          06/13/98        1834/9
Carzie Adams, et ux                                 Expedition Natural Resources Inc.    08/06/01        2286/306
Johnnie Beasley                                     Capital Land Services, Inc.          08/03/98        1843/182
Gloria Nero, Ind. & Rem.                            Capital Land Services, Inc.          08/06/98        1837/271
Patsy Ford, Ind. & Rem.                             Capital Land Services, Inc.          08/06/98        1837/275
Lucinda Harris                                      Capital Land Services, Inc.          08/06/98        1865/275
Vernell Weathersby, Ind. & Rem.                     Capital Land Services, Inc.          08/06/98        1843/178
Richard Harris, Ind. & Rem.                         Capital Land Services, Inc.          08/06/98        1843/186
Carolyn Newhouse, Ind. & Rem.                       Capital Land Services, Inc.          08/06/98        1859/46
Raymond Harris, Ind.& Rem.                          Capital Land Services, Inc.          08/06/98        1859/50
Lavida Barnes, Ind. & Rem.                          Capital Land Services, Inc.          08/06/98        1849/42
Likica Harris, Ind. & Rem.                          Capital Land Services, Inc.          08/06/98        1865/279
Drew Whiteside & Ruth Nolte                         Expedition Natural Resources Inc.    09/09/99        1999/102
James E. Whiteside, Trustee                         Expedition Natural Resources Inc.    09/09/99        1999/106
Ronald H. Sangster                                  Expedition Natural Resources Inc.    09/21/99        2030/176
Gordon W. Sangster                                  Expedition Natural Resources Inc.    09/21/99        2027/150
Bank of America, Exec. Est Robert G. Whiteside      Expedition Natural Resources Inc.    09/28/99        2030/171
Selma Downs, widow of Travis Downs                  Expedition Natural Resources Inc.    11/05/99        2023/208
Verneva Elliott McPike                              Expedition Natural Resources Inc.    10/01/99        2023/204
Cynthia Charles Bell                                Expedition Natural Resources Inc.    11/10/99        2030/225
Ola Mae Downs Jones                                 Expedition Natural Resources Inc.    11/08/99        2023/201
Ivary Charles                                       Expedition Natural Resources Inc.    11/10/99        2030/228
Lawrence Moon                                       Expedition Natural Resources Inc.    11/08/99        2027/156
Portia Elliott                                      Expedition Natural Resources Inc.    10/01/99        2030/142
Gene Autry Brown                                    Expedition Natural Resources Inc.    11/10/99        2027/165
Emmett Downs                                        Expedition Natural Resources Inc.    11/11/99        2030/146
Joe Bell                                            Expedition Natural Resources Inc.    11/10/99        2027/168
Cynthia Elliott Garnett                             Expedition Natural Resources Inc.    11/15/99        2030/149
Pearlean Banks                                      Expedition Natural Resources Inc.    11/10/99        2027/171
Bonnie Mitchell                                     Expedition Natural Resources Inc.    11/24/99        2030/152
James E. Brown                                      Expedition Natural Resources Inc.    11/10/99        2030/189
Betty Joe Downs Booker                              Expedition Natural Resources Inc.    11/18/99        2030/155
Lyndrel Downs                                       Expedition Natural Resources Inc.    11/11/99        2027/159
Grover Balous                                       Expedition Natural Resources Inc.    11/24/99        2030/158
Annie D. Gillespie                                  Expedition Natural Resources Inc.    11/18/99        2027/162
Leroy Burrell                                       Expedition Natural Resources Inc.    11/10/99        2030/161
</TABLE>
                           Exhibit A. Part 1, Page -2-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Calvin Downs                                        Expedition Natural Resources Inc.    11/18/99        2030/198
Annette Downs Fowler                                Expedition Natural Resources Inc.    11/11/99        2030/164
Elizabeth Crawford                                  Expedition Natural Resources Inc.    11/18/99        2030/195
Eleanor Elliott Jones                               Expedition Natural Resources Inc.    10/01/99        2030/167
Deloris D. Randolph, Bobbie J.                      Expedition Natural Resources Inc.    11/08/99        2030/192
Kathryn Jean Charles Turner                         Expedition Natural Resources Inc.    11/10/99        2033/318
Teressa Willie                                      Expedition Natural Resources Inc.    08/06/98        1837/279
Daniel Scott Stanford                               Expedition Natural Resources Inc.    11/05/99        2030/237
Katrina Charles                                     Expedition Natural Resources Inc.    11/10/99        2033/312
Paulette E. Wellington                              Expedition Natural Resources Inc.    11/11/99        2030/231
Ramisha Charles                                     Expedition Natural Resources Inc.    11/10/99        2033/309
Frankie D. Dillard                                  Expedition Natural Resources Inc.    11/18/99        2030/234
Robert Chester Downs                                Expedition Natural Resources Inc.    11/11/99        2040/331
William A. Downs                                    Expedition Natural Resources Inc.    11/11/99        2030/240
Sandra Kennedy                                      Expedition Natural Resources Inc.    12/01/99        2040/334
Ardelia Burell                                      Expedition Natural Resources Inc.    11/15/99        2030/243
Thomas Robinson, Jr.                                Expedition Natural Resources Inc.    01/10/00        2048/95
Thelma Smith                                        Expedition Natural Resources Inc.    11/15/99        2030/246
Delbert Roy Burrell                                 Expedition Natural Resources Inc.    11/15/99        2048/91
Chester B. Balous Phillips                          Expedition Natural Resources Inc.    11/08/99        2030/207
Calvert Charles                                     Expedition Natural Resources Inc.    11/10/99        2059/299
Calvin Davis                                        Expedition Natural Resources Inc.    11/24/99        2030/201
Aurelia Vann                                        Capital Land Services, Inc.          05/07/98        1876/91
Cameron McElroy, et us                              Capital Land Services, Inc.          05/07/98        1829/317

                    WELL NAME                                  WI                           NRI          LOCATION
ANNIE PERRY #1L                                             1.0000000                    0.8214167       M.S. Ussery Survey A-722
ANNIE PERRY #1U                                             1.0000000                    0.8312135       M.S. Ussery Survey A-722
ANNIE PERRY #2U                                             1.0000000                    0.8312135       M.S. Ussery Survey A-722
ANNIE PERRY #2L                                             1.0000000                    0.8312135       M.S. Ussery Survey A-722
MCINTOSH #1U                                                1.0000000                    0.8333333       M.S. Ussery Survey A-722
MCINTOSH #1L                                                1.0000000                    0.7224992       M.S. Ussery Survey A-722
SCOTT #1                                                    0.300000                     0.2466004       S. C.Garner A-276
SCOTT #2                                                    0.300000                     0.2466004       S. C.Garner A-276
LAWLESS TRUST #1                                            0.300000                     0.2466004       S. C.Garner A-276

LESSOR                                              LESSEE                               LSE DATE        BOOK/PAGE
Faye Everett McIntosh                               Expedition Natural Resources Inc.    05/07/01        2238/72
Faye Everett McIntosh                               Capital Land Services, Inc.          03/27/98        1800/327
The Gaylord/ Alta. Lawless, Sr.Rev Living Trust     Capital Land Services, Inc.          04/20/98        1806/236
Mary McBride McConathy, et ux                       Capital Land Services, Inc.          07/14/98        1833/343
Helen Smith                                         Expedition Natural Resources Inc.    06/29/98        2230/308
Shirley Burt Smith                                  Expedition Natural Resources Inc.    03/16/01        2225/98
Nedra Smith Vines                                   Expedition Natural Resources Inc.    03/16/01        2225/93
Arveal Smith Culpepper                              Expedition Natural Resources Inc.    03/16/01        2225/79
Eloise Smith Bamburg                                Expedition Natural Resources Inc.    03/16/01        2225/88
Martha Jane Knighten Lockhart                       Expedition Natural Resources Inc.    03/23/01        2225/110
Linda Lou Lawless Hickey                            Expedition Natural Resources Inc.    03/23/01        2242/330
Joyce Reeves Roe                                    Expedition Natural Resources Inc.    03/23/01        2225/113
Charles Edward Knighten                             Expedition Natural Resources Inc.    03/23/01        2231/223
</TABLE>
                           Exhibit A. Part 1, Page -3-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Kira Hoff                                           Expedition Natural Resources Inc.    03/23/01        2242/336
Carol Dawn Reeves Fruge                             Expedition Natural Resources Inc.    03/23/01        2231/226
G. B. Smith, Jr.                                    Expedition Natural Resources Inc.    03/16/01        2231/229
Linda Jimmerson Everett                             Expedition Natural Resources Inc.    03/16/01        2242/333
Colleen Reeves Anderson                             Expedition Natural Resources Inc.    03/23/01        2403/199
Adolphus Sneed                                      Capital Land Services, Inc.          06/17/98        1825/271
John Scott Westmoreland                             Expedition Natural Resources Inc.    03/23/01        2225/96
Nan Scott Garvin                                    Capital Land Services, Inc.          06/16/98        1843/157
H.W. Scott, et ux                                   Capital Land Services, Inc.          06/16/98        1851/206
Linda Scott Nolen                                   Capital Land Services, Inc.          06/29/98        1843/162
Suzanne Scott Handley                               Capital Land Services, Inc.          06/16/98        1851/216
Frank Scott, Jr.                                    Capital Land Services, Inc.          06/29/98        1851/230
Hiram Bryan Scott                                   Capital Land Services, Inc.          06/16/98        1859/33
M. & G. Investments (Gary Waldrop)                  Expedition Natural Resources Inc.    10/08/02        2531/88
O.J. Holt, Jr. et ux                                Capital Land Services, Inc.          08/03/98        1859/38
James Evans Burnett                                 Capital Land Services, Inc.          08/04/98        1851/251
Wanda Holt                                          Capital Land Services, Inc.          08/18/98        1865/271
Tim Holt & Eva Holt                                 Capital Land Services, Inc.          08/03/98        1880/1
Andrew J. Brune                                     Expedition Natural Resources Inc.    05/23/01        2262/19
Twilla Ann Simmons                                  Expedition Natural Resources Inc.    05/18/01        2262/23
Norman Gene Ashley                                  Expedition Natural Resources Inc.    07/27/01        2295/7
Karen E. Holt Ishee                                 Expedition Natural Resources Inc.    07/27/01        2065/39
Susan Ann Holt Bearden                              Expedition Natural Resources Inc.    07/27/01        2065/33
James Ashley aka James Lamar Holt                   Expedition Natural Resources Inc.    03/04/02        2403/205
Allen Roberts                                       Expedition Natural Resources Inc.    02/09/00        2064/346
Janis Roberts                                       Expedition Natural Resources Inc.    02/09/00        2065/1
Christopher Evan Roberts, Indiv/Admin Alvin Lenox   Expedition Natural Resources Inc.    02/09/00        2091/231
Patsy Cox, Receiver for Alvin Lamar Roberts         Expedition Natural Resources Inc.    04/04/01        2222/324
Teresa Roberts aka Teresa Roberts Burgess           Expedition Natural Resources Inc.    04/24/02        2425/340
Clydel Perry                                        Expedition Natural Resources Inc.    01/06/00        2044/023
Earnest Perry, Jr. See Lse for Spec. Prov.          Expedition Natural Resources Inc.    01/10/00        2044/026
Harold Moore                                        Expedition Natural Resources Inc.    12/22/99        2054/346
Otis J. Moore, Ind & as AIF Floyd W. Moore          Expedition Natural Resources Inc.    01/11/00        2207/175
Gladys Moore Williams                               Expedition Natural Resources Inc.    12/22/99        2055/7
Rhonda Kay Moore                                    Expedition Natural Resources Inc.    12/22/99        2054/322
Clifton Moore, Jr.                                  Expedition Natural Resources Inc.    12/22/99        2054/325
Gary Lynn Moore                                     Expedition Natural Resources Inc.    12/22/99        2054/328
Willie Mae Moore                                    Expedition Natural Resources Inc.    12/22/99        2054/331
Etta Pearl Moore                                    Expedition Natural Resources Inc.    02/09/00        2065/18
Evelyn D. Wright                                    Expedition Natural Resources Inc.    02/09/00        2065/27
Hattie Hodge                                        Expedition Natural Resources Inc.    02/16/00        2065/30
Lynette Moore                                       Expedition Natural Resources Inc.    02/15/00        2075/73
Lavenia Diane Williams                              Expedition Natural Resources Inc.    02/15/00        2075/70
Lisa Moore Bernard - Pugh Clause                    Expedition Natural Resources Inc.    02/15/00        2065/7
Nicol Booth                                         Expedition Natural Resources Inc.    02/15/00        2064/334
Linda F. Woods                                      Expedition Natural Resources Inc.    02/16/00        2064/343
Karla D. Thomas                                     Expedition Natural Resources Inc.    02/09/00        2105/3
Karen E. Moore                                      Expedition Natural Resources Inc.    03/05/01        2222/39
Myrtle Ann Moore Howe                               Expedition Natural Resources Inc.    10/08/02        2570/308
</TABLE>
                           Exhibit A. Part 1, Page -4-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Zelma Moore                                         Expedition Natural Resources Inc.    12/22/99        2054/310
Cynthia L. Green                                    Expedition Natural Resources Inc.    12/22/99        2054/313
Robert Lee Moore, Jr.                               Expedition Natural Resources Inc.    12/22/99        2054/316
Ronald Moore                                        Expedition Natural Resources Inc.    12/22/99        2054/319
Theola Moore Owens                                  Expedition Natural Resources Inc.    12/22/99        2054/343
Avis T. Smith                                       Expedition Natural Resources Inc.    12/22/99        2059/296
Stewart Williams, Sr.                               Expedition Natural Resources Inc.    12/20/00        2187/212
Tameka Williams                                     Expedition Natural Resources Inc.    12/20/00        2187/212
Lemetris Williams                                   Expedition Natural Resources Inc.    12/20/00        2187/212
La Toya Williams Jackson                            Expedition Natural Resources Inc.    12/20/00        2187/218
Stewart Williams, Jr.                               Expedition Natural Resources Inc.    12/20/00        2187/215
Edward Moore                                        Expedition Natural Resources Inc.    12/20/00        2187/209
Oliver Moore                                        Expedition Natural Resources Inc.    12/20/00        2187/206
Melba Moore                                         Expedition Natural Resources Inc.    12/20/00        2187/221
Luther L. Moore                                     Expedition Natural Resources Inc.    12/20/00        2189/337
Jeannette Haynie Holmes                             Expedition Natural Resources Inc.    12/16/99        2065/21
Timothy Haynie                                      Expedition Natural Resources Inc.    12/16/99        2065/24
Fred S. Moore                                       Expedition Natural Resources Inc.    03/16/00        2075/67
Kermit C. Moore , Jr.                               Expedition Natural Resources Inc.    12/16/99        2065/4
Marilyn Stephens                                    Expedition Natural Resources Inc.    09/18/00        2151/56
Gloria Cudjo                                        Expedition Natural Resources Inc.    09/11/00        2165/123
Lonzetta King                                       Expedition Natural Resources Inc.    09/11/00        2165/120
Phoenix R. Sneed                                    Expedition Natural Resources Inc.    09/11/00        2165/204
David E. & Priscilla A. Harrington                  Expedition Natural Resources Inc.    11/15/00        2196/99
James Charles Westmoreland                          Expedition Natural Resources Inc.    12/26/01        2372/97
Ruth Doris Fields                                   Expedition Natural Resources Inc.    01/05/01        2200/34
Gaylord Lawless, Sr.                                Expedition Natural Resources Inc.    05/04/01        2242/345
Robert L. Sneed                                     Capital Land Services, Inc.          04/01/98        1800/331
Larry D. Sneed                                      Capital Land Services, Inc.          04/01/98        1806/240
Andrew J. Brune                                     Penn Virginia Oil & Gas, L.P.        02/04/05        3065/53
James Evans Burnett                                 Penn Virginia Oil & Gas, L.P.        02/04/05        3150/345
James Evans Burnett                                 Penn Virginia Oil & Gas, L.P.        05/23/05        N/A
Andrew J. Brune                                     Penn Virginia Oil & Gas, L.P.        05/23/05        3151/36
James Ashley                                        Penn Virginia Oil & Gas, L.P.        09/01/05        N/A

                    WELL NAME                                    WI                         NRI          LOCATION
FURRH GU # 4 (SUN 3)                                          0.9827483                  0.7157472       E. Pearce Survey A-577
FURRH OU #5                                                   0.7910000                  0.5753108       E. Pearce Survey A-577

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Mrs. Ewing Furrh Tenney, a widow, et al             Barnwell Production Company          12/03/56        483/326
Ruth Furrh Lothrop, et vir                          Barnwell Production Company          12/03/56        483/314
J. D. Furrh, et al                                  Barnwell Production Company          12/03/56        483/301
Joe Wilson, et us                                   L. K. Townsend, et al                09/02/54        439/106
Robert Lewis, et ux                                 L. K. Townsend, et al                09/01/54        439/96
Joe Timmins, et al                                  R. H. Pendleton                      03/08/54        434/155
A. B. Fishser, et al                                R. H. Pendleton                      03/10/54        434/151
J. B. Furrh, Jr., et al                             Petroleum Production Mgmt. Inc.      09/04/54        439/291
Lucille Woolen, et al                               Tom Worsham                          02/10/58        508/600
J. B. Furrh, Jr., et al                             Petroleum Production Mgmt. Inc.      10/13/88        1199/330
J. B. Furrh, Jr., et al                             Petroleum Production Mgmt. Inc.      10/13/88        1199/342
</TABLE>
                           Exhibit A. Part 1, Page -5-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
J. B. Furrh, Jr., et al                             Petroleum Production Mgmt. Inc.      10/13/88        1199/355
J. B. Furrh, Jr., et al                             Petroleum Production Mgmt. Inc.      10/13/88        1199/367
J. B. Furrh, Jr., et al                             Petroleum Production Mgmt. Inc.      10/13/88        1199/379
J. B. Furrh, Jr., et al                             Petroleum Production Mgmt. Inc.      10/13/88        1199/391

                    WELL NAME                                    WI                          NRI         LOCATION
TIMMINS. Betty #1 TA                                          0.8324554                   0.6781952      F.G. Timmins Survey A-702
TIMMINS GU #6U TA                                             0.8326795                   0.6063670      J. Findley Survey A-247
TIMMINS GU #6L TA                                             0.8326795                   0.6063670      J. Findley Survey A-247
TIMMINS (SUN) #7                                              0.7691374                   0.6603494      J. Findley Survey A-247

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Mrs. Marie Black Hogg, et vir                       A. M. Rozeman                        03/18/54        352/636
Mrs. Era Black Webb, et vir                         A. M. Rozeman                        03/18/54        352/632
R. W. Williams, et al                               Charles F. DeBardeleben, Jr.         01/19/55        446/555
Mrs. Florence J. Russenberger, et al                A. M. Rozeman                        06/17/53        427/343
W. C. Feazel, et al                                 Barnwell Production Company          11/12/55        381/369
W. C. Feazel, et al                                 Barnwell Production Company          09/16/55        381/26
Mrs. Ottelia A. McGill                              A. M. Rozeman                        06/18/53        427/378
John Tutle, et al                                   A. M. Rozeman                        04/28/55        419/416
Mrs. Octavia Timmins, et al                         A. M. Rozeman                        04/29/53        338/325
A. F. Timmins, et us                                A. M. Rozeman                        04/29/54        338/308

                    WELL NAME                                    WI                         NRI          LOCATION
LAWLESS GU #2                                                 0.8323240                  0.5850609       J. Thorpe Survey A-701
LAWLESS GU #1C                                                0.8100183                  0.5281563       J. Thorpe Survey A-701
LAWLESS GU #1T TA                                             0.8100183                  0.5281563       J. Thorpe Survey A-701
LAWLESS GU A #1 TA                                            0.8098835                  0.5844918       J. Thorpe Survey A-701

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Asa Rhodes, et ux                                   J. G. Barker, et al                  10/05/54        441/14
G. A. Lawless, et ux                                R. Lacy                              01/16/46        280/555
A. Dwight Nims, et al                               Barnwell Drilling Company            03/12/55        449/566
Mrs. Margaret Delaney, et al                        L. L. Sugar                          01/04/55        443/241
Wynema B. Lawler                                    Barnwell Drilling Company            04/05/55        452/261
E. A. Tench                                         Barnwell Drilling Company            03/12/55        449/570
Mrs. Nannie McJimsey, et al                         F. A. Adair, et al                   09/17/53        428/402
Robert Lewis, et ux                                 J. G. Barker                         07/06/45        273/629
Robert Lewis, Jr., et al                            J. G. Barker                         10/06/54        441/4
Hattie Wilson, et vir                               J. G. Barker                         10/15/54        441/1
Elizabeth Lauerman Galvin, et vir                   F. A. Adair                          11/25/53        428/386

                    WELL NAME                                    WI                         NRI          LOCATION
J. F. ROBERTS GU #1C                                          0.8319521                  0.6503612       D. Tuttle Survey A-668
J. F. ROBERTS GU #1T                                          0.8319521                  0.6503612       D. Tuttle Survey A-668
TIMMINS #4C TA                                                0.8508422                  0.6235410       J. Findley Survey A-247
TIMMINS #4T TA                                                0.8508422                  0.6235410       J. Findley Survey A-247

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Joseph Franklin Roberts, et al                      Barnwell Drilling Company            8/5/1954        359/507
</TABLE>
                           Exhibit A. Part 1, Page -6-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Mims Chapel Methodist Church                        C. F. DeBardeleben, Jr.              1/2/1955        367/250
J. B. Furrh, et al                                  Panola Trading Company, Inc.         7/9/1957        407/413
Climmie Lee Page, et vir                            Barnwell Production Company          4/24/1957       405/400
L. C. Nelson Cox, et al                             Barnwell Production Company          4/24/1957       407/367
Mattie Pearl Cooper Morgan, et vir                  Barnwell Production Company          4/24/1957       405/241
Vince Cox, et al                                    Barnwell Production Company          4/24/1957       404/570
Ben Cooper, et al                                   Barnwell Production Company          4/24/1957       404/293
J. B. Furrh, et al                                  Panola Trading Company, Inc.         7/8/1957        407/417
Margaret B. Moller, et al                           Panola Trading Company, Inc.         5/31/1957       407/301
J. B. Furrh, et al                                  Panola Trading Company, Inc.         7/9/1957        407/409
Effie Cooper Mitchell, et al                        Panola Trading Company, Inc.         6/7/1957        408/188
Rose Anderson Love, et al                           Panola Trading Company, Inc.         7/29/1957       409/174
Senice Cooper                                       Panola Trading Company, Inc.         7/20/1957       408/254
Mattie Pearl Morgan, et vir                         Panola Trading Company, Inc.         6/14/1957       408/311
L. C. Cox, et al                                    Panola Trading Company, Inc.         6/6/1957        406/103
Andrew Cooper, et al                                Panola Trading Company, Inc.         5/31/1957       411/303
Johnnie Cooper, et al                               Panola Trading Company, Inc.         5/31/1957       406/99
Willie Sewell, et al                                Panola Trading Company, Inc.         6/6/1957        406/87
Austin Cooper                                       Panola Trading Company, Inc.         8/19/1957       409/153
Tom Cooper, et us                                   Panola Trading Company, Inc          5/31/1957       405/538
H. T. Long                                          Panola Trading Company, Inc.         5/31/1957       405/578
J. B. Furrh, et al                                  Panola Trading Company, Inc.         7/9/1957        408/319
W. M. Steele, et al                                 Panola Trading Company, Inc.         5/24/1957       408/25
Lawrence Macon                                      Panola Trading Company, Inc.         6/25/1957       UKN
Ben Hawkins, et al                                  Panola Trading Company, Inc.         5/24/1957       407/630
Lawrence Macon                                      Panola Trading Company, Inc.         5/24/1957       407/527
Lawrence Macon                                      Panola Trading Company, Inc.         6/25/1957       407/172
Leona Stafford, et al                               Panola Trading Company, Inc.         5/24/1957       407/180
Signora L. Green                                    Panola Trading Company, Inc.         5/24/1957       407/176
Allie Bell Taylor, et al                            Panola Trading Company, Inc.         5/24/1957       406/95
John D. Furrh, Jr.                                  Panola Trading Company, Inc.         7/9/1957        407/432
Johnnie Cooper, et us                               Panola Trading Company, Inc.         5/24/1957       405/397
John D. Furrh, Jr.                                  Panola Trading Company, Inc.         7/9/1957        407/435

                    WELL NAME                                    WI                         NRI          LOCATION
TIMMINS GU B #1                                               0.8737368                  0.6324406       J. Thorpe Survey A-701
TIMMINS GU #A-3C TA                                           0.8356745                  0.5756960       J. Findley Survey A-247
TIMMINS GU #3C TA                                             0.8356746                  0.6078865       J. Findley Survey A-247

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Mrs. Octavia Timmins, et al                         A. M. Rozeman                        04/29/53        419/407
Howard E. Haynes, et ux                             A. H. Faulkner                       01/10/45        265/379
W. R. Price, et ux                                  R. Lacy                              01/16/46        280/553

                    WELL NAME                                    WI                         NRI          LOCATION
A. WILLIAMS GU #1C                                            0.8599137                  0.6469630       F.G. Timmins Survey A-664
A. WILLIAMS #2 TA                                             1.0000000                  0.7229680       H. Roberts Survey A-562

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
J. D. Furrh, et al                                  J. B. Dial                           02/06/45        197/132
</TABLE>
                           Exhibit A. Part 1, Page -7-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Mrs. C. C. Steel, et al                             J. B. Dial                           02/26/45        330/552
Security State Bank of Elysian Fields, Texas        J. B. Dial                           02/06/45        197/119
B. H. Timmins, et ux                                J. B. Dial                           02/06/45        281/11
J. B. Furrh, et al                                  J. B. Dial                           02/06/45        197/12/
J. B. Furrh, et al                                  J. B. Dial                           02/06/45        276/463
Rufus Richardson, et al                             R. H. Pendleton                      05/10/54        354/633
Lloyd Richardson, et al                             J. B. Dial                           05/10/54        354/638
Obelia Herrod Allen                                 Harry D. Kahn                        10/02/53        425/594
Obelia Herrod Allen                                 Harry D. Kahn                        11/10/54        443/565
Acie Johnson, Jr., et us                            Marvin E. Pollard                    09/08/54        439/295
Arnold Lewis Williams                               J. G. Barker                         08/25/53        341/452
Ophelia Timmins                                     J. G. Barker                         08/28/53        341/455
Asbie Cobb, et ux                                   Marvin E. Pollard                    05/12/54        355/310

                    WELL NAME                                    WI                         NRI          LOCATION
SANDERS MOORE #1L                                             1.0000000                  0.8275938       M.S. Ussery Survey A-722
SANDERS MOORE #1U                                             1.0000000                  0.8378342       M.S. Ussery Survey A-722
SANDERS MOORE #2U                                             1.0000000                  0.8378342       M.S. Ussery Survey A-722
SANDERS MOORE #2L                                             1.0000000                  0.8378342       M.S. Ussery Survey A-722
SANDERS MOORE #3U                                             1.0000000                  0.8378342       M.S. Ussery Survey A-722

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
O.J. Holt, Jr. et ux                                Capital Land Services, Inc.          08/03/98        1859/38
Tim Holt & Eva Holt                                 Capital Land Services, Inc.          08/03/98        1880/1
James Evans Burnett                                 Capital Land Services, Inc.          08/04/98        1851/251
Wanda Holt                                          Capital Land Services, Inc.          08/18/98        1865/271
Ellen Dolores Sharp Reynolds                        Capital Land Services, Inc.          09/08/98        1870/299
Twilla Ann Simmons                                  Expedition Natural Resources Inc.    05/18/01        2262/23
Andrew J. Brune                                     Expedition Natural Resources Inc.    05/23/01        2262/19
Norman Gene Ashley                                  Expedition Natural Resources Inc.    07/27/01        2295/7
Karen E. Holt Ishee                                 Expedition Natural Resources Inc.    07/27/01        2065/3*9
Susan Ann Holt Bearden                              Expedition Natural Resources Inc.    07/27/01        2065/33
James Ashley aka James Lamar Holt                   Expedition Natural Resources Inc.    03/04/02        2403/205
Joseph L. Black                                     Capital Land Services, Inc.          04/21/98        1812/90
Will I. Black                                       Capital Land Services, Inc.          04/21/98        1812/86
Ralph Woodkins, et us                               Capital Land Services, Inc.          05/28/98        1816/106
Hillary L. Greene, Jr.                              Capital Land Services, Inc.          11/19/98        1882/121
Fay Mitchell Greene, Ind. & AIF f/Odile Green       Capital Land Services, Inc.          11/19/98        1882/118
L. E. Ostrom et ux                                  Expedition Natural Resources Inc.    07/09/01        2282/132
Jeannette Haynie Holmes                             Expedition Natural Resources Inc.    12/16/99        2065/21
Timothy Haynie                                      Expedition Natural Resources Inc.    12/16/99        2065/24
Kermit C. Moore , Sr.                               Expedition Natural Resources Inc.    12/16/99        2065/4
Fred S. Moore                                       Expedition Natural Resources Inc.    03/16/00        2075/67
Marilyn Stephens                                    Expedition Natural Resources Inc.    09/18/00        2151/56
Harold Moore                                        Expedition Natural Resources Inc.    12/22/99        2054/346
Gladys Moore Williams                               Expedition Natural Resources Inc.    12/22/99        2055/7
Rhonda Kay Moore                                    Expedition Natural Resources Inc.    12/22/99        2054/322
Clifton Moore, Jr.                                  Expedition Natural Resources Inc.    12/22/99        2054/325
Gary Lynn Moore                                     Expedition Natural Resources Inc.    12/22/99        2054/328
Willie Mae Moore                                    Expedition Natural Resources Inc.    12/22/99        2054/331
</TABLE>
                           Exhibit A. Part 1, Page -8-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Zelma Moore                                         Expedition Natural Resources Inc.    12/22/99        2054/310
Cynthia L. Green                                    Expedition Natural Resources Inc.    12/22/99        2054/313
Robert Lee Moore, Jr.                               Expedition Natural Resources Inc.    12/22/99        2054/316
Ronald Moore                                        Expedition Natural Resources Inc.    12/22/99        2054/319
Theola Moore Owens                                  Expedition Natural Resources Inc.    12/22/99        2054/343
Avis T. Smith                                       Expedition Natural Resources Inc.    12/22/99        2059/296
Otis J. Moore, Ind & as AIF Floyd W. Moore          Expedition Natural Resources Inc.    01/11/00        2207/175
Allen Roberts                                       Expedition Natural Resources Inc.    02/09/00        2064/346
Janis Roberts                                       Expedition Natural Resources Inc.    02/09/00        2065/1
Christopher Evan Roberts, Indiv/Admin Alvin Lenox   Expedition Natural Resources Inc.    02/09/00        2091/231
Etta Pearl Moore                                    Expedition Natural Resources Inc.    02/09/00        2065/18
Evelyn D. Wright                                    Expedition Natural Resources Inc.    02/09/00        2065/27
Karla D. Thomas                                     Expedition Natural Resources Inc.    02/09/00        2105/3
Lynette Moore                                       Expedition Natural Resources Inc.    02/15/00        2075/73
Lavenia Diane Williams                              Expedition Natural Resources Inc.    02/15/00        2075/70
Lisa Moore Bernard - Pugh Clause                    Expedition Natural Resources Inc.    02/15/00        2065/7
Nicol Booth                                         Expedition Natural Resources Inc.    02/15/00        2064/334
Hattie Hodge                                        Expedition Natural Resources Inc.    02/16/00        2065/30
Linda F. Woods                                      Expedition Natural Resources Inc.    02/16/00        2064/343
Stewart Williams, Sr.                               Expedition Natural Resources Inc.    12/20/00        2187/212
Tameka Williams                                     Expedition Natural Resources Inc.    12/20/00        2187/212
Lemetris Williams                                   Expedition Natural Resources Inc.    12/20/00        2187/212
La Toya Williams Jackson                            Expedition Natural Resources Inc.    12/20/00        2187/218
Stewart Williams, Jr.                               Expedition Natural Resources Inc.    12/20/00        2187/215
Edward Moore                                        Expedition Natural Resources Inc.    12/20/00        2187/209
Oliver Moore                                        Expedition Natural Resources Inc.    12/20/00        2187/206
Melba Moore                                         Expedition Natural Resources Inc.    12/20/00        2187/221
Luther L. Moore                                     Expedition Natural Resources Inc.    12/20/00        2189/337
Karen E. Moore                                      Expedition Natural Resources Inc.    03/05/01        2222/39
Patsy Cox, Receiver for Alvin Lamar Roberts         Expedition Natural Resources Inc.    04/04/01        2222/324
Myrtle Ann Moore Howe                               Expedition Natural Resources Inc.    10/08/02        2570/308
Vernon Wayne Fults                                  Capital Land Services, Inc.          03/11/98        2020/267
Robert G. Whiteside                                 Capital Land Services, Inc.          02/27/98        1976/43
Ronald Sangster                                     Capital Land Services, Inc.          03/10/98        1796/25
J. Whiteside, Ind. & as Trustee                     Capital Land Services, Inc.          03/18/98        1796/33
Drew Whiteside & R. Nolte                           Capital Land Services, Inc.          03/18/98        1796/37
Gordon W. Sangster                                  Capital Land Services, Inc.          03/18/98        1796/21
Hibernia Nat'l Bank, Ttee Eithel Barker Trst A & B  Expedition Natural Resources Inc.    10/20/99        2017/1
Charles E. Brittain                                 Capital Land Services, Inc.          04/17/98        1880/5
Joe Neicer Brittain                                 Capital Land Services, Inc.          04/17/98        1851/259
Ester Rosborough                                    Capital Land Services, Inc.          05/11/98        1816/94
Henry F. Sanders, et us                             Capital Land Services, Inc.          05/11/98        1825/258
Ezell Rosborough                                    Capital Land Services, Inc.          05/11/98        1833/325
Timothy Rosborough                                  Capital Land Services, Inc.          05/11/98        1833/335
Annabel Pagan Blakey                                Expedition Natural Resources Inc.    12/23/99        2038/196
Frances B. Prokopis                                 Expedition Natural Resources Inc.    12/24/99        2038/199
Dorothy Kay McGrath Babbitt                         Expedition Natural Resources Inc.    12/24/99        2040/205
Nellrene E. Holt                                    Expedition Natural Resources Inc.    01/10/00        2054/334
Susan Bearden Holt                                  Expedition Natural Resources Inc.    01/10/00        2065/33
James Lamar Holt                                    Expedition Natural Resources Inc.    01/10/00        2065/36
</TABLE>
                           Exhibit A. Part 1, Page -9-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Karen Holt Wells Ishee                              Expedition Natural Resources Inc.    01/10/00        2065/39
John Mark Blocker                                   Expedition Natural Resources Inc.    01/12/00        2047/205
Nonnie Sue Blocker Dierck                           Expedition Natural Resources Inc.    01/12/00        2047/208
Harry Eugene Blocker, III                           Expedition Natural Resources Inc.    01/12/00        2052/222
Eugene B. Harvey, Jr.                               Expedition Natural Resources Inc.    01/14/00        2047/211
Carol Harvey Coggeshall                             Expedition Natural Resources Inc.    01/14/00        2059/124
James Ford Harvey                                   Expedition Natural Resources Inc.    01/19/00        2065/217
John Stewart Harvey                                 Expedition Natural Resources Inc.    01/19/00        2083/159
Caren Harvey Prothro                                Expedition Natural Resources Inc.    01/21/00        2052/229
Ralph O. Harvey, III                                Expedition Natural Resources Inc.    01/21/00        2052/225
Karen Moore                                         Expedition Natural Resources Inc.    01/24/00        2054/340
Collin C. Diboll Private Foundation                 Expedition Natural Resources Inc.    01/25/00        2056/219
Lynda Harvey Ireland                                Expedition Natural Resources Inc.    01/25/00        2071/229
O. J. Holt, Jr. & Diane Holt                        Expedition Natural Resources Inc.    01/26/00        2054/337
Dale Lawrence Harvey                                Expedition Natural Resources Inc.    01/28/00        2056/229
Jane Harvey Parker                                  Expedition Natural Resources Inc.    01/28/00        2059/131
Lillian D. Blocker, Trustee                         Expedition Natural Resources Inc.    01/31/00        2052/236
Tracy Snyder                                        Expedition Natural Resources Inc.    02/03/00        2056/236
Norman Gene Ashley                                  Expedition Natural Resources Inc.    02/11/00        2295/7
Tim Holt & Eva Holt                                 Expedition Natural Resources Inc.    02/14/00        2064/337
Andrew J. Brune                                     Expedition Natural Resources Inc.    12/18/00        2189/334
James Evans Burnett                                 Expedition Natural Resources Inc.    12/18/00        2187/203
Tina Williams Wilson                                Expedition Natural Resources Inc.    04/01/01        2231/237
Jack D. Green                                       Expedition Natural Resources Inc.    04/18/01        2242/339
Ernest F. Smith Trust                               Expedition Natural Resources Inc.    05/21/01        2275/59
Trust Under Act of Esther R. Smith                  Expedition Natural Resources Inc.    05/21/01        2275/64
Timothy Rosborough                                  Expedition Natural Resources Inc.    05/22/01        2262/38
Ezell Rosborough                                    Expedition Natural Resources Inc.    05/22/01        2262/35
Henry F. Sanders, et ux                             Expedition Natural Resources Inc.    05/22/01        2262/32
Ester Rosborough                                    Expedition Natural Resources Inc.    05/22/01        2275/120
Marshall Independent School District                Expedition Natural Resources Inc.    06/11/01        2262/41
Bobbie Ellen Wood Roberts                           Expedition Natural Resources Inc.    06/28/01        2275/55
Bobbie Jean Woodkins                                Expedition Natural Resources Inc.    07/18/01        2286/309
Linda Barkley Green Jarashow                        Expedition Natural Resources Inc.    09/18/01        2336/217
William McKay Green aka W. M. Green                 Expedition Natural Resources Inc.    09/18/01        2236/221
Leslie Stewart Green Foley                          Expedition Natural Resources Inc.    09/18/01        2336/214
Luberta Bolden                                      Expedition Natural Resources Inc.    10/09/01        2446/57
Anna Bell Bush                                      Expedition Natural Resources Inc.    10/10/01        2349/216
Pauline Juanita Haynes                              Expedition Natural Resources Inc.    10/11/01        2336/165
Louis Bell                                          Expedition Natural Resources Inc.    10/15/01        2336/208
Ware Development Company, LLC                       Expedition Natural Resources Inc.    10/15/01        2334/25
Alice Guenther McLean                               Expedition Natural Resources Inc.    11/26/01        2372/104
Brazee Family Living Trust                          Expedition Natural Resources Inc.    11/27/01        2349/203
Lloyd Lochridge, Jr.                                Expedition Natural Resources Inc.    12/11/01        2365/314
Hibernia Nat'l Bk Tr/Joe & Vivian Lewis Schol
Fund                                                Expedition Natural Resources Inc.    12/19/01        2372/118
Frank T. Bruce                                      Expedition Natural Resources Inc.    02/01/02        2372/68
James Ashley aka James Lamar Holt                   Expedition Natural Resources Inc.    03/04/02        2403/202
Diana Heartsill Young                               Expedition Natural Resources Inc.    01/28/03        2581/127
Carl Marks                                          Expedition Natural Resources Inc.    01/25/05        3050/286
Votie J. Anderson, Tr & Guard                       Capital Land Services, Inc.          06/05/98        1851/212
</TABLE>
                          Exhibit A. Part 1, Page -10-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Billy J. Haynes & Ettie P. Haynes                   Expedition Natural Resources Inc.    03/24/03        2602/46
Marvis D. Price                                     Expedition Natural Resources Inc.    03/24/03        2603/217
Yvonne T. Hooper                                    Expedition Natural Resources Inc.    03/24/03        2603/220
Sandra B. Crosby                                    Expedition Natural Resources Inc.    03/24/03        2603/223
Carolyn F. McCracken                                Expedition Natural Resources Inc.    03/24/03        2603/226
Ronnie Taylor                                       Expedition Natural Resources Inc.    03/24/03        2599/331
Roy M. Taylor, Sr. & Faye J. Taylor                 Expedition Natural Resources Inc.    03/24/03        2606/204
Edward B. Lester                                    Expedition Natural Resources Inc.    04/01/03        2626/8249
Donnie Ray Irving                                   Expedition Natural Resources Inc.    04/02/03        2626/246
Bobby R. Lester                                     Expedition Natural Resources Inc.    04/04/03        2626/261
James Lester                                        Expedition Natural Resources Inc.    04/04/03        2626/255
Arthur D. Irving, Sr.                               Expedition Natural Resources Inc.    04/22/03        2626/252
Emma Jean Lester Williams                           Expedition Natural Resources Inc.    04/23/03        2626/258
Carl Marks                                          Expedition Natural Resources Inc.    01/25/05        3050/286

                    WELL NAME                                       WI                        NRI        LOCATION
HANCOCK GU #1                                                    0.7982500                 0.6506814     M.S. Ussery Survey A-722

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Jerry D. Fults                                      H. Rowold                            08/12/98        1877/323
Brenda Hayner Moon                                  Capital Land Services, Inc.          03/11/98        1825/267
James Brandon Cullum                                Capital Land Services, Inc.          04/06/98        1800/323
Francis Paul Cullum                                 Capital Land Services, Inc.          06/01/98        1829/313
Karen D. Fritschi                                   Capital Land Services, Inc.          06/11/98        1829/321
JoAnn Fults Scott                                   Capital Land Services, Inc.          07/09/98        1833/339
James Earl "Buddy" Fults                            H. Rowold                            08/12/98        1877/319
Clydel Perry                                        Expedition Natural Resources Inc.    01/06/00        2044/023
Earnest Perry, Jr. See Lse for Spec. Prov.          Expedition Natural Resources Inc.    01/10/00        2044/026
Jeannette Haynie Holmes                             Expedition Natural Resources Inc.    12/16/99        2065/21
Timothy Haynie                                      Expedition Natural Resources Inc.    12/16/99        2065/24
Kermit C. Moore , Sr.                               Expedition Natural Resources Inc.    12/16/99        2065/4
Fred S. Moore                                       Expedition Natural Resources Inc.    03/16/00        2075/67
Marilyn Stephens                                    Expedition Natural Resources Inc.    09/18/00        2151/56
Harold Moore                                        Expedition Natural Resources Inc.    12/22/99        2054/346
Ellen Dolores Sharp Reynolds                        Capital Land Services, Inc.          09/08/98        1870/299
Gladys Moore Williams                               Expedition Natural Resources Inc.    12/22/99        2055/7
Rhonda Kay Moore                                    Expedition Natural Resources Inc.    12/22/99        2054/322
Clifton Moore, Jr.                                  Expedition Natural Resources Inc.    12/22/99        2054/325
Gary Lynn Moore                                     Expedition Natural Resources Inc.    12/22/99        2054/328
Willie Mae Moore                                    Expedition Natural Resources Inc.    12/22/99        2054/331
Zelma Moore                                         Expedition Natural Resources Inc.    12/22/99        2054/310
Cynthia L. Green                                    Expedition Natural Resources Inc.    12/22/99        2054/313
Robert Lee Moore, Jr.                               Expedition Natural Resources Inc.    12/22/99        2054/316
Ronald Moore                                        Expedition Natural Resources Inc.    12/22/99        2054/319
Theola Moore Owens                                  Expedition Natural Resources Inc.    12/22/99        2054/343
Avis T. Smith                                       Expedition Natural Resources Inc.    12/22/99        2059/296
Otis J. Moore, Ind & as AIF Floyd W. Moore          Expedition Natural Resources Inc.    01/11/00        2207/175
Allen Roberts                                       Expedition Natural Resources Inc.    02/09/00        2064/346
Janis Roberts                                       Expedition Natural Resources Inc.    02/09/00        2065/1
Christopher Evan Roberts, Indiv/Admin Alvin Lenox   Expedition Natural Resources Inc.    02/09/00        2091/231
</TABLE>
                          Exhibit A. Part 1, Page -11-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Etta Pearl Moore                                    Expedition Natural Resources Inc.    02/09/00        2065/18
Evelyn D. Wright                                    Expedition Natural Resources Inc.    02/09/00        2065/27
Karla D. Thomas                                     Expedition Natural Resources Inc.    02/09/00        2105/3
Lynette Moore                                       Expedition Natural Resources Inc.    02/15/00        2075/73
Lavenia Diane Williams                              Expedition Natural Resources Inc.    02/15/00        2075/70
Lisa Moore Bernard - Pugh Clause                    Expedition Natural Resources Inc.    02/15/00        2065/7
Nicol Booth                                         Expedition Natural Resources Inc.    02/15/00        2064/334
Hattie Hodge                                        Expedition Natural Resources Inc.    02/16/00        2065/30
Linda F. Woods                                      Expedition Natural Resources Inc.    02/16/00        2064/343
Stewart Williams, Sr.                               Expedition Natural Resources Inc.    12/20/00        2187/212
Tameka Williams                                     Expedition Natural Resources Inc.    12/20/00        2187/212
Lemetris Williams                                   Expedition Natural Resources Inc.    12/20/00        2187/212
La Toya Williams Jackson                            Expedition Natural Resources Inc.    12/20/00        2187/218
Stewart Williams, Jr.                               Expedition Natural Resources Inc.    12/20/00        2187/215
Edward Moore                                        Expedition Natural Resources Inc.    12/20/00        2187/209
Oliver Moore                                        Expedition Natural Resources Inc.    12/20/00        2187/206
Melba Moore                                         Expedition Natural Resources Inc.    12/20/00        2187/221
Luther L. Moore                                     Expedition Natural Resources Inc.    12/20/00        2189/337
Karen E. Moore                                      Expedition Natural Resources Inc.    03/05/01        2222/39
Patsy Cox, Receiver for Alvin Lamar Roberts         Expedition Natural Resources Inc.    04/04/01        2222/324
Myrtle Ann Moore Howe                               Expedition Natural Resources Inc.    10/08/02        2570/308
Vernon Wayne Fults                                  Capital Land Services, Inc.          03/11/98        2020/267
Robert G. Whiteside                                 Capital Land Services, Inc.          02/27/98        1796/43
Ronald Sangster                                     Capital Land Services, Inc.          03/10/98        1796/25
J. Whiteside, Ind. & as Trustee                     Capital Land Services, Inc.          03/18/98        1796/40
Drew Whiteside & R. Nolte                           Capital Land Services, Inc.          03/18/98        1796/37
Gordon W. Sangster                                  Capital Land Services, Inc.          03/18/98        1796/17
Hibernia Nat'l Bank, Ttee Eithel Barker Trst A & B  Expedition Natural Resources Inc.    10/20/99        2017/1
John T. Wells, a married man                        Capital Land Services, Inc.          07/14/98        1851/221

                    WELL NAME                                    WI                         NRI          LOCATION
JO ANN SCOTT #1L                                              1.0000000                  0.8142361       M.S. Ussery Survey A-722
JO ANN SCOTT #1U                                              1.0000000                  0.8142361       M.S. Ussery Survey A-722

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
James Brandon Cullum                                Expedition Natural Resources Inc.    05/11/01        2245/4
Brenda Hayner Moon                                  Expedition Natural Resources Inc.    05/11/01        2245/1
James Earl Fults                                    Expedition Natural Resources Inc.    05/14/01        2262/15
Jerry D. Fults                                      Expedition Natural Resources Inc.    05/14/01        2262/14
Francis Paul Cullum                                 Expedition Natural Resources Inc.    06/01/01        2262/16
Vernon Wayne Fults                                  Expedition Natural Resources Inc.    12/13/99        2059/290
James Brandon Cullum                                Expedition Natural Resources Inc.    12/20/99        2040/319
Brenda Hayner Moon                                  Expedition Natural Resources Inc.    12/20/99        2040/325
Paul F. Cullum aka Francis P. Cullum                Expedition Natural Resources Inc.    12/20/99        2044/20
Jo Ann Fults Scott                                  Expedition Natural Resources Inc.    01/05/00        2048/98
James E. Fults                                      Expedition Natural Resources Inc.    01/20/00        2075/79
Jerry Doyle Fults                                   Expedition Natural Resources Inc.    01/20/00        2075/78
Karen D. Fritschi a/k/a Karen Carol Darnell         Expedition Natural Resources Inc.    03/15/00        2091/228
</TABLE>
                          Exhibit A. Part 1, Page -12-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>

                    WELL NAME                                    WI                         NRI          LOCATION
FLOYD WILSON OU #1A                                           1.0000000                  0.7123406       J. Maximillan Survey A-444
FLOYD WIL GU #1L TA                                           1.0000000                  0.0000000       J. Maximillan Survey A-444

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Floyd Wilson, et ux, Catherine Wilson               Atlantic Refining Company            10/28/1957      504/377
Herman Wilson, et ux, Vivian Wilson                 Atlantic Refining Company            10/28/1957      505/217
Charles Wilson, et ux, Ruby Wilson                  Atlantic Refining Company            10/28/1957      506/135
Henry Wilson, et ux, Lucille Wilson                 Atlantic Refining Company            10/30/1957      506/240
Virgie Lee Wilson                                   Atlantic Refining Company            1/3/1958        507/121
Lucille Woolen, et al                               Tom Worsham                          2/10/1958       508/600
Dollie Bell Key, a widow                            Atlantic Refining Company            10/11/1957      506/251
Constance Key Wandel, a feme sole                   Tom Worsham                          10/11/1957      506/242
Mrs. Rae Key, et al                                 Tom Worsham                          10/29/1957      508/586
Lillie Bell Mitchell and husband, Leon Wilson       Jack H. Meeks                        4/6/1950        356/211
Miss R. V. Wilson, a feme sole                      Jack H. Meeks                        4/14/1950       356/213
Erma Lee Brown and husband Tom Brown                Jack H. Meeks                        3/18/1950       356/209
Effie Cook and husband Opalree Cook                 Jack H. Meeks                        3/18/1950       356/207
Hollie Wilson and wife, Corene Wilson               Jack H. Meeks                        3/23/1950       356/205

                    WELL NAME                                    WI                         NRI          LOCATION
BALDWIN OU #2                                                 0.7910000                  0.5972825       W. Williams Survey A-757

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Francis Scott Baldwin                               Mrs. H. H. Newton                    7/17/1952       403/329
Cleora Baskett, et al                               Robert Graham Cherry                 8/8/1955        458/22
W. L. Rudd, Sr.                                     Barnwell Production Company          8/8/1955        458/128
Carmena Morton, et vir                              H. H. Newton                         1/16/1952       396/310
Ida Alexander, et vir                               H. H. Newton                         3/12/1952       396/538
W. L. Rudd, Jr., et al                              Barnwell, Inc.                       11/9/1964       605/85
Dora Mae Young                                      H. H. Newton                         4/14/1952       470/555
Mary Young Walter, et vir                           H. H. Newton                         12/12/1951      397/23
Johnnie Mae Young Thomas                            Barnwell, Inc.                       8/17/1965       616/164
O. C. Manning                                       Petroleum Production Mgmt., Inc.     3/21/1988       1210/97
Jean Cornelius                                      Petroleum Production Mgmt., Inc.     4/4/1988        1210/91
Ella M. Jennings Williams                           Petroleum Production Mgmt., Inc.     3/21/1988       1210/101
Christine Jennings Wilder                           Petroleum Production Mgmt., Inc.     8/17/1988       1210/42
Willie Raymond Taylor                               Petroleum Production Mgmt., Inc.     3/21/1988       1210/83
Issac Taylor                                        Petroleum Production Mgmt., Inc.     3/21/1988       1210/85
Littie Mae Manning Richardson                       Petroleum Production Mgmt., Inc.     3/17/1988       1210/67
Pauline Manning Reeves                              Petroleum Production Mgmt., Inc.     3/17/1988       1210/71
Lavern Taylor Powell                                Petroleum Production Mgmt., Inc.     3/21/1988       1210/81
Ermma Jean Taylor                                   Petroleum Production Mgmt., Inc.     3/21/1988       1210/93
Willett McInham                                     Petroleum Production Mgmt., Inc.     3/21/1988       1210/61
Travis Leon Manning                                 Petroleum Production Mgmt., Inc.     3/17/1988       1210/40
Ray Dean Manning                                    Petroleum Production Mgmt., Inc.     3/17/1988       1210/79
Ernest Lee Jennings                                 Petroleum Production Mgmt., Inc.     3/21/1988       1210/103
Howard Manning                                      Petroleum Production Mgmt., Inc.     3/17/1988       1210/69
Mary Louise Manning Hall                            Petroleum Production Mgmt., Inc.     3/17/1988       1210/77
Anna Lois Humble                                    Petroleum Production Mgmt., Inc.     3/21/1988       1210/57
</TABLE>
                          Exhibit A. Part 1, Page -13-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Glenda Beryl Manning Flye & Louis Bernard Manning   Petroleum Production Mgmt., Inc.     10/21/1988      1210/34
Cora Lee Jennings                                   Petroleum Production Mgmt., Inc.     3/21/1988       1210/99
Betty Jean Manning Rush & Ethel Lee Manning         Petroleum Production Mgmt., Inc.     3/17/1988       1210/73
India Anna Black                                    Petroleum Production Mgmt., Inc.     3/21/1988       1210/89
Glenda Beryl Manning Flye                           Petroleum Production Mgmt., Inc.     3/21/1988       1210/44
Barbara Delais Barr                                 Petroleum Production Mgmt., Inc.     3/21/1988       1210/87
Olen David Manning                                  Petroleum Production Mgmt., Inc.     3/24/1988       1210/59
Olen Manning, Jr.                                   Petroleum Production Mgmt., Inc.     10/21/1988      1240/667
Mae Kathryn Manning                                 Petroleum Production Mgmt., Inc.     3/21/1988       1210/36
Floyd Manning                                       Petroleum Production Mgmt., Inc.     3/21/1988       1210/65
Lonnie Calvin Armstrong                             Petroleum Production Mgmt., Inc.     3/21/1988       1210/38
Franklin Charles Manning                            Petroleum Production Mgmt., Inc.     3/17/1988       1210/75
Elessie Mae Leffal                                  Petroleum Production Mgmt., Inc.     3/21/1988       1210/63
May Ann Jennings                                    Petroleum Production Mgmt., Inc.     3/21/1988       1210/95
Willie Marie Manning Fisher                         Circle "M" Energy, Inc.              12/10/1990      1263/687
Bertha O. Jennings                                  Petroleum Production Mgmt., Inc.     12/26/1988      1268/477
Hagen Taliaferro                                    Circle "M" Energy, Inc.              11/8/1989       1232/5
Richard Stringer and Cathy Stringer, HW             Circle "M" Energy, Inc.              11/8/1989       1232/11
Scott Vaughn, et al                                 Circle "M" Energy, Inc.              11/8/1989       1232/8
Ella Johnson Webster                                Circle "M" Energy, Inc.              7/7/1990        1272/638
Fay Johnson Smith                                   Circle "M" Energy, Inc.              7/7/1990        1272/632
The State Nat'l Bank of Caddo Mills                 Circle "M" Energy, Inc.              7/7/1990        1272/617
Myrtle Johnson Nickerson                            Circle "M" Energy, Inc.              7/7/1990        1272/626
Lamar Johnson                                       Circle "M" Energy, Inc.              7/7/1990        2372/629
Acie Johnson, Jr.                                   Circle "M" Energy, Inc.              07/07/060       1272/620
Dorothy Johnson Daniels                             Circle "M" Energy, Inc.              7/7/1990        1272/623

                    WELL NAME                                    WI                         NRI          LOCATION
BARKER LENTZ OU #5                                            0.8568745                  0.6417628       Wm. Smith Survey A-21

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Joseph C. Lane, et al                               D. G. Dunbar                         4/1/1947        311/478
Lillie Rutherford, et al                            D. G. Dunbar                         4/1/1947        311/481
Lelie Fryer, et al                                  D. G. Dunbar                         4/1/1947        311/516

                    WELL NAME                                    WI                         NRI          LOCATION
F. W. BLOCKER EST. GU #2                                      0.8747066                  0.6386923       T. H. Borden Survey A-124
BOSH OU #1                                                    0.7982500                  0.6110988       T. H. Borden Survey A-124
BOSH OU #2L                                                   1.0000000                  0.7648229       T. H. Borden Survey A-124

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Rosina P. Blocker, a widow, et al                   W. W. Lincoln                        7/18/1956       477/245
Mrs. Ethel Coleman, a widow                         W. W. Lincoln                        9/25/1956       479/115
B. C. Rain, et ux                                   Barnwell Production Company          2/19/1957       488/408
Harrison Wilson, et ux                              Barnwell Production Company          2/18/1957       488/441
J. A. Fults, et al                                  W. W. Lincoln                        8/7/1956        477/249
J. A. Fults, et ux                                  W. W. Lincoln                        8/7/1956        477/253

                    WELL NAME                                    WI                         NRI          LOCATION
BLKR WARE (SUN) GU #4                                         0.9265808                  0.6981342       W. Williams Survey A-757
</TABLE>
                          Exhibit A. Part 1, Page -14-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
BLOCKER WARE GU #2                                            0.8437271                  0.6353849       W. Williams Survey A-757
BLOCKER WARE GU #3 TA                                         0.8502773                  0.6527147       W. Williams Survey A-757

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Sam B. Hall, Jr., et al                             Barnwell Production Company          12/6/1957       504/510
E. T. Blocker, et al                                Barnwell Production Company          4/16/1957       492/336
Viva Belle Boothe, et al                            J. G. Barker, et al                  11/8/1956       484/349
Harold F. Gill, et al                               J. G. Barker, et al                  11/9/1956       484/346
E. T. Blocker, et al                                Barnwell Production Company          4/16/1957       492/345
E. T. Blocker, et al                                W. W. Lincoln                        4/18/1956       477/245
Oscar Cargill                                       Jack H. Meeks                        4/3/1950        356/219
Lillian McCarty, et al                              Barnwell Production Company          12/20/1956      484/269
J. W. Beasley, et ux                                Barnwell Production Company          2/6/1957        492/630
E. S. Gryder, et ux                                 Barnwell Production Company          2/6/1957        492/634
Guy McCarty, et al                                  Barnwell Production Company          1/26/1957       487/415
Murray McCarty                                      Barnwell Production Company          1/26/1957       487/446
Kenneth W. McCarty                                  Barnwell Production Company          1/26/1957       488/2
James Wyatt Newton                                  Barnwell Production Company          10/28/1957      502/612
John Henry Newton                                   Barnwell Production Company          10/28/1957      502/617
Elizabeth Newton, et al                             Jack H. Meeks                        4/25/1950       359/81
Verna Cargill Young, Indiv. & as Guardian           Barnwell Production Company          12/6/1957       504/506

                    WELL NAME                                    WI                         NRI          LOCATION
BLOCKER HEIRS GU #4                                           1.0000000                  0.8125000       M.S. Ussery Survey A-722
BLOCKER HEIRS OU #4                                           1.0000000                  0.7975290       M.S. Ussery Survey A-722

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Annabel Pagan Blakey                                Expedition Natural Resources Inc.    12/23/99        2038/196
Frances B. Prokopis                                 Expedition Natural Resources Inc.    12/24/99        2038/199
Dorothy Kay McGrath Babbitt                         Expedition Natural Resources Inc.    12/24/99        2040/205
John Mark Blocker                                   Expedition Natural Resources Inc.    07/09/04        2903/316
Eugene B. Harvey, Jr.                               Expedition Natural Resources Inc.    01/14/00        2047/211
Nonnie Sue Blocker Dierck                           Expedition Natural Resources Inc.    01/12/00        2047/208
Lillian D. Blocker, Trustee                         Expedition Natural Resources Inc.    01/31/00        2052/236
Harry Eugene Blocker, III                           Expedition Natural Resources Inc.    01/12/00        2052/222
Carol Harvey Coggeshall                             Expedition Natural Resources Inc.    01/14/00        2059/124
James Ford Harvey                                   Expedition Natural Resources Inc.    07/09/04        2938/268
John Stewart Harvey                                 Expedition Natural Resources Inc.    07/09/04        2938/264
Collin C. Diboll Private Foundation                 Expedition Natural Resources Inc.    01/25/00        2056/219
Dale Lawrence Harvey                                Expedition Natural Resources Inc.    01/28/00        2056/229
Tracy Snyder                                        Expedition Natural Resources Inc.    02/03/00        2056/236
Caren Harvey Prothro                                Expedition Natural Resources Inc.    07/09/04        2899/184
Ralph O. Harvey, III                                Expedition Natural Resources Inc.    07/09/04        2938/226
Jane Harvey Parker                                  Expedition Natural Resources Inc.    01/28/00        2059/131
Lynda Harvey Ireland                                Expedition Natural Resources Inc.    01/25/00        2071/229
Ware Development Company, LLC                       Expedition Natural Resources Inc.    10/15/01        2334/25
Brazee Family Living Trust                          Expedition Natural Resources Inc.    11/27/01        2349/203
Lloyd Lochridge, Jr.                                Expedition Natural Resources Inc.    12/11/01        2365/314
</TABLE>
                          Exhibit A. Part 1, Page -15-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
                    WELL NAME                                    WI                         NRI          LOCATION
M. CADENHEAD GU #1C                                           0.8595747                  0.6691143       W. Williams Survey A-757
M CADENHEAD GU #1T TA                                         0.8595747                  0.6691143       W. Williams Survey A-757

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Mrs. Maude Cadenhead, et al                         F. A. Adair                          0/8/09/55       459/63
Lillian McCarty, et al                              Barnwell Production Company          12/20/1956      484/276
Oscar Cargill                                       Jack H. Meeks                        4/3/1950        356/219
Elizabeth Newton, et al                             Jack H. Meeks                        4/25/1950       359/81
Guy McCarty, et al                                  Barnwell Production Company          1/26/1957       487/413
Murray McCarty                                      Barnwell Production Company          1/26/1957       487/446
Kenneth McCarty                                     Barnwell Production Company          1/26/1957       488/2
Mrs. Maude Cadenhead, et al                         Hudson Gas and Oil Company           4/14/1955       453/193
Bishop Woods, et ux                                 J. G. Barker                         9/6/1956        478/531
Eddie Woods                                         C. A. Mclean                         6/30/1956       475/18
Winston Taylor                                      Barnwell Production Company          7/15/1957       496/280
A. C. David                                         Barnwell Production Company          7/15/1957       496/276
Jimmie Woods, et ux                                 Barnwell Production Company          5/6/1957        493/128
Henry Woods, et ux                                  Barnwell Production Company          5/6/1957        493/131
Mary Ella Eggins, et vir                            Barnwell Production Company          5/6/1957        493/425
Irene Hobdy, et vir                                 Barnwell Production Company          5/6/1957        493/497
Ida Woods, a feme sole                              Barnwell Production Company          05/06/557       493/125
Joseph Woods, et ux                                 Barnwell Production Company          5/6/1957        493/122
John Woods, et ux                                   Barnwell Production Company          5/6/1957        493/119
John H. Newton                                      Barnwell Production Company          11/2/1957       503/201
James Wyatt Newton                                  Barnwell Production Company          11/2/1957       503/205
Bishop Woods, et ux                                 H. R. Lavender                       7/21/1956       476/578
Mrs. Ruby Russell, et al                            F. A. Adair, et al                   8/6/1955        458/51
R. V. Newton, et ux                                 F. A. Adair, et al                   8/5/1955        458/59
T. G. Cadenhead, et al                              F. A. Adair, et al                   8/16/1955       460/8
Mrs. Willie Adell McCarty, et al                    F. A. Adair, et al                   10/28/1955      464/186
W. M. McCarty, et ux                                F. A. Adair, et al                   8/3/1955        458/56
Mrs. Maude Cadenhead, et al                         F. A. Adair, et al                   8/9/1955        459/63
Ella Caven                                          F. A. Adair, et al                   8/4/1955        458/48
W. L. Rudd, Sr.                                     Barnwell Production Company          8/8/1955        466/637
Eddie Woods, et ux                                  A. J. Bailey                         4/28/1947       311/230
t. G. Cadenhead, et al                              J. G. Barker                         4/24/1947       312/399
Larney Manning, et al                               J. G. Barker                         4/24/1947       312/397
J. D. Furrh, et al, Trustee                         D. G. Dunbar                         8/16/1944       269/251
Roger V. Whiteside                                  La Gloria Corporation                8/27/1952       407/305

                    WELL NAME                                    WI                         NRI          LOCATION
N. P. COCKRELL GU #1                                          0.8812444                  0.6538017       T. H. Borden Survey A-124

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Rosina P. Blocker, a widow, et al                   H. H. Alvord, III                    3/23/1955       452/73
John Blocker Ware, et ux, et al                     H. H. Alvord, III                    3/24/1955       452/962
Letitia Cockrell, et vir                            D. G. Dunbar                         3/28/1947       313/88
The Harrison-Gregg Nat'l Farm Loan Assoc.           D. G. Dunbar                         4/8/1947        312/323
L. M. Escoe, et us                                  D. G. Dunbar                         3/28/1947       312/298
</TABLE>
                          Exhibit A. Part 1, Page -16-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
J. B. Rogers, Jr., et al                            Jack H. Meeks                        3/2/1950        354/351
James H. Owens, Indiv. & Exec. Est Albert Lee Owen  Barnwell Production Company          12/18/1956      486/1
D. B. Dunn                                          Barnwell Production Company          12/27/1956      486/4
J. C. Dunn                                          Barnwell Production Company          12/27/1956      486/7
Katherine Dunn Rix                                  Barnwell Production Company          12/27/1956      486/10
Mildred Dunn Wilson, et vir                         Barnwell Production Company          12/27/1956      486/13
Alberta Daniels, et al                              R. D. Baskett                        10/1/1957       502/227
German Coleman                                      R. D. Baskett                        12/20/1957      507/209
Clarence Britt, et ux                               Charles S. Riley                     3/26/1955       450/121
James E. Black, et al                               Barnwell Production Company          12/18/1956      486/16
C. E. Black, et ux                                  Barnwell Production Company          12/21/1956      486/21
Sybil Prestridge                                    Barnwell Production Company          12/18/1956      486/27
Roy C. McCoy                                        Barnwell Production Company          12/18/1956      486/32
Betty Lou Black, et al                              Barnwell Production Company          12/18/1956      486/37
Allen R. McCoy                                      Barnwell Production Company          12/18/1956      486/41
A. D. Black, et al                                  Barnwell Production Company          12/18/1956      486/46
Annie Holm Black, et al                             J. Paul Ratliff, Jr.                 5/24/1957       493/613
Melba Black Lane, et vir                            J. Paul Ratliff, Jr.                 5/6/1957        493/451
J. D. Furrh, et al, Trustees                        D. G. Dunbar                         8/16/1944       269/251

                    WELL NAME                                    WI                         NRI          LOCATION
GEORGE NEAL #2                                                0.7910000                  0.5342355       J. Maximillan Survey A-444

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Mary Anne Convis, et vir                            Tom Worsham                          7/13/1957       500/1
Lottie Crawley, a widow                             Tom Worsham                          7/13/1957       500/6
Elouise Reddit, et vir, etal                        Tom Worsham                          7/13/1957       500/11
James B. Crawley                                    Tom Worsham                          7/13/1957       500/16
Charlotte Thomas, et vir                            Tom Worsham                          7/13/1957       500/21
Ethel M. Wilson, et vir                             Tom Worsham                          7/13/1957       500/26
Benjamin R. Crawley                                 Tom Worsham                          7/13/1957       500/30
Clinton Dewitt Crawley                              Tom Worsham                          7/13/1957       500/35
Eva Crawley Owens                                   Tom Worsham                          7/13/1957       500/40
Minnie McKay, et al                                 Tom Worsham                          7/13/1957       500/45
Dollie Marie Nielson, a widow                       Tom Worsham                          7/13/1957       500/420
Reba Niendoroff, et vir, et al                      Tom Worsham                          7/13/1957       501/359
Catherine M. Villiers, et vir                       Tom Worsham                          7/13/1957       504/29
Murray J. Cadenhead, Indiv. & as Guardian           The Atlantic Refining Co.            5/31/1958       512/49
M. J. Cadenhead, et al                              Tom Worsham                          7/13/1957       513/96

                    WELL NAME                                     WI                         NRI         LOCATION
E. LINDSAY OU #1 TA                                            0.9106820                  0.6833929      Alex Allbright Survey, A-24

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Martha Ross Young, Guardian Est. John Micael Ross   Barnwell, Inc.                       7/3/1967        643/170
Robbie Lois R. Lock                                 Barnwell, Inc.                       6/24/1967       643/170
Bonnie F. Ross, et al                               Barnwell, Inc.                       6/23/1967       643/122
Cecil Ross                                          Barnwell, Inc.                       6/24/1967       643/174
American Petroleum Corporation                      Barnwell, Inc.                       6/12/1967       646/564
J. O. Brooks Trust Company                          J. J. Williams                       2/28/1966       625/674
</TABLE>
                          Exhibit A. Part 1, Page -17-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Helen Lindsey Fraley, Indiv/Trustee Tom C. Lindsay  J. J. Williams                       12/23/1965      625/661
Mabelle Scott Lucas, et vir                         J. J. Williams                       12/23/1965      625/667
Sam B. Hall                                         J. J. Williams                       12/23/1965      625/664
J. R. Woodley, et ux                                J. J. Williams                       3/23/1966       627/562
Moss Ross                                           J. J. Williams                       3/24/1966       626/34
Mrs. Jane Smith, et al                              Jack J. Williams                     4/1/1966        626/69
Temple Ross, et al                                  J. J. Williams                       4/21/1966       627/569
Luella Smith Richardson, et al                      Jack J. Williams                     4/21/1966       627/574

                    WELL NAME                                    WI                         NRI          LOCATION
WASKOM #1-C                                                   0.7314280                  0.5063841       E. Pollock Survey A-567

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Jennie Williams                                     Morton Taylor                        7/19/1949       340/251
Jessie B. Holmes                                    Morton Taylor                        8/24/1949       342/164
Cessie Williams Hardeman                            Morton Taylor                        7/24/1949       342/167
Eliza Holmes Gillespie                              Morton Taylor                        8/24/1949       342/162
Willie Mae Holmes Hawkins, et vir                   Morton Taylor                        8/24/1949       342/156
J. D. Furrh, et al                                  Midstates Oil Corporation            2/9/1951        376/207
First National Bank of Longview                     Midstates Oil Corporation            3/6/1951        376/200
Austin F. Akin, et ux                               Midstates Oil Corporation            4/23/1951       378/539

                    WELL NAME                                    WI                         NRI          LOCATION
WASKOM #8                                                     0.7314280                  0.5138161       Harrison Survey A-329

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Johnnie Turner, et al                               L. K. Townsend, et al                10/7/1954       441/193
Blanche Epps, et vir                                L. K. Townsend, et al                10/7/1954       441/357
A. G. Birdwell, et al                               David Crowe, Trustee                 2/9/1955        448/438
Winston Taylor                                      David Crowe, Trustee                 2/24/1956       468/385
Dollie Bell Key, et al                              David Crowe, Trustee                 2/23/1956       468/533
Jennie Williams                                     Morton Taylor                        7/19/1949       340/251
Jessie B. Holmes                                    Morton Taylor                        8/24/1949       342/164
Cessie Williams Hardeman, et vir                    Morton Taylor                        7/24/1949       342/167
Eliza Holmes Gillespie, et vir                      Morton Taylor                        8/24/1949       342/162
Willie Mae Holmes, et vir                           Morton Taylor                        8/24/1949       342/156
J. D. Furrh, et al                                  Midstates Oil Corporation            2/9/1951        376/207
First National Bank of Longview                     Midstates Oil Corporation            3/6/1951        376/200
Austin F. Akin, et ux                               Midstates Oil Corporation            4/23/1951       378/539

                    WELL NAME                                    WI                         NRI          LOCATION
WASKOM A-4/A-2R                                               0.7314280                  0.5599997       R. L. Wright Survey A-790

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
John D. Abney, et ux                                Stanolind Oil and Gas Company        7/14/1944       267/134

                    WELL NAME                                    WI                         NRI          LOCATION
MARGIE #1                                                     0.200000                   0.163846        M.S. Ussery A-722
MARGIE #2                                                     0.300000                   0.245522        M.S. Ussery A-722
MARGIE #3                                                     0.300000                   0.245522        M.S. Ussery A-722
</TABLE>
                          Exhibit A. Part 1, Page -18-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Gaylord Lawless, Sr.                                Expedition Natural Resources Inc.    05/04/01        2242/345
Reuben R. Paulsen, Trustee Reuben R. Paulson Tr.    Penn Virginia Oil & Gas, L.P.        02/18/04        281/208
John M. Frazier et ux, Ernestine Frazier            Penn Virginia Oil & Gas, L.P.        02/02/04        2827/209
Polly Cargill                                       Expedition Natural Resources Inc.    05/29/01        2275/79
James Youree Lancaster                              Expedition Natural Resources Inc.    05/29/01        2275/83
Charles Eugene O'Brien                              Expedition Natural Resources Inc.    06/20/01        2275/74
William Scott Lancaster                             Expedition Natural Resources Inc.    05/29/01        2275/87
Edith Bradshaw                                      Expedition Natural Resources Inc.    06/20/01        2275/91
Martha O'Brien                                      Expedition Natural Resources Inc.    06/20/01        2275/96
Charlie M. Bradshaw, III                            Expedition Natural Resources Inc.    06/20/01        2275/101
Will Y. Lancaster, II                               Expedition Natural Resources Inc.    05/29/01        2279/202
Snider Industries, Inc.                             Expedition Natural Resources Inc.    10/30/01        2230/325
City of Marshall/Marshall Public Library            Expedition Natural Resources Inc.    08/08/01        2472/341
Hibernia Nat'l Bank Tr/Roberta Hockwald             Expedition Natural Resources Inc.    12/19/01        2372/123
Reuben R. Paulsen                                   Penn Virginia Oil & Gas, L.P.        08/25/04        2916/308
Samuel M. Lawless                                   Penn Virginia Oil & Gas, L.P.        10/15/04        3000/278
Patsy Cox Rec. for Syble Reeves Alexander Shockley  Penn Virginia Oil & Gas, L.P.        07/28/04        2894/227
Newton W. Dorsett, Trustee Dorsett Invest. Trust    Penn Virginia Oil & Gas, L.P.        04/02/04        2864/303
Mary Lee Hodge                                      Penn Virginia Oil & Gas, L.P.        04/16/04        2872/123
Tena Kelly Kirk                                     Penn Virginia Oil & Gas, L.P.        04/16/04        2874/126
Jill Alice Curtis                                   Penn Virginia Oil & Gas, L.P.        04/16/04        2872/132
Hibernia Nat'l Bank/Joe Lewis Scholarship           Penn Virginia Oil & Gas, L.P.        02/18/04        2827/204
Wiley College                                       Penn Virginia Oil & Gas, L.P.        04/22/04        2867/178
Margie H. Rather                                    Expedition Natural Resources Inc.    07/20/01        2287/1
William H. Huffman                                  Expedition Natural Resources Inc.    07/26/01        2286/336
W. F. Palmer                                        Expedition Natural Resources Inc.    07/26/01        2286/324
Mary Elizabeth Finley                               Expedition Natural Resources Inc.    07/20/01        2286/342
Jeanie H. Westmoreland                              Expedition Natural Resources Inc.    07/20/01        2287/21
J. W. Hunt                                          Expedition Natural Resources Inc.    08/08/01        2286/315
William M. Comegys, Jr.                             Expedition Natural Resources Inc.    08/03/01        2294/309

                    WELL NAME                                    WI                         NRI          LOCATION
BRADSHAW O'BRIEN #1                                           0.200000                   0.163146        M.S. Ussery A-722
BRADSHAW O'BRIEN #2                                           0.300000                   0.244720        M.S. Ussery A-722
BRADSHAW O'BRIEN #3                                           0.300000                   0.244720        M.S. Ussery A-722

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Jerry A. Cargill, Indiv. & as Indep. Admin.         Penn Virginia Oil & Gas, L.P.        01/26/04        2872/138
Jack L. Cargill, Jr.                                Penn Virginia Oil & Gas, L.P.        01/26/04        2872/135
Martha O'Brien                                      Expedition Natural Resources Inc.    05/08/01        2262/59
Charles Eugene O'Brien                              Expedition Natural Resources Inc.    05/08/01        2262/51
Charlie M. Bradshaw, III                            Expedition Natural Resources Inc.    05/08/01        2262/47
Edith Bradshaw                                      Expedition Natural Resources Inc.    05/08/01        2262/55
Charles Eugene O'Brien                              Expedition Natural Resources Inc.    08/11/01        2294/304
Charlie M. Bradshaw, III                            Expedition Natural Resources Inc.    08/11/01        2294/345
Edith Padgett Bradshaw                              Expedition Natural Resources Inc.    08/11/01        2295/1
Martha O'Brien                                      Expedition Natural Resources Inc.    08/11/01        2299/278
William Scott Lancaster                             Expedition Natural Resources Inc.    10/30/01        2336/161
</TABLE>
                          Exhibit A. Part 1, Page -19-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Will Y. Lancaster, II                               Expedition Natural Resources Inc.    10/24/01        2336/149
Edith Padgett Bradshaw                              Expedition Natural Resources Inc.    10/24/01        2330/314
Alfred Glassell Comegys                             Expedition Natural Resources Inc.    11/01/01        2336/271
James Youree Lancaster                              Expedition Natural Resources Inc.    10/30/01        2336/279
John Stafford Comegys                               Expedition Natural Resources Inc.    01/15/02        2372/92
Ripley Scott Comegys                                Expedition Natural Resources Inc.    01/15/02        2372/89
Willa Dean Kelly Roberts                            Expedition Natural Resources Inc.    06/11/01        2275/123
Hibernia Nat'l Bank, UAW L. A. Fugler               Expedition Natural Resources Inc.    09/26/01        2312/25
Jeanie H. Westmoreland                              Expedition Natural Resources Inc.    08/15/01        2294/326
Mary Elizabeth Finley                               Expedition Natural Resources Inc.    08/15/01        2294/321
Margie H. Rather                                    Expedition Natural Resources Inc.    08/15/01        2294/330
William M. Huffman                                  Expedition Natural Resources Inc.    08/15/01        2294/335
W. F. Palmer                                        Expedition Natural Resources Inc.    08/15/01        2294/340
Margie H. Rather                                    Expedition Natural Resources Inc.    07/20/01        2287/1
William H. Huffman                                  Expedition Natural Resources Inc.    07/26/01        2286/336
W. F. Palmer                                        Expedition Natural Resources Inc.    07/26/01        2286/324
Mary Elizabeth Finley                               Expedition Natural Resources Inc.    07/20/01        2286/342
Jeanie H. Westmoreland                              Expedition Natural Resources Inc.    07/20/01        2287/21
J. W. Hunt                                          Expedition Natural Resources Inc.    08/08/01        2286/315
William M. Comegys, Jr.                             Expedition Natural Resources Inc.    08/03/01        2294/309

                    WELL NAME                                    WI                         NRI          LOCATION
PATSY KEYS #1                                                 0.200000                   0.164728        Lucinda Wallace A-744
PATSY KEYS #2                                                 0.300000                   0.247092        Lucinda Wallace A-744
PATSY KEYS #3                                                 0.300000                   0.247092        Lucinda Wallace A-744
PATSY KEYS #4                                                 0.300000                   0.248662        Lucinda Wallace A-744
PATSY KEYS #5                                                 0.300000                   0.248662        Lucinda Wallace A-744
PATSY KEYS #6                                                 0.300000                   0.248662        Lucinda Wallace A-744

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Patsy Cox Rec for Syble Reeves Alexander Shockley   Penn Virginia Oil & Gas, L.P.        07/28/04        2894/227
Sally Grey Sain                                     Penn Virginia Oil & Gas, L.P.        02/03/04        2829/285
Martha Jane Bellomy                                 Expedition Natural Resources Inc.    08/21/01        2299/291
Bobby R. Jones, et ux                               Expedition Natural Resources Inc.    07/14/01        2299/283
Warren F. Keys, Jr.                                 Expedition Natural Resources Inc.    12/12/01        2372/79
Helen Smith                                         Expedition Natural Resources Inc.    09/13/01        2330/308
Arveal Culpepper                                    Expedition Natural Resources Inc.    09/13/01        2312/13
Linda Culpepper Everett                             Expedition Natural Resources Inc.    09/13/01        2312/40
Carol Dawn Reeves Fruge                             Expedition Natural Resources Inc.    09/13/01        2312/16
Charles Edward Knighten                             Expedition Natural Resources Inc.    09/13/01        2312/19
James Donald McBride                                Expedition Natural Resources Inc.    09/13/01        2312/30
Martha Jane K. Lockhart                             Expedition Natural Resources Inc.    09/13/01        2312/44
Billie Mac McBride                                  Expedition Natural Resources Inc.    09/13/01        2312/10
Linda Lou Smith L. Hickey                           Expedition Natural Resources Inc.    09/13/01        2319/322
Kira Hoff                                           Expedition Natural Resources Inc.    09/13/01        2312/37
Walter C. McBride                                   Expedition Natural Resources Inc.    09/13/01        2319/345
Mary McBride McConathy                              Expedition Natural Resources Inc.    09/13/01        2319/330
Nedra Smith Vines                                   Expedition Natural Resources Inc.    09/13/01        2319/333
G. B. Smith, Jr.                                    Expedition Natural Resources Inc.    09/13/01        2319/302
Joyce Roe                                           Expedition Natural Resources Inc.    09/13/01        2312/33
</TABLE>
                          Exhibit A. Part 1, Page -20-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Charles Dannhaeuser & Clair                         Expedition Natural Resources Inc.    09/27/01        2336/1/85
Jerry Shaw McBride                                  Expedition Natural Resources Inc.    09/13/01        2330/319
Shirley Burt Smith                                  Expedition Natural Resources Inc.    09/13/01        2330/311
Ross D. Kennedy & Sylvia B. Kennedy                 Expedition Natural Resources Inc.    09/27/01        2330/341
Nancy Lynn Gill                                     Expedition Natural Resources Inc.    09/13/01        2349/244
Eloise Bamburg                                      Expedition Natural Resources Inc.    09/13/01        2372/107
Colleen Reeves Anderson                             Expedition Natural Resources Inc.    09/13/01        2403/208
T. J. Taylor, III                                   Expedition Natural Resources Inc.    10/10/01        2336/197
Charlie M. Bradshaw, III                            Expedition Natural Resources Inc.    10/23/01        2336/189
Charles Eugene O'Brien                              Expedition Natural Resources Inc.    10/23/01        2336/193
Edith Bradshaw                                      Expedition Natural Resources Inc.    10/23/01        2336/204
Martha O'Brien                                      Expedition Natural Resources Inc.    10/23/01        2336/177
Sherwood Lee McBride                                Penn Virginia Oil & Gas, L.P.        02/05/04        2810/217
Reuben R. Paulsen, Trustee Reuben R. Paulson Tr.    Penn Virginia Oil & Gas, L.P.        09/22/04        2935/98
W. H. Newton, III                                   Penn Virginia Oil & Gas, L.P.        12/22/04        N/A
Peggy Ann Newton James                              Penn Virginia Oil & Gas, L.P.        12/22/04        N/A
Nigel Newton                                        Penn Virginia Oil & Gas, L.P.        12/22/04        N/A
Helen Ullom Wolfe                                   Penn Virginia Oil & Gas, L.P.        01/15/05        N/A
Dawn Phillips Oros                                  Penn Virginia Oil & Gas, L.P.        01/05/05        N/A
Carrie Phillips Palumbo                             Penn Virginia Oil & Gas, L.P.        01/05/05        N/A
Billie Sue Ullom Lopez                              Penn Virginia Oil & Gas, L.P.        01/05/05        N/A
Carrie Newton                                       Penn Virginia Oil & Gas, L.P.        01/05/05        N/A
Charles Howard Newton                               Penn Virginia Oil & Gas, L.P.        01/12/05        N/A
David Elia Newton                                   Penn Virginia Oil & Gas, L.P.        01/05/05        N/A
Dennis Michael Newton                               Penn Virginia Oil & Gas, L.P.        01/05/05        N/A
Carolyn Newton H. Shadwick                          Penn Virginia Oil & Gas, L.P.        01/05/05        N/A
Bassett W. Ullom                                    Penn Virginia Oil & Gas, L.P.        01/05/05        N/A
John Ullom                                          Penn Virginia Oil & Gas, L.P.        01/05/05        N/A
Lida Ann Newton Craver                              Penn Virginia Oil & Gas, L.P.        01/05/05        N/A
Jerry E. Jones, Sr.                                 Expedition Natural Resources Inc.    11/06/01        2336/200
William Gleason, Trustee Taylor Sain Trust          Penn Virginia Oil & Gas, L.P.        02/03/04        2810/212

                    WELL NAME                                    WI                         NRI          LOCATION
BRYANT #1                                                     0.200000                   0.165877        M.S. Ussery A-722
BRYANT #2                                                     0.300000                   0.248815        M.S. Ussery A-722
BRYANT #3                                                     0.300000                   0.248815        James Cellum A-145

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Gaylord Lawless, Sr.                                Expedition Natural Resources Inc.    05/04/01        2242/345
Gladys Fisher                                       Penn Virginia Oil & Gas, L.P.        01/27/04        2810/205
Jennie Mae Sanders Shiner                           Penn Virginia Oil & Gas, L.P.        01/27/04        2810/194
Josephine Williams Yancy                            Penn Virginia Oil & Gas, L.P.        01/27/04        2810/197
Emmitt Williams                                     Penn Virginia Oil & Gas, L.P.        01/27/04        2810/192
Margarita Wilson                                    Penn Virginia Oil & Gas, L.P.        01/27/04        2810/202
John H. Smith & Shirley G. Smith H&W                Penn Virginia Oil & Gas, L.P.        01/29/04        2810/186
Alex Willis et ux, Sheena Willis                    Penn Virginia Oil & Gas, L.P.        03/03/04        2810/200
Johnny Stephens & Willie Mae Stephens               Penn Virginia Oil & Gas, L.P.        03/03/04        2829/277
William Gleason, Trustee Taylor Sain Trust          Penn Virginia Oil & Gas, L.P.        02/03/04        2810/212
Juanita A. Birdwell                                 Penn Virginia Oil & Gas, L.P.        12/03/05        N/A
William Wesley Owen                                 Penn Virginia Oil & Gas, L.P.        05/18/04        2922/214
</TABLE>
                          Exhibit A. Part 1, Page -21-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Geoffrey Wayne Owen                                 Penn Virginia Oil & Gas, L.P.        05/18/04        2922/217
John Owen                                           Penn Virginia Oil & Gas, L.P.        05/18/04        2922/220
Jose Saul Esquivel & Maria R. Esquivel              Penn Virginia Oil & Gas, L.P.        07/12/04        2885/212
Constantino Simental & Lilia V. Simental            Penn Virginia Oil & Gas, L.P.        07/12/04        2885/214
Nancy M. Bryant                                     Expedition Natural Resources Inc.    11/01/01        2349/193
Emma Jean Bridewell                                 Penn Virginia Oil & Gas, L.P.        05/18/04        2872/102
Ruby Earl Neal                                      Penn Virginia Oil & Gas, L.P.        05/18/04        2872/112
Marketta Lamberth McNatt Brown                      Penn Virginia Oil & Gas, L.P.        04/28/04        2872/42
Jim McNatt, aka James Malcolm McNatt                Penn Virginia Oil & Gas, L.P.        04/28/04        2877/46
Nancy Anita McNatt Moore                            Penn Virginia Oil & Gas, L.P.        04/28/04        2877/50
Whiteside Charitable Trust II                       Penn Virginia Oil & Gas, L.P.        01/05/05        N/A
Gordon W. Sangster                                  Penn Virginia Oil & Gas, L.P.        01/05/05        3045/95
Ronald H. Sangster                                  Penn Virginia Oil & Gas, L.P.        01/05/05        3045/82
James A. Ogden & Betty J. Ogden                     Penn Virginia Oil & Gas, L.P.        06/08/04        2872/129
Sally Grey Sain                                     Penn Virginia Oil & Gas, L.P.        02/03/04        2829/285
Thomas N. Jernigan                                  Expedition Natural Resources Inc.    11/06/01        2349/247
Amanda Luck                                         Expedition Natural Resources Inc.    11/19/01        2372/158
Jessie "George" Wisdom                              Expedition Natural Resources Inc.    11/01/01        2336/138
William "Geoffrey" Wisdom                           Expedition Natural Resources Inc.    11/01/01        2372/75
Joy Lee Madewell                                    Expedition Natural Resources Inc.    11/06/01        2336/169
Mary E. Wyatt                                       Expedition Natural Resources Inc.    11/06/01        2336/181
Barbara A. Thompson                                 Expedition Natural Resources Inc.    11/09/01        2336/227
Nancy M. Bryant                                     Expedition Natural Resources Inc.    11/01/01        2336/173
T. J. Taylor, III                                   Penn Virginia Oil & Gas, L.P.        02/02/04        2810/215
Ruth Nolte                                          Expedition Natural Resources Inc.    08/20/01        2294/315
James E. Whiteside Rev. Trust                       Expedition Natural Resources Inc.    08/20/01        2294/312
Ronald H. Sangster                                  Expedition Natural Resources Inc.    08/18/01        2309/231
The M. Whiteside Charitable Trust II                Expedition Natural Resources Inc.    09/12/01        2330/334
Gordon W. Sangster                                  Expedition Natural Resources Inc.    08/18/01        2312/22
Eddie Dale Davis                                    Penn Virginia Oil & Gas, L.P.        06/08/04        2922/196

                    WELL NAME                                    WI                         NRI          LOCATION
EOG #1                                                        0.200000                   0.159108        M.S. Ussery A-722

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Willa Dean Kelly Roberts                            Expedition Natural Resources Inc.    06/11/01        2275/123
Hibernia Nat'l Bank, UAW L. A. Fugler               Expedition Natural Resources Inc.    09/26/01        2312/25
Jeanie H. Westmoreland                              Expedition Natural Resources Inc.    08/15/01        2294/326
Mary Elizabeth Finley                               Expedition Natural Resources Inc.    08/15/01        2294/321
Margie H. Rather                                    Expedition Natural Resources Inc.    08/15/01        2294/330
William M. Huffman                                  Expedition Natural Resources Inc.    08/15/01        2294/335
W. F. Palmer                                        Expedition Natural Resources Inc.    08/15/01        2294/340
Aurelia Vann                                        Capital Land Services, Inc.          05/07/98        1876/91
Cameron McElroy, et us                              Capital Land Services, Inc.          05/07/98        1829/317
Vermell Jones                                       Penn Virginia Oil & Gas, L.P.        05/15/04        2275/111
Robert Tiller                                       Penn Virginia Oil & Gas, L.P.        03/29/04        2869/265
Mary Tiller                                         Penn Virginia Oil & Gas, L.P.        03/29/04        2869/269
R. Scott Nevins & Delores Nevins                    Penn Virginia Oil & Gas, L.P.        03/29/04        2867/24
Oscar Bennett Jones                                 Penn Virginia Oil & Gas, L.P.        02/28/04        2903/301
Eliza Jane Jones Bacon                              Penn Virginia Oil & Gas, L.P.        02/28/04        2869/259
</TABLE>
                          Exhibit A. Part 1, Page -22-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Amy Lynn Vaughan King                               Penn Virginia Oil & Gas, L.P.        05/02/04        2867/20
KVS Interest, Ltd.                                  Penn Virginia Oil & Gas, L.P.        03/09/04        2867/16
Jonathan Wayne Miller                               Penn Virginia Oil & Gas, L.P.        05/02/04        2924/275
Patricia A. Vaughn                                  Penn Virginia Oil & Gas, L.P.        03/09/04        2891/166
Betty Richardson, Exec. Est. Raoul Richardson       Penn Virginia Oil & Gas, L.P.        02/28/04        2834/112
Noel Diane Jones                                    Penn Virginia Oil & Gas, L.P.        02/28/04        2834/118
Joy King Smith, Exec & Trustee UWO Jane Smith       Penn Virginia Oil & Gas, L.P.        02/28/04        2903/307
Thomas F. Fugler                                    Penn Virginia Oil & Gas, L.P.        03/17/05        N/A
EOG Resources, Inc.                                 Penn Virginia Oil & Gas, L.P.        02/27/04        2813/303
Dennis J. Bowles, Jr, etal                          Penn Virginia Oil & Gas, L.P.        02/23/04        2854/308
Dennis J. Bowles, Jr, etal                          Penn Virginia Oil & Gas, L.P.        02/23/04        2854/304
Bailey Oil Company, Inc.                            Penn Virginia Oil & Gas, L.P.        07/01/04        2922/160
James A. Pickett                                    Penn Virginia Oil & Gas, L.P.        06/30/04        2922/157
Eddie Lee Jones                                     Expedition Natural Resources Inc.    05/16/01        2275/109
Vermell Jones                                       Expedition Natural Resources Inc.    05/16/01        2275/111
Valerie Rickerson                                   Expedition Natural Resources Inc.    05/16/01        N/A
Hibernia Nat'l Bank, Tr/Rebecca Bell                Expedition Natural Resources Inc.    11/27/01        2372/148
Hibernia Nat'l Bank, Tr/Luella Richardson           Expedition Natural Resources Inc.    11/27/01        2372/133
Katherine Harrison Campbell                         Expedition Natural Resources Inc.    10/12/01        2330/288
Dan G. Capers                                       Expedition Natural Resources Inc.    10/16/01        2330/291
James Hammond Mills                                 Expedition Natural Resources Inc.    10/12/01        2330/305
John W. Harrison, Jr.                               Expedition Natural Resources Inc.    10/16/01        2349/251
Jana Lynn Rickerson                                 Penn Virginia Oil & Gas, L.P.        11/22/04        3000/272
Joy Rickerson                                       Penn Virginia Oil & Gas, L.P.        11/22/04        3000/273

                    WELL NAME                                    WI                         NRI          LOCATION
RAINS #1                                                      0.300000                   0.243125        M.S. Ussery A-722
RAINS #2                                                      0.300000                   0.243125        M.S. Ussery A-722
RAINS #3                                                      0.300000                   0.243125        M.S. Ussery A-722
RAINS #4                                                      0.300000                   0.243125        M.S. Ussery A-722
RAINS #5                                                      0.300000                   0.243125        M.S. Ussery A-722
RAINS #6                                                      0.300000                   0.243125        M.S. Ussery A-722
RAINS #7                                                      0.300000                   0.243125        M.S. Ussery A-722

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Gaylord Lawless, Sr.                                Expedition Natural Resources Inc.    05/04/01        2242/345
James E. Hunter et al                               Expedition Natural Resources Inc.    06/07/01        2275/127
Rosie L. Martin Sparks                              Expedition Natural Resources Inc.    08/13/01        2287/26
Marketta Lamberth McNatt Brown                      Penn Virginia Oil & Gas, L.P.        04/28/04        2872/42
Jim McNatt, aka James Malcolm McNatt                Penn Virginia Oil & Gas, L.P.        04/28/04        2877/46
Linda Chambers-Jones                                Penn Virginia Oil & Gas, L.P.        06/10/04        2885/172
Daniel B. Chambers                                  Penn Virginia Oil & Gas, L.P.        06/11/04        2885/269
Samuel B. Chambers                                  Penn Virginia Oil & Gas, L.P.        06/11/04        2885/175
Henry W. McKenzie                                   Penn Virginia Oil & Gas, L.P.        06/11/04        2885/187
Arnold Wayne Williams                               Penn Virginia Oil & Gas, L.P.        06/11/04        2885/93
Linda McKenzie McCoy                                Penn Virginia Oil & Gas, L.P.        06/11/04        2922/139
Brenda Chambers                                     Penn Virginia Oil & Gas, L.P.        06/11/04        2922/142
Leonard J. Williams                                 Penn Virginia Oil & Gas, L.P.        06/11/04        2922/145
Vicky R. Williams                                   Penn Virginia Oil & Gas, L.P.        06/11/04        2922/148
</TABLE>
                          Exhibit A. Part 1, Page -23-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Maretha Cunningham Adams                            Penn Virginia Oil & Gas, L.P.        06/11/04        2922/163
George W. McKenzie                                  Penn Virginia Oil & Gas, L.P.        06/11/04        2922/169
Theodore M. Williams                                Penn Virginia Oil & Gas, L.P.        06/11/04        2922/112
Sandra Estes                                        Penn Virginia Oil & Gas, L.P.        06/11/04        2922/166
Deborah Barner                                      Penn Virginia Oil & Gas, L.P.        06/11/04        2931/328
Louis Edward Wilson                                 Penn Virginia Oil & Gas, L.P.        06/11/04        2923/123
Johnny S. Wilson                                    Penn Virginia Oil & Gas, L.P.        06/11/04        2922/151
Velma Alexander                                     Penn Virginia Oil & Gas, L.P.        11/30/04        3029/289
Acie Lee Chambers Life Estate                       Penn Virginia Oil & Gas, L.P.        01/25/05        3029/292
James C. Jones aka Ricky Jones                      Penn Virginia Oil & Gas, L.P.        04/08/04        2829/294
Sylvia Towle Woods aka Sylvia Towle                 Penn Virginia Oil & Gas, L.P.        04/08/04        2829/291
Tim T. Ellison aka tim Towle                        Penn Virginia Oil & Gas, L.P.        04/08/04        2827/211
Lois N. Rains                                       Expedition Natural Resources Inc.    06/08/01        2279/184
Bill Rudd, Inc.                                     Penn Virginia Oil & Gas, L.P.        05/03/04        2891/170
Sara P. Rudd, Indiv & as Executric J. B. Rudd Est.  Penn Virginia Oil & Gas, L.P.        05/03/04        2891/172
Youngblood Properties, LP                           Penn Virginia Oil & Gas, L.P.        05/03/04        2898/214
Nancy Anita McNatt Moore                            Penn Virginia Oil & Gas, L.P.        04/28/04        2877/50
Jerry E. Jones, Sr.                                 Expedition Natural Resources Inc.    11/06/01        2336/200
ULTRA DIMENSIONS, an Unincorporated Business
Organization under Trust Agreement dated August
25th, 1997                                          Penn Virginia Oil & Gas, L.P.        02/25/05        N/A

                    WELL NAME                                    WI                         NRI          LOCATION
RICHARDSON #1                                                 0.300000                   0.238308        M.S. Ussery A-722
RICHARDSON #2                                                 0.300000                   0.238308        M.S. Ussery A-722
RICHARDSON #3                                                 0.300000                   0.238308        M.S. Ussery A-722

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Bill Rudd, Inc.                                     Penn Virginia Oil & Gas, L.P.        05/03/04        2891/170
Sara P. Rudd, Indiv & as Executric J. B. Rudd Est.  Penn Virginia Oil & Gas, L.P.        05/03/04        2891/172
Youngblood Properties, LP                           Penn Virginia Oil & Gas, L.P.        05/03/04        2898/214
Jerry E. Jones, Sr.                                 Expedition Natural Resources Inc.    11/06/01        2336/200
Amy Lynn Vaughan King                               Penn Virginia Oil & Gas, L.P.        05/02/04        2867/12
KVS Interest, Ltd.                                  Penn Virginia Oil & Gas, L.P.        03/09/04        2867/8
Jonathan Wayne Miller                               Penn Virginia Oil & Gas, L.P.        05/02/04        2924/271
Patricia A. Vaughn                                  Penn Virginia Oil & Gas, L.P.        03/09/04        2891/158
Mary Lewis Grant                                    Penn Virginia Oil & Gas, L.P.        06/11/04        2877/29
Hibernia National Bank/Luella Richardson            Penn Virginia Oil & Gas, L.P.        11/27/01        2372/128
Hibernia National Bank/Rebecca Bell                 Penn Virginia Oil & Gas, L.P.        11/27/01        2372/143
Hibernia National Bank/Rebecca Bell                 Penn Virginia Oil & Gas, L.P.        11/27/01        2372/148
Hibernia National Bank/Luella Richardson            Penn Virginia Oil & Gas, L.P.        11/27/01        2372/133
Oscar LeeCargill, Trustee Dustin Cargill Trust      Penn Virginia Oil & Gas, L.P.        02/16/04        2832/326
Oscar Lee Cargill, Trustee Chad Cargill Trust       Penn Virginia Oil & Gas, L.P.        02/16/04        2832/330
Oscar Lee Cargill                                   Penn Virginia Oil & Gas, L.P.        02/16/04        2832/318
Oscar Lee Cargill, Trustee Dayton Cargill Trust     Penn Virginia Oil & Gas, L.P.        02/16/04        2832/322
Betty Richardson, Exec. Est. Raoul Richardson       Penn Virginia Oil & Gas, L.P.        02/28/04        2834/94
Joy King Smith aka Joy King Jones                   Penn Virginia Oil & Gas, L.P.        02/28/04        2834/88
Joy King Smith, Exec & Trustee UWO Jane Smith       Penn Virginia Oil & Gas, L.P.        02/28/04        2834/100
Joy King Smith, Exec & Trustee UWO T.P. Smith, Jr.  Penn Virginia Oil & Gas, L.P.        02/28/04        2834/106
James C. Jones aka Ricky Jones                      Penn Virginia Oil & Gas, L.P.        04/08/04        2829/294
</TABLE>
                          Exhibit A. Part 1, Page -24-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Sylvia Towle Woods aka Sylvia Towle                 Penn Virginia Oil & Gas, L.P.        04/08/04        2829/291
Mildred Blalock                                     Penn Virginia Oil & Gas, L.P.        04/08/04        2829/297
Harry Miller Solomon                                Penn Virginia Oil & Gas, L.P.        04/15/04        2877/34
Howard Leigh Solomon                                Penn Virginia Oil & Gas, L.P.        04/15/04        2877/36
Tim T. Ellison aka tim Towle                        Penn Virginia Oil & Gas, L.P.        04/08/04        2827/211
James W. Bell                                       Expedition Natural Resources Inc.    06/11/01        2275/114
Aubrey Bell                                         Expedition Natural Resources Inc.    06/11/01        2275/117
Mary Lewis Grant                                    Expedition Natural Resources Inc.    06/11/01        2286/312
Hibernia Nat'l Bank Tr/Luella Richardson            Expedition Natural Resources Inc.    11/27/01        2372/128
Hibernia Nat'l Bank Tr/Rebecca Bell                 Expedition Natural Resources Inc.    11/27/01        2372/143
Lelia Vaughan, AIF Thomas W. Vaughn                 Expedition Natural Resources Inc.    01/07/02        2659/20
Lelia Vaughan, Martha Vaughan, Ellen Miller         Expedition Natural Resources Inc.    01/07/02        2659/24
Ruth Nolte                                          Expedition Natural Resources Inc.    08/20/01        2294/315
James E. Whiteside Rev. Trust                       Expedition Natural Resources Inc.    08/20/01        2294/312
Ronald H. Sangster                                  Expedition Natural Resources Inc.    08/18/01        2309/231
The M. Whiteside Charitable Trust II                Expedition Natural Resources Inc.    09/12/01        2330/334
Gordon W. Sangster                                  Expedition Natural Resources Inc.    08/18/01        2312/22

                    WELL NAME                                    WI                        NRI           LOCATION
UNDERWOOD #1                                                                                             M.S. Ussery A-722

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Van L. Darthard, Jr.                                Expedition Natural Resources Inc.    10/06/04        3006/6
Lucy Edwards                                        Expedition Natural Resources Inc.    10/06/04        3006/15
Freddie V. Darthard                                 Expedition Natural Resources Inc.    10/06/04        3006/3
Gladdis Green Jones                                 Expedition Natural Resources Inc.    10/06/04        3006/12
Marian D. Armstrong                                 Expedition Natural Resources Inc.    10/17/04        3006/9
Alice Guenther McLean                               Expedition Natural Resources Inc.    10/25/04        2955/185
Diana Heartsill Young                               Expedition Natural Resources Inc.    01/28/03        2581/127
Sandra Engler Gerrie                                Expedition Natural Resources Inc.    07/13/04        2936/344
Kenneth N. Brown                                    Expedition Natural Resources Inc.    11/15/04        2961/58
Rex Brown, Sr.                                      Expedition Natural Resources Inc.    10/26/04        2953/246
Kenneth N. Brown                                    Expedition Natural Resources Inc.    03/29/05        3058/96
Rex Brown, Sr.                                      Expedition Natural Resources Inc.    03/29/05        3058/99
LaVera Washington                                   Expedition Natural Resources Inc.    03/29/05        3069/285
Dorothy Diggs                                       Expedition Natural Resources Inc.    03/29/05        3069/282
James Howard Harris                                 Expedition Natural Resources Inc.    03/29/05        3069/279
Flora Harris Missett                                Expedition Natural Resources Inc.    03/29/05        3079/69
Bobbie Mollice                                      Expedition Natural Resources Inc.    05/02/05        3095/117
Spirit Winzlow Mollice                              Expedition Natural Resources Inc.    05/05/05        3095/120
Margaret Parkes Cope Bailey                         Expedition Natural Resources Inc.    12/09/04        3007/49
Millard Lewis Cope, Jr.                             Expedition Natural Resources Inc.    12/09/04        3001/201
Madeline S. Hall, Trustee                           Expedition Natural Resources Inc.    11/16/04        2985/73
Frank T. Bruce & Ethel D. Bruce                     Expedition Natural Resources Inc.    09/21/04        2962/298
Madelyn Underwood Preston Lesuer                    Expedition Natural Resources Inc.    11/17/04        3011/106
Tina Williams Wilson                                Expedition Natural Resources Inc.    05/06/05        3095/168
Dunbar Oil and Gas Limited, by Donald G. Dunbar,
Jr., aka Don Dunbar, Jr., individually and as
general partner; and R.S.D. Partnership, by
Robert F. Spradlin, II, managing partner            GMX RESOURCES INC.                   08/25/05        3200/159
</TABLE>
                          Exhibit A. Part 1, Page -25-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
John R. Coley, III, David D. Corley                 GMX RESOURCES INC.                   08/25/05        3207/247
Ronald Sangster                                     GMX RESOURCES INC.                   08/25/05        N/A
Gordon Sangster                                     GMX RESOURCES INC.                   08/25/05        N/A
James E Whiteside Revocable Trust                   GMX RESOURCES INC.                   08/25/05        N/A
Ruth E Nolte                                        GMX RESOURCES INC.                   08/25/05        N/A
Helyn Tharpe                                        GMX RESOURCES INC.                   08/26/05        N/A
Major Roberts                                       GMX RESOURCES INC.                   10/19/05        N/A
Leola Pilot Thomas                                  GMX RESOURCES INC.                   09/28/05        N/A

                    WELL NAME                                    WI                         NRI          LOCATION
MARGARET HERRIN #1                                                                                       M.S. Ussery A-722

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Sylvia A. Herrin Snodgrass                          Penn Virginia Oil & Gas, L.P.        03/25/04        N/A
Sandra L. Herrin Ashley                             Penn Virginia Oil & Gas, L.P.        03/25/04        N/A
William G. McCullough                               Penn Virginia Oil & Gas, L.P.        10/11/04        2953/285
William P. McCullough                               Penn Virginia Oil & Gas, L.P.        09/27/04        2989/94
Caroline D. Goodman                                 Penn Virginia Oil & Gas, L.P.        10/11/04        2989/100
Lai Carter Terrell, et al                           Penn Virginia Oil & Gas, L.P.        10/25/04        2978/164
Nancy Kay Green, Indiv & Trustee                    Penn Virginia Oil & Gas, L.P.        06/07/04        2872/109
Linda Ann Giles Freeman                             Penn Virginia Oil & Gas, L.P.        05/24/04        2885/178
Paul Kent Fugler & Naomi Ruth Fugler                Penn Virginia Oil & Gas, L.P.        06/21/04        2885/181
Una Belle Townsend                                  Penn Virginia Oil & Gas, L.P.        06/21/04        2885196
Sandra Fay Giles Comstock                           Penn Virginia Oil & Gas, L.P.        05/24/04        2885/90
Thomas Wayne Giles, Sr.                             Penn Virginia Oil & Gas, L.P.        05/24/04        2922/205
Dudley Beadles                                      Penn Virginia Oil & Gas, L.P.        04/14/05        N/A
Karen N Marti                                       Penn Virginia Oil & Gas, L.P.        04/20/05        N/A
Gail P Smith                                        Penn Virginia Oil & Gas, L.P.        04/28/05        N/A
James E. Hunter et al                               Expedition Natural Resources Inc.    06/07/01        2275/127
Rosie L. Martin Sparks                              Expedition Natural Resources Inc.    08/13/01        2287/26
Gaylord Lawless, Sr.                                Expedition Natural Resources Inc.    05/04/01        2242/345

NON PRODUCING

BETHANY ROGERS SURVEY A-20

LESSOR                                              LESSEE                               LEASE DATE      BOOK/PAGE
Jerry A. Cargill                                    Penn Virginia Oil & Gas, L.P.        08/06/04        2931/318
Jack L. Cargill, Jr.                                Penn Virginia Oil & Gas, L.P.        08/06/04        2931/321
Susan Blanchard                                     Penn Virginia Oil & Gas, L.P.        11/02/04        2978/121
Daniel Lee Finley                                   Penn Virginia Oil & Gas, L.P.        11/02/04        2978/128
James Edward Finley, Sr. Indiv & Exec. Mary
Elizabeth Finley                                    Penn Virginia Oil & Gas, L.P.        11/02/04        2978/131
Robbie Lynn Finley                                  Penn Virginia Oil & Gas, L.P.        11/02/04        2978/134
William Parks Finley, Sr.                           Penn Virginia Oil & Gas, L.P.        11/02/04        2978/137
Mary Elizabeth Graves                               Penn Virginia Oil & Gas, L.P.        11/02/04        2978/140
Westbrook Properties, L.P.                          Penn Virginia Oil & Gas, L.P.        07/07/04        2931/291
James Youree Lancaster                              Penn Virginia Oil & Gas, L.P.        08/01/04        2922/202
Will Y. Lancaster, II                               Penn Virginia Oil & Gas, L.P.        08/01/04        2922/208
William Scott Lancaster                             Penn Virginia Oil & Gas, L.P.        08/01/04        2931/305
</TABLE>
                          Exhibit A. Part 1, Page -26-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Donna Kay Sasser                                    Penn Virginia Oil & Gas, L.P.        08/11/04        2931/308
Randy Wayne Hunt                                    Penn Virginia Oil & Gas, L.P.        08/11/04        2931/302
Jeanie H. Westmoreland                              Penn Virginia Oil & Gas, L.P.        10/13/04        2953/282
William M. Comegys, Jr.                             Penn Virginia Oil & Gas, L.P.        10/15/04        2978/124
Charles Eugene O'Brien                              Penn Virginia Oil & Gas, L.P.        10/15/04        2978/155
Martha Byrne O'Brien                                Penn Virginia Oil & Gas, L.P.        10/15/04        2978/158
Margie H. Rather                                    Expedition Natural Resources Inc.    07/20/01        2287/12
Mary Elizabeth Finley                               Expedition Natural Resources Inc.    07/20/01        2287/7
William M. Huffman                                  Expedition Natural Resources Inc.    07/26/01        2286/330
W. F. Palmer                                        Expedition Natural Resources Inc.    07/26/01        2286/318
Jeanie H. Westmoreland                              Expedition Natural Resources Inc.    07/20/01        2287/17
Edith Padgett Bradshaw                              Expedition Natural Resources Inc.    10/24/01        2330/314
Charlie M. Bradshaw, III                            Expedition Natural Resources Inc.    10/25/01        2330/329
J. W. Hunt                                          Expedition Natural Resources Inc.    10/19/01        2336/146
Jeanie Hamilton Westmoreland                        Expedition Natural Resources Inc.    10/11/01        2349/227
William M. Huffman                                  Expedition Natural Resources Inc.    10/11/01        2336/156
W. F. Palmer                                        Expedition Natural Resources Inc.    10/11/01        2336/231
William Scott Lancaster                             Expedition Natural Resources Inc.    10/22/01        2336/240
Charles Eugene O'Brien                              Expedition Natural Resources Inc.    10/29/01        2336/244
Will Y. Lancaster, II                               Expedition Natural Resources Inc.    10/19/01        2336/142
Martha Bryne O'Brien                                Expedition Natural Resources Inc.    10/29/01        2336/248
James Youree Lancaster                              Expedition Natural Resources Inc.    10/22/01        2336/275
Charlie M. Bradshaw, III                            Expedition Natural Resources Inc.    08/25/01        2309/214
Charles Eugene O'Brien                              Expedition Natural Resources Inc.    08/25/01        2309/210
Edith Padgett Bradshaw                              Expedition Natural Resources Inc.    08/25/01        2309/215
Martha O'Brien                                      Expedition Natural Resources Inc.    08/25/01        2309/227
Florence Rose Hardy                                 Penn Virginia Oil & Gas, L.P.        11/02/04        2978/143
Aurella Weems & Colleen Nelson, Co-Trustees         Penn Virginia Oil & Gas, L.P.        05/24/04        2885/196
Cameron McElroy, et us                              Penn Virginia Oil & Gas, L.P.        04/29/04        2885/200
Gordon W. Sangster                                  Penn Virginia Oil & Gas, L.P.        06/25/04        2922/125
Ronald H. Sangster                                  Penn Virginia Oil & Gas, L.P.        06/25/04        2922/129
M. Whiteside Charitable Trust II                    Penn Virginia Oil & Gas, L.P.        06/25/04        2922/121
James E. Whiteside Trustee/Rev Tr                   Penn Virginia Oil & Gas, L.P.        06/25/04        2922/117
Ruth Nolte                                          Penn Virginia Oil & Gas, L.P.        06/25/04        2931/324
Marjorie Barnwell Brown                             Expedition Natural Resources Inc.    02/04/05        3027/86

LUCINDA WALLACE SURVEY  A-744

Katherine Louise Abney                              Penn Virginia Oil & Gas, L.P.        04/30/04        2919/284
Ruben K. Abney                                      Penn Virginia Oil & Gas, L.P.        04/28/04        2919/293
Katherine Hightower Bennett                         Penn Virginia Oil & Gas, L.P.        04/30/04        2919/290
Lynn Abney Lomax                                    Penn Virginia Oil & Gas, L.P.        04/30/04        2919/287
Jane Abney Price                                    Penn Virginia Oil & Gas, L.P.        04/30/04        2919/296
Barbara Abney Truelove                              Penn Virginia Oil & Gas, L.P.        04/30/04        2919/299
Regina Whelan                                       Penn Virginia Oil & Gas, L.P.        05/05/04        2919/305
Vicky Lynn Whelan                                   Penn Virginia Oil & Gas, L.P.        05/05/04        2919/302
Beth Abney Furrh                                    Penn Virginia Oil & Gas, L.P.        04/30/04        2922/154
Texas Bank & Trust Co, Trustee B. E. Bookout, Jr.   Penn Virginia Oil & Gas, L.P.        09/23/04        2933/281
Texas Bank & Trust Co, Trustee B. E. Bookout        Penn Virginia Oil & Gas, L.P.        09/23/04        2933/283
Hibernia Nat'l Bank/Rebecca R. Bell                 Penn Virginia Oil & Gas, L.P.        09/30/04        2946/1
Hibernia Nat'l Bank/Luella Smith Richardson         Penn Virginia Oil & Gas, L.P.        09/30/04        2946/10
</TABLE>
                          Exhibit A. Part 1, Page -27-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Jack L. Phillips                                    Penn Virginia Oil & Gas, L.P.        10/29/04        N/A
Beverly Jean McGee                                  Penn Virginia Oil & Gas, L.P.        09/29/04        2953/266
Jaqueline McGee                                     Penn Virginia Oil & Gas, L.P.        09/29/04        2953/269
Marvin Moscoe McGee                                 Penn Virginia Oil & Gas, L.P.        09/29/04        2953/291
Sherri Lynn McGee                                   Penn Virginia Oil & Gas, L.P.        09/29/04        2953/272
Ruth McGee Parish                                   Penn Virginia Oil & Gas, L.P.        09/29/04        2953/275
Karon Ann McGee Williams                            Penn Virginia Oil & Gas, L.P.        09/29/04        2953/288
Nellrene Holt                                       Penn Virginia Oil & Gas, L.P.        09/29/04        2953/263
James Hamilton Spencer, Ind/ Exec Bethena Spencer
Rogers Est.                                         Penn Virginia Oil & Gas, L.P.        10/25/04        2978/161
William H. Henderson                                Penn Virginia Oil & Gas, L.P.        10/25/04        2978/146
Ruth Jewell Hill                                    Penn Virginia Oil & Gas, L.P.        11/30/04        28989/97
Fammie Delois Preston                               Penn Virginia Oil & Gas, L.P.        11/29/04        2978/118
Cleveland Sneed                                     Penn Virginia Oil & Gas, L.P.        11/30/04        2989/91
Mary Lee Fields                                     Penn Virginia Oil & Gas, L.P.        11/02/04        2978/127
Wilbert Carl Williams                               Penn Virginia Oil & Gas, L.P.        09/29/04        3016/7
Michael Wayne Williams                              Penn Virginia Oil & Gas, L.P.        09/29/04        3016/4
May Joyce Williams                                  Penn Virginia Oil & Gas, L.P.        09/29/04        3016/1
LeJean Williams                                     Penn Virginia Oil & Gas, L.P.        09/29/04        3015/346
Kristen M. Williams                                 Penn Virginia Oil & Gas, L.P.        09/29/04        3015/343
Albert James Williams                               Penn Virginia Oil & Gas, L.P.        09/29/04        3015/337
Brenda Ann Williams                                 Penn Virginia Oil & Gas, L.P.        09/29/04        3015/340
Melvin Charles McGee                                Penn Virginia Oil & Gas, L.P.        09/29/04        2978/149
Opel Moody                                          Penn Virginia Oil & Gas, L.P.        11/30/04        3000/269
Robert Earl Rollins                                 Penn Virginia Oil & Gas, L.P.        12/15/04        3000/266
Vanoy Rollins                                       Penn Virginia Oil & Gas, L.P.        12/17/04        3000/263
Betty Jean Sneed                                    Penn Virginia Oil & Gas, L.P.        12/09/04        3000/260
Vera Wilkerson                                      Penn Virginia Oil & Gas, L.P.        11/30/04        3000/257
Phyllis Gail Coleman                                Penn Virginia Oil & Gas, L.P.        12/28/04        N/A
Warnell Williams                                    Penn Virginia Oil & Gas, L.P.        09/29/04        N/A
Clinton Sneed                                       Penn Virginia Oil & Gas, L.P.        11/30/04        N/A
Spurgeon Williams                                   Penn Virginia Oil & Gas, L.P.        04/09/05        N/A
W. G. Michaels, Jr. & Rebecca F. Michaels           Penn Virginia Oil & Gas, L.P.        11/24/04        2989/103
LaJean Williams                                     Penn Virginia Oil & Gas, L.P.        12/06/04        N/A
Warnell Williams                                    Penn Virginia Oil & Gas, L.P.        12/06/04        N/A
Brenda Ann Williams                                 Penn Virginia Oil & Gas, L.P.        12/06/04        N/A
Kristen M. Williams                                 Penn Virginia Oil & Gas, L.P.        12/06/04        N/A
Albert James Williams                               Penn Virginia Oil & Gas, L.P.        12/06/04        N/A
May Joyce Williams                                  Penn Virginia Oil & Gas, L.P.        12/06/04        N/A
Michael Wayne Williams                              Penn Virginia Oil & Gas, L.P.        12/06/04        N/A
Spurgeon Williams                                   Penn Virginia Oil & Gas, L.P.        04/09/05        N/A
Lizzie Leffall                                      Penn Virginia Oil & Gas, L.P.        04/01/05        N/A
Mary F. Leffall Johnson                             Penn Virginia Oil & Gas, L.P.        04/01/05        N/A
Erma Manning                                        Penn Virginia Oil & Gas, L.P.        03/14/05        N/A
Linda Ann Giles Freeman                             Penn Virginia Oil & Gas, L.P.        05/05/04        2872/105
Sandra Fay Giles Comstock                           Penn Virginia Oil & Gas, L.P.        05/05/04        2872/115
Thomas Wayne Giles, Sr.                             Penn Virginia Oil & Gas, L.P.        05/05/04        2872/119
Lula Mae Giles Stephens                             Penn Virginia Oil & Gas, L.P.        05/05/04        2885/207
John E. George, Jr.                                 Penn Virginia Oil & Gas, L.P.        05/05/04        2885/203
T. J. Taylor, III                                   Penn Virginia Oil & Gas, L.P.        06/18/04        2877/30
</TABLE>
                          Exhibit A. Part 1, Page -28-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
William Gleason, Tr. Taylor Grey Sain Tr.           Penn Virginia Oil & Gas, L.P.        06/18/04        2877/39
Jerry E. Jones, Sr.                                 Penn Virginia Oil & Gas, L.P.        06/18/04        2877/32
Sally Grey Sain                                     Penn Virginia Oil & Gas, L.P.        06/18/04        2931/288
Oscar Bennet Jones                                  Penn Virginia Oil & Gas, L.P.        06/04/05        N/A
Noel Diane Jones                                    Penn Virginia Oil & Gas, L.P.        06/04/05        3151/24
Estate of T. P. Smith, Jr.                          Penn Virginia Oil & Gas, L.P.        06/04/05        N/A
Estate of Jane King Smith                           Penn Virginia Oil & Gas, L.P.        06/04/05        N/A
Joy Smith Jones                                     Penn Virginia Oil & Gas, L.P.        06/15/05        N/A
Nan Scott Garvin                                    Penn Virginia Oil & Gas, L.P.        08/12/05        N/A
Suzanne Scott Handley                               Penn Virginia Oil & Gas, L.P.        08/12/05        N/A
HW Scott et ux                                      Penn Virginia Oil & Gas, L.P.        08/12/05        N/A
Hiram Bryan Scott                                   Penn Virginia Oil & Gas, L.P.        08/12/05        N/A
Glenda Bradden                                      Penn Virginia Oil & Gas, L.P.        09/27/05        N/A
Beverly Smith                                       Penn Virginia Oil & Gas, L.P.        09/27/05        N/A
Myesha Henderson                                    Penn Virginia Oil & Gas, L.P.        09/27/05        N/A
Joe Lewis et al Scholarship Fund                    Penn Virginia Oil & Gas, L.P.        09/28/05        N/A
Bernard Hill                                        Penn Virginia Oil & Gas, L.P.        09/28/05        N/A
Mazzie Williams Stewart                             Penn Virginia Oil & Gas, L.P.        10/03/05        N/A
Lizzie Leffall                                      Penn Virginia Oil & Gas, L.P.        10/15/05        N/A
Lizzie Leffall                                      Penn Virginia Oil & Gas, L.P.        04/01/05        N/A
Mary F. Leffall Johnson                             Penn Virginia Oil & Gas, L.P.        04/01/05        N/A
Wiley College                                       Penn Virginia Oil & Gas, L.P.        04/08/05        3150/330
Spurgeon Williams                                   Penn Virginia Oil & Gas, L.P.        04/09/05        N/A
Spurgeon Williams                                   Penn Virginia Oil & Gas, L.P.        04/09/05        N/A
Carolyn Leffall Colbert                             Penn Virginia Oil & Gas, L.P.        04/09/05        3151/5
Mary Lee Fields                                     Penn Virginia Oil & Gas, L.P.        04/11/05        N/A
Joe Augustus Smith                                  Penn Virginia Oil & Gas, L.P.        04/11/05        N/A
Renee Leffall Ardis                                 Penn Virginia Oil & Gas, L.P.        05/11/05        N/A

EDWARD PEARCE SURVEY A-577

Myrtle Johnson Nickerson                            Penn Virginia Oil & Gas, L.P.        05/25/04        2916/101
Betha Johnson Simmins                               Penn Virginia Oil & Gas, L.P.        05/25/04        2930/2

JAMES CELLUM SURVEY A-145

Alice Louise Pace                                   Penn Virginia Oil & Gas, L.P.        04/08/04        2827/214
Ann Bell Murphy                                     Penn Virginia Oil & Gas, L.P.        08/24/04        2946/19
Bill Rudd, Inc.                                     Penn Virginia Oil & Gas, L.P.        07/05/04        2922/104
Carlos W. Moon, Jr.                                 Penn Virginia Oil & Gas, L.P.        08/25/05        N/A
Cary M. Abney                                       Expedition Natural Resources Inc.    01/15/02        2372/87
Clarice Y Moon                                      Penn Virginia Oil & Gas, L.P.        08/25/05        N/A
Dale Bryant                                         Penn Virginia Oil & Gas, L.P.        10/14/05        N/A
Dewey C Taylor, Jr.                                 Penn Virginia Oil & Gas, L.P.        04/15/05        N/A
Doris Bell Hopkin                                   Penn Virginia Oil & Gas, L.P.        08/24/04        2945/341
Doris Carrington                                    Penn Virginia Oil & Gas, L.P.        07/12/04        2922/175
Dudley Beadles                                      Penn Virginia Oil & Gas, L.P.        04/14/05        N/A
Emily D Smith Churchman                             Penn Virginia Oil & Gas, L.P.        08/04/05        N/A
Emridge Turner, Jr.                                 Penn Virginia Oil & Gas, L.P.        07/19/04        2935/104
Estate of J. B. Rudd                                Penn Virginia Oil & Gas, L.P.        07/19/04        3000/256
Gail P Smith                                        Penn Virginia Oil & Gas, L.P.        04/28/05        N/A
Gayla Elaine Carrington Crayton                     Penn Virginia Oil & Gas, L.P.        07/12/04        2922/193
</TABLE>
                          Exhibit A. Part 1, Page -29-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
H Alton Bourn                                       Penn Virginia Oil & Gas, L.P.        04/15/05        N/A
Irene Turner Price                                  Penn Virginia Oil & Gas, L.P.        07/19/04        2922/226
Jean George Breckenridge                            Penn Virginia Oil & Gas, L.P.        07/12/04        2922/172
John Dooley Carrington                              Penn Virginia Oil & Gas, L.P.        07/12/04        2922/178
John S. Rice, Jr.                                   Penn Virginia Oil & Gas, L.P.        08/24/04        2945/344
Johnnie Mae Marsh                                   Penn Virginia Oil & Gas, L.P.        02/25/05        N/A
Judy Taylor Dayton                                  Penn Virginia Oil & Gas, L.P.        04/15/05        N/A
Julia Ann Harmon                                    Penn Virginia Oil & Gas, L.P.        06/18/04        2885/184
JW Smith et ux                                      Penn Virginia Oil & Gas, L.P.        04/05/05        3068/211
Karen N Marti                                       Penn Virginia Oil & Gas, L.P.        04/20/05        N/A
Kathleen Smith Whalen                               Penn Virginia Oil & Gas, L.P.        03/28/05        N/A
Kenneth Wayne Smith                                 Penn Virginia Oil & Gas, L.P.        03/28/05        N/A
Laura Jean Pierce Call                              Penn Virginia Oil & Gas, L.P.        07/12/04        2953/260
LaVerne Rose Marr, Tr. Rosehaven Tr                 Penn Virginia Oil & Gas, L.P.        03/05/04        2829/274
Leola Murrell                                       Penn Virginia Oil & Gas, L.P.        07/05/04        2922/211
Lewis K. Mitchell                                   Penn Virginia Oil & Gas, L.P.        09/21/04        2935/101
Luella S Richardson Trust                           Penn Virginia Oil & Gas, L.P.        09/28/05        N/A
Maple Turner Williams                               Penn Virginia Oil & Gas, L.P.        07/19/04        2922/241
Marjorie Akin Carrington                            Penn Virginia Oil & Gas, L.P.        07/12/04        2922/181
Martha L. Spencer, Ind & AIF Raymond W. Spencer     Penn Virginia Oil & Gas, L.P.        09/27/04        2953/278
Mary E Hanks                                        Penn Virginia Oil & Gas, L.P.        04/15/05        N/A
Mary Earl Frierson                                  Penn Virginia Oil & Gas, L.P.        08/23/04        2931/299
Mary Ethel Mitchell                                 Penn Virginia Oil & Gas, L.P.        10/06/04        2953/152
Michael Vaughn Carrington                           Penn Virginia Oil & Gas, L.P.        07/12/04        2922/184
Nancy M. Bryant                                     Penn Virginia Oil & Gas, L.P.        02/21/05        N/A
Nancy M. Bryant                                     Expedition Natural Resources Inc.    01/15/02        2372/84
Nancy M. Bryant                                     Penn Virginia Oil & Gas, L.P.        07/12/05        3151/30
Oma Jean Carrtington Barton Hill                    Penn Virginia Oil & Gas, L.P.        07/12/04        2922/133
Parker Langston                                     Penn Virginia Oil & Gas, L.P.        04/15/05        N/A
Paul M. Thibodeaux                                  Penn Virginia Oil & Gas, L.P.        03/14/05        N/A
R. C. Turner                                        Penn Virginia Oil & Gas, L.P.        07/19/04        2922/238
Rebecca R Bell Trust                                Penn Virginia Oil & Gas, L.P.        09/28/05        N/A
Revarda Turner Perkins                              Penn Virginia Oil & Gas, L.P.        07/19/04        2922/229
Rex Donald Vaughan                                  Penn Virginia Oil & Gas, L.P.        07/12/04        2922/223
Ricky Raven et ux                                   Penn Virginia Oil & Gas, L.P.        01/12/05        N/A
Robert S. Sarubbi et ux                             Penn Virginia Oil & Gas, L.P.        02/28/05        N/A
Roger David Carrington                              Penn Virginia Oil & Gas, L.P.        07/12/04        2922/235
Ronald Wayne Carrington                             Penn Virginia Oil & Gas, L.P.        07/12/04        2922/187
Ruth Bell McClaran                                  Penn Virginia Oil & Gas, L.P.        08/24/04        2945/347
Sally Grey Sain                                     Penn Virginia Oil & Gas, L.P.        03/23/04        2829/288
Sam W. Bostick et ux                                Penn Virginia Oil & Gas, L.P.        02/28/05        N/A
Sharon Inez Moon                                    Penn Virginia Oil & Gas, L.P.        08/25/05        N/A
Susie Ellen Brotherton                              Penn Virginia Oil & Gas, L.P.        07/19/04        2922/232
T. J. Taylor, III                                   Penn Virginia Oil & Gas, L.P.        03/23/04        2829/279
Thedis B Chance                                     Penn Virginia Oil & Gas, L.P.        04/15/05        N/A
Tommy Loyd Carrington                               Penn Virginia Oil & Gas, L.P.        07/12/04        2922/190
Velma Turner                                        Penn Virginia Oil & Gas, L.P.        08/23/04        2931/311
Wiley College                                       Penn Virginia Oil & Gas, L.P.        04/08/05        3150/332
William A. Abney                                    Expedition Natural Resources Inc.    01/15/02        2372/85
William Gleason, Tr. Taylor Grey Sain Tr.           Penn Virginia Oil & Gas, L.P.        03/23/04        2829/272
</TABLE>
                          Exhibit A. Part 1, Page -30-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
William J. Bigby, Jr. et ux                         Penn Virginia Oil & Gas, L.P.        09/19/05        N/A
Willie c. Turner                                    Penn Virginia Oil & Gas, L.P.        07/19/04        2931/314
Youngblood Properties, L.P.                         Penn Virginia Oil & Gas, L.P.        07/05/04        2931/317
Harriet Hoss                                        Penn Virginia Oil & Gas, L.P.        03/28/05        N/A
Fred Martin Smith                                   Penn Virginia Oil & Gas, L.P.        03/28/05        N/A
Wanda Smith Grillette                               Penn Virginia Oil & Gas, L.P.        03/28/05        N/A
Emily D Smith Churchman                             Penn Virginia Oil & Gas, L.P.        03/28/05        N/A
Gerald Philip Smith                                 Penn Virginia Oil & Gas, L.P.        03/28/05        N/A
William Henry Taylor                                Penn Virginia Oil & Gas, L.P.        03/28/05        N/A
Gloria B Frazier                                    Penn Virginia Oil & Gas, L.P.        03/28/05        3065/44

D. C. MOORE SURVEY A-455

Julia Ann Harmon                                    Penn Virginia Oil & Gas, L.P.        06/18/04        2885/184
Martha L. Spencer, Ind & AIF Raymond W. Spencer     Penn Virginia Oil & Gas, L.P.        09/27/04        2953/278
Mary Ethel Mitchell                                 Penn Virginia Oil & Gas, L.P.        10/06/04        2953/152
Wayne E Simmons et ux                               Penn Virginia Oil & Gas, L.P.        04/06/05        N/A
Peggy R. Melton                                     Penn Virginia Oil & Gas, L.P.        08/11/05        N/A
MM&D Energy Inc                                     Penn Virginia Oil & Gas, L.P.        08/11/05        N/A
William Henry Taylor                                Penn Virginia Oil & Gas, L.P.        10/14/05        N/A
Paul M Thibodeaux                                   Penn Virginia Oil & Gas, L.P.        03/30/05        N/A
Betty Coleman Long                                  Penn Virginia Oil & Gas, L.P.        03/30/05        N/A
Leola Murrell                                       Penn Virginia Oil & Gas, L.P.        03/31/05        N/A
Fred Martin Smith                                   Penn Virginia Oil & Gas, L.P.        03/28/05        N/A
Gerald Philip Smith                                 Penn Virginia Oil & Gas, L.P.        03/28/05        N/A
Kenneth Wayne Smith                                 Penn Virginia Oil & Gas, L.P.        03/28/05        N/A
Cynthia M Smith Hooter                              Penn Virginia Oil & Gas, L.P.        03/28/05        N/A
Wanda Smith Grillette                               Penn Virginia Oil & Gas, L.P.        03/28/05        N/A
Harriet Hoss                                        Penn Virginia Oil & Gas, L.P.        03/28/05        N/A
Kathleen Smith Whalen                               Penn Virginia Oil & Gas, L.P.        03/28/05        N/A

JACOB BENNETT SURVEY A-115

Carol Harvey Coggeshall                             Penn Virginia Oil & Gas, L.P.        01/03/05        N/A
Shady Grove Cemetery                                Penn Virginia Oil & Gas, L.P.        01/04/05        N/A
Emma Jean Fields                                    Penn Virginia Oil & Gas, L.P.        01/05/05        N/A
Arnold Fields                                       Penn Virginia Oil & Gas, L.P.        01/05/05        N/A
Artie Fields et al                                  Penn Virginia Oil & Gas, L.P.        01/05/05        N/A
Kerry Fields                                        Penn Virginia Oil & Gas, L.P.        01/05/05        N/A
Marie Gilstrap                                      Penn Virginia Oil & Gas, L.P.        01/05/05        N/A
Joe Jernigan                                        Penn Virginia Oil & Gas, L.P.        01/08/05        N/A
Reginald Jernigan                                   Penn Virginia Oil & Gas, L.P.        01/08/05        N/A
Tracy Jernigan                                      Penn Virginia Oil & Gas, L.P.        01/08/05        N/A
Cecelia Jackson Bruner                              Penn Virginia Oil & Gas, L.P.        01/10/05        N/A
Elizabeth C. Holcomb                                Penn Virginia Oil & Gas, L.P.        01/10/05        N/A
E. R. Slaughter, Jr.                                Penn Virginia Oil & Gas, L.P.        01/10/05        N/A
R. E. Slaughter                                     Penn Virginia Oil & Gas, L.P.        01/10/05        N/A
Melissa Einsohn aka Melissa Einsohn Robins          Penn Virginia Oil & Gas, L.P.        01/10/05        N/A
Reatha Resnik                                       Penn Virginia Oil & Gas, L.P.        01/10/05        N/A
Rosy S. Ross Estate                                 Penn Virginia Oil & Gas, L.P.        01/11/05        N/A
Sabine Farms Educational Society                    Penn Virginia Oil & Gas, L.P.        01/14/05        N/A
Lloyd P. Lochridge, Jr.                             Penn Virginia Oil & Gas, L.P.        01/18/05        N/A
</TABLE>
                          Exhibit A. Part 1, Page -31-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Arno Jeter, et ux                                   Penn Virginia Oil & Gas, L.P.        11/10/04        N/A
Annabel Pagan Blakey                                Penn Virginia Oil & Gas, L.P.        12/16/04        N/A
James Walker et al                                  Penn Virginia Oil & Gas, L.P.        12/17/04        N/A
Curtis & Doris Turney Trust                         Penn Virginia Oil & Gas, L.P.        12/20/04        N/A
John Mark Blocker                                   Penn Virginia Oil & Gas, L.P.        12/20/04        N/A
Tracy Snyder                                        Penn Virginia Oil & Gas, L.P.        12/20/04        N/A
Collins C Dibboll Private Foundation                Penn Virginia Oil & Gas, L.P.        12/20/04        N/A
Ralph O. Harvey III                                 Penn Virginia Oil & Gas, L.P.        12/21/04        N/A
Nonnie Sue Blocker Dierck                           Penn Virginia Oil & Gas, L.P.        12/23/04        N/A
Harry Eugene Blocker, III                           Penn Virginia Oil & Gas, L.P.        12/23/04        N/A
Charles E. Fields                                   Penn Virginia Oil & Gas, L.P.        12/29/04        N/A
Dolores Fields Randle                               Penn Virginia Oil & Gas, L.P.        12/29/04        N/A
Dorothy Fields Warren                               Penn Virginia Oil & Gas, L.P.        12/29/04        N/A
Keith Elsey, Oliver Massengale, Jr. & Charles
Arthur Massengale                                   Penn Virginia Oil & Gas, L.P.        12/29/04        N/A
Myrtle Harris Porterfield                           Penn Virginia Oil & Gas, L.P.        12/29/04        N/A
Zaddie Fields Adams                                 Penn Virginia Oil & Gas, L.P.        12/29/04        N/A
Clinton Charlie Foster, et al                       Penn Virginia Oil & Gas, L.P.        08/09/04        2951/299
Patricia Valentine Thomason                         Penn Virginia Oil & Gas, L.P.        08/18/04        2951/295

SYLVESTER LUNA SURVEY A-401

Willie Jean Birmingham                              Penn Virginia Oil & Gas, L.P.        08/11/04        2951/290
Asa Edward McClendon, Jr. & Carol Ann McClendon     Penn Virginia Oil & Gas, L.P.        08/18/04        2951/266
James R. McClendon, Jr.                             Penn Virginia Oil & Gas, L.P.        08/18/04        2951/261
Asa Edward McClendon & Teddie Jean McClendon        Penn Virginia Oil & Gas, L.P.        08/09/04        2951/256
James R. McClendon, Jr.                             Penn Virginia Oil & Gas, L.P.        08/18/04        2951/233
Bailey C. Moseley, et al                            Penn Virginia Oil & Gas, L.P.        09/22/04        2976/237
Ernest E. Marshall Ind /Trtee/Miram Sealey Marshal  Penn Virginia Oil & Gas, L.P.        08/09/04        2951/280
James Earl Fults                                    Penn Virginia Oil & Gas, L.P.        08/12/04        2981/1
Jerry D. Fults                                      Penn Virginia Oil & Gas, L.P.        08/12/04        2981/4
J. R. McClendon, Jr.                                Penn Virginia Oil & Gas, L.P.        08/09/04        2956/284
Asa Edward McClendon & Teddie Jean McClendon        Penn Virginia Oil & Gas, L.P.        08/09/04        2956/279
Ahleene Reavis                                      Penn Virginia Oil & Gas, L.P.        09/23/04        2976/192
Joanna K. Randolph                                  Penn Virginia Oil & Gas, L.P.        09/30/04        2976/197
James R. Kirkpatrick, Jr.                           Penn Virginia Oil & Gas, L.P.        09/30/04        2976/202
Nancy Erbe                                          Penn Virginia Oil & Gas, L.P.        09/23/04        2976/207
Middleton H. Trotter                                Penn Virginia Oil & Gas, L.P.        09/20/04        2976/212
Herbert Money, Jr & Patsy J. Money                  Penn Virginia Oil & Gas, L.P.        09/23/04        2976/217
Isabel M. Gilcrease                                 Penn Virginia Oil & Gas, L.P.        09/30/04        2976/222
Jane King                                           Penn Virginia Oil & Gas, L.P.        09/20/04        2976/227
Charles Mercer                                      Penn Virginia Oil & Gas, L.P.        09/20/04        2980/323
Dianne Gore                                         Penn Virginia Oil & Gas, L.P.        10/19/04        2980/328
Robert G. Robins                                    Penn Virginia Oil & Gas, L.P.        09/23/04        2980/333
Elnora Wootton                                      Penn Virginia Oil & Gas, L.P.        10/05/04        2980/338
Nann Mercer Chandler                                Penn Virginia Oil & Gas, L.P.        09/20/04        2980/343
Dorothy Fountain                                    Penn Virginia Oil & Gas, L.P.        09/23/04        2981/12
Susan Butos                                         Penn Virginia Oil & Gas, L.P.        10/11/04        N/A
Patrick McJimsey                                    Penn Virginia Oil & Gas, L.P.        10/28/04        N/A
William McJimsey                                    Penn Virginia Oil & Gas, L.P.        10/28/04        N/A
Bryan McJimsey                                      Penn Virginia Oil & Gas, L.P.        10/28/04        N/A
</TABLE>
                          Exhibit A. Part 1, Page -32-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Janice McJimsey Stoltz                              Penn Virginia Oil & Gas, L.P.        10/28/04        N/A
Jeannine C. Derise                                  Penn Virginia Oil & Gas, L.P.        10/28/04        N/A
Annette Bell                                        Penn Virginia Oil & Gas, L.P.        10/05/04        N/A
Robert McJimsey                                     Penn Virginia Oil & Gas, L.P.        11/03/04        N/A
Esther Raines                                       Penn Virginia Oil & Gas, L.P.        09/23/04        N/A
Bobby E. Trotter                                    Penn Virginia Oil & Gas, L.P.        01/06/05        N/A
Martha Ann Wood                                     Penn Virginia Oil & Gas, L.P.        08/09/04        2976/232
Asa Edward McClendon & Teddie Jean McClendon        Penn Virginia Oil & Gas, L.P.        08/09/04        2951/275
Minnie Belle White                                  Penn Virginia Oil & Gas, L.P.        08/09/04        2951/271
Asa Edward McClendon & Teddie Jean McClendon        Penn Virginia Oil & Gas, L.P.        08/09/04        2951/242

W. HUMPHRIES SURVEY A-299

Minnie Belle White                                  Penn Virginia Oil & Gas, L.P.        08/09/04        2951/251
Gladys White Warwick                                Penn Virginia Oil & Gas, L.P.        08/09/04        2951/247
Minnie Belle White                                  Penn Virginia Oil & Gas, L.P.        08/09/04        2951/238
Asa Edward McClendon & Teddie Jean McClendon        Penn Virginia Oil & Gas, L.P.        08/09/04        2951/275
Minnie Belle White                                  Penn Virginia Oil & Gas, L.P.        08/09/04        2951/271
Asa Edward McClendon & Teddie Jean McClendon        Penn Virginia Oil & Gas, L.P.        08/09/04        2951/242

SAMUEL MONDAY SURVEY A-14

Ernest E. Marshall, et al                           Penn Virginia Oil & Gas, L.P.        08/09/04        2951/285

JOHN FINDLEY SURVEY A-274

Juanita Wadlington                                  Expedition Natural Resources Inc.    11/13/01        N/A
Neva Nell Riney                                     Expedition Natural Resources Inc.    11/13/01        N/A
Winnie R. Houston                                   Expedition Natural Resources Inc.    11/13/01        N/A

J. B. CAMPBELL SURVEY A-148

Jacob C. Bell et ux                                 H. Rowold                            07/10/01        2275/16
Frank A. Timmins, Sr.                               Expedition Natural Resources Inc.    09/16/04        2950/74
Reba Jeanette Lawrence                              Expedition Natural Resources Inc.    09/14/04        2950/86
Peggy Jean Webber                                   Expedition Natural Resources Inc.    09/14/04        2985/277
Alice Guenther McLean                               Expedition Natural Resources Inc.    08/31/04        2961/49
Mildred Lister & Clay R. Lister                     Expedition Natural Resources Inc.    09/07/04        2950/83
Essau Mohammad                                      Expedition Natural Resources Inc.    09/12/04        2950/71
Brenda Lister                                       Expedition Natural Resources Inc.    09/07/04        2950/65
Luther V. Lister                                    Expedition Natural Resources Inc.    09/03/04        2968/14
Gilda Lister Metzler                                Expedition Natural Resources Inc.    09/14/04        2968/17
Thelma Rambo Williams                               Expedition Natural Resources Inc.    09/02/04        2950/59
Frankie Rambo                                       Expedition Natural Resources Inc.    09/03/04        2950/62
Charlie Ray Rambo                                   Expedition Natural Resources Inc.    09/03/04        2950/68
Ernestine Rambo Chandler                            Expedition Natural Resources Inc.    09/03/04        2950/77
Velma Dean Rambo Bean                               Expedition Natural Resources Inc.    09/03/04        2950/56
Leon Fisher                                         Expedition Natural Resources Inc.    09/14/04        2961/52
Richard Lee Fisher                                  Expedition Natural Resources Inc.    09/14/04        2950/83
Carlton Fisher                                      Expedition Natural Resources Inc.    09/14/04        2968/11
Nealette Richardson Rucker                          Expedition Natural Resources Inc.    09/07/04        2975/225
</TABLE>
                          Exhibit A. Part 1, Page -33-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Eleanor Richardson Glosson                          Expedition Natural Resources Inc.    09/07/04        2975/222
Bernard Bolding Richardson                          Expedition Natural Resources Inc.    09/07/04        2943/259
Anesya Harris Newton                                Expedition Natural Resources Inc.    09/12/04        2950/53
Diana Heartsill Young                               Expedition Natural Resources Inc.    09/07/04        3000/181
Verna Dean Rambo Rivers                             Expedition Natural Resources Inc.    09/03/04        2975/219
Kenneth Fisher                                      Expedition Natural Resources Inc.    09/14/04        3000/178
American Assurance 2000, L.P.                       Expedition Natural Resources Inc.    11/24/04        3027/82
Willie (Pete) Alexander                             Expedition Natural Resources Inc.    09/03/04        2985/95
Brenda Williams                                     Expedition Natural Resources Inc.    03/17/05        3075/240

M. S. USSERY SURVEY A-722

Marvis D. Price                                     Expedition Natural Resources Inc.    03/24/03        2603/217
Yvonne T. Hooper                                    Expedition Natural Resources Inc.    03/24/03        2603/220
Sandra B. Crosby                                    Expedition Natural Resources Inc.    03/24/03        2603/223
Carolyn F. McCracken                                Expedition Natural Resources Inc.    03/24/03        2603/226
Ronnie Taylor                                       Expedition Natural Resources Inc.    03/24/03        2599/331
Roy M. Taylor, Sr. & Faye J. Taylor                 Expedition Natural Resources Inc.    03/24/03        2606/204
Bobby R. Lester                                     Expedition Natural Resources Inc.    04/04/03        2626/261
Emma Jean Lester Williams                           Expedition Natural Resources Inc.    04/23/03        2626/258
James Lester                                        Expedition Natural Resources Inc.    04/04/03        2626/255
Edward B. Lester                                    Expedition Natural Resources Inc.    04/01/03        2626/249
Arthur D.Irving, Sr.                                Expedition Natural Resources Inc.    04/22/03        2626/252
Donnie Ray Irving                                   Expedition Natural Resources Inc.    04/02/03        2626/246
Caren Harvey Prothro                                Expedition Natural Resources Inc.    07/09/04        2899/184
Ralph O. Harvey, III                                Expedition Natural Resources Inc.    07/09/04        2938/226
Joyful L. Short, AIF Clara Butler Leffall           Expedition Natural Resources Inc.    07/28/04        3006/18
Otis Leffall                                        Expedition Natural Resources Inc.    07/28/04        2938/236
Margaret Rose Hansell Jackson                       Expedition Natural Resources Inc.    07/28/04        3022/92
Catherine Hansell McDuffie                          Expedition Natural Resources Inc.    10/10/01        2336/290
Richard Butler                                      Expedition Natural Resources Inc.    10/10/01        2336/293
John Butler                                         Expedition Natural Resources Inc.    10/10/01        2336/256
Bobbie Ellen Wood Roberts                           Expedition Natural Resources Inc.    06/28/01        2275/55
Eraina M. Dillard Robinson                          Expedition Natural Resources Inc.    07/21/04        2938/272
Issac Dillard                                       Expedition Natural Resources Inc.    07/21/04        2938/272
Eugene B. Harvey, Jr.                               Expedition Natural Resources Inc.    07/09/04        2903/316
James Ford Harvey                                   Expedition Natural Resources Inc.    07/09/04        2938/268
John Stewart Harvey                                 Expedition Natural Resources Inc.    07/09/04        2938/264
Ernest F. Smith Trust                               Expedition Natural Resources Inc.    05/21/01        2275/59
Trust Under Act of Esther R. Smith                  Expedition Natural Resources Inc.    05/21/01        2275/64
</TABLE>
                          Exhibit A. Part 1, Page -34-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
WM. WILLIAMS SURVEY A-757

J. D. Manning                                       Expedition Natural Resources Inc.    09/27/01        2319/305
Fleshia Taylor                                      Expedition Natural Resources Inc.    10/08/01        2330/302
Jessie Anderson                                     Expedition Natural Resources Inc.    09/27/01        2319/308
Jessie Anderson, AIF                                Expedition Natural Resources Inc.    09/27/01        2319/311
Brenda Manning Everitt                              Expedition Natural Resources Inc.    10/08/01        2319/291
Adious Manning                                      Expedition Natural Resources Inc.    09/27/01        2319/288
Jessie B. Manning                                   Expedition Natural Resources Inc.    10/04/01        2319/314
Keith Manning                                       Expedition Natural Resources Inc.    09/27/01        2319/318
Curtis L. Manning                                   Expedition Natural Resources Inc.    09/27/01        2319/294
Ernest F. Smith Trust                               Expedition Natural Resources Inc.    05/21/01        2275/59
Trust Under Act of Esther R. Smith                  Expedition Natural Resources Inc.    05/21/01        2275/64
Cal Farley's Boys Ranch                             Expedition Natural Resources Inc.    05/15/01        2262/108
The Lake C. Brown Test. Trust                       Expedition Natural Resources Inc.    05/29/01        2275/50
Joe and Robin Pollani                               Expedition Natural Resources Inc.    05/15/01        2262/103
William C. Sawtelle                                 Expedition Natural Resources Inc.    09/19/01        2309/238
Eugene Williams                                     Expedition Natural Resources Inc.    05/30/01        2275/20
Homer T. Williams                                   Expedition Natural Resources Inc.    05/30/01        2275/20
Carolyn Williams                                    Expedition Natural Resources Inc.    05/30/01        2275/41
Jacqueline Robinson                                 Expedition Natural Resources Inc.    05/30/01        2275/46
Jo Ann Dixon                                        Expedition Natural Resources Inc.    05/30/01        2275/36
Billy Williams                                      Expedition Natural Resources Inc.    05/15/01        2275/30
Albert Williams                                     Expedition Natural Resources Inc.    05/30/01        2279/206
Charles Williams                                    Expedition Natural Resources Inc.    05/30/01        2282/141
Johnny Ray Williams                                 Expedition Natural Resources Inc.    05/30/01        2299/287
Myron B. Marks                                      Expedition Natural Resources Inc.    07/19/04        2955/181
Ralph S. Marks                                      Expedition Natural Resources Inc.    07/19/04        2955/177
Sandra Engler Gerrie                                Expedition Natural Resources Inc.    07/19/04        2903/320
J. W. Hunt                                          Expedition Natural Resources Inc.    10/11/01        2336/153
Andrew J. Brune                                     Expedition Natural Resources Inc.    10/11/04        2955/193
James E. Burnett                                    Expedition Natural Resources Inc.    10/11/04        2955/189
Robert Clay Allen AIF Maxine P. Allen               Expedition Natural Resources Inc.    10/12/01        2336/236
Vernard G. Solomon                                  Expedition Natural Resources Inc.    10/10/01        2349/220
Richard Brown, Succ. Trustee of J. O. Brown Trust   Expedition Natural Resources Inc.    04/01/05        3060/93
LaVert Williams                                     Expedition Natural Resources Inc.    04/05/05        3095/144
Jeanne Williams Thompkins                           Expedition Natural Resources Inc.    04/27/05        3095/141
Kenneth Ray Williams                                Expedition Natural Resources Inc.    04/27/05        3095/138
Alva Childs                                         Expedition Natural Resources Inc.    04/27/05        3095/132
Jeffery Williams                                    Expedition Natural Resources Inc.    04/27/05        3095/126
Erma Lee Richardson                                 Expedition Natural Resources Inc.    04/27/05        3095/129
Harold Williams                                     Expedition Natural Resources Inc.    04/27/05        3095/135
Erma C. Williams                                    Expedition Natural Resources Inc.    04/25/05        3095/150
Archie D. Williams                                  Expedition Natural Resources Inc.    04/25/05        3095/147
Archie D. Williams                                  Expedition Natural Resources Inc.    05/02/05        3095/153
Thelma Johnson Williams                             Expedition Natural Resources Inc.    05/06/05        3095/156
Velma Johnson Bean                                  Expedition Natural Resources Inc.    05/06/05        3095/159
Tina Williams Wilson                                Expedition Natural Resources Inc.    04/25/05        3095/162
Tina Williams Wilson                                Expedition Natural Resources Inc.    05/02/05        3095/165
James L. Cadenhead                                  Expedition Natural Resources Inc.    02/03/05        3024/111
Gerry Dean Cadenhead Fletcher                       Expedition Natural Resources Inc.    02/03/05        3027/100
Christine Edwards Morgan                            Expedition Natural Resources Inc.    02/03/05        3024/108
Wrae Lacy                                           Expedition Natural Resources Inc.    02/03/05        3024/105
Sammy Lindsay Cadenhead                             Expedition Natural Resources Inc.    02/03/05        3028/198
Ann Cadenhead McNutt                                Expedition Natural Resources Inc.    02/03/05        3044/162
Mertice Newton                                      Expedition Natural Resources Inc.    02/03/05        3024/114
John Henry Newton                                   Expedition Natural Resources Inc.    02/03/05        3028/195
Betty Newton Morton                                 Expedition Natural Resources Inc.    02/03/05        3027/94
Mildred Newton Ford                                 Expedition Natural Resources Inc.    02/03/05        3027/97
Percy Woodard, Jr.                                  Expedition Natural Resources Inc.    02/10/05        3064/338
</TABLE>
                          Exhibit A. Part 1, Page -35-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Eugene B. Harvey, Jr.                               Expedition Natural Resources Inc.    07/09/04        2903/316
James Ford Harvey                                   Expedition Natural Resources Inc.    07/09/04        2938/268
John Stewart Harvey                                 Expedition Natural Resources Inc.    07/09/04        2938/264
Francis Paul Cullum                                 Expedition Natural Resources Inc.    05/24/05        N/A
Brenda Moon                                         Expedition Natural Resources Inc.    05/24/05        N/A
James Brandon Cullum                                Expedition Natural Resources Inc.    05/24/05        N/A
Bertha Jennings                                     Expedition Natural Resources Inc.    05/13/05        3103/120
Glen Edward Williams                                Expedition Natural Resources Inc.    05/13/05        3178/122
Olden Davis Manning, Jr.                            Expedition Natural Resources Inc.    05/13/05        3112/163
Annie Mosely                                        Expedition Natural Resources Inc.    05/13/05        3106/120
Melba Manning                                       Expedition Natural Resources Inc.    05/13/05        3112/166
Elessia Mae Leffall                                 Expedition Natural Resources Inc.    05/13/05        N/A
Darrell Manning                                     Expedition Natural Resources Inc.    05/13/05        N/A
Edward Manning                                      Expedition Natural Resources Inc.    05/13/05        3112/145
Johnnie Rohelia Manning                             Expedition Natural Resources Inc.    05/13/05        3112/154
Raymond David Manning, Sr.                          Expedition Natural Resources Inc.    05/13/05        N/A
Cornelia Manning Caines                             Expedition Natural Resources Inc.    05/13/05        3112/151
Mary Ann Jennings                                   Expedition Natural Resources Inc.    05/13/05        3113/255
Velma Jean M. Shambry                               Expedition Natural Resources Inc.    05/13/05        N/A
James Leon Williams                                 Expedition Natural Resources Inc.    05/13/05        N/A
Tina Lee Ebukam                                     Expedition Natural Resources Inc.    05/13/05        N/A
Ernest Lee Jennings                                 Expedition Natural Resources Inc.    05/13/05        N/A
Billy Ray Else                                      Expedition Natural Resources Inc.    05/13/05        N/A
Lonnie Calvin Manning                               Expedition Natural Resources Inc.    05/20/05        3112/160
Pauline Manning Reeves                              Expedition Natural Resources Inc.    05/20/05        3112/163
Rufus Manning                                       Expedition Natural Resources Inc.    05/20/05        3103/114
Clemonteen Manning                                  Expedition Natural Resources Inc.    05/20/05        3106/114
Horace Manning                                      Expedition Natural Resources Inc.    05/20/05        3106/117
Cecil Manning                                       Expedition Natural Resources Inc.    05/20/05        3106/123
Shanna Rosetta Starr                                Expedition Natural Resources Inc.    05/20/05        3116/98
Haward Manning, Jr.                                 Expedition Natural Resources Inc.    05/20/05        N/A
Lee Manning                                         Expedition Natural Resources Inc.    05/20/05        3112/157
Dorothy Manning Abercrombie                         Expedition Natural Resources Inc.    05/20/05        3112/148
Delois Manning Barr                                 Expedition Natural Resources Inc.    05/20/05        N/A
Louis Bernard Manning                               Expedition Natural Resources Inc.    05/20/05        N/A
Joeletta Williams Taylor                            Expedition Natural Resources Inc.    06/02/05        3112/172
Greta Nell Hubbard                                  Expedition Natural Resources Inc.    06/28/05        N/A
Daniel Wayne Williams                               GMX                                  06/28/05        3185/131
Hattie B. Manning Miles                             Expedition Natural Resources Inc.    07/05/05        N/A
Gladys Manning Ottey                                Expedition Natural Resources Inc.    07/05/05        N/A
J. C. Manning                                       Expedition Natural Resources Inc.    07/05/05        N/A
Willie Charles Manning                              Expedition Natural Resources Inc.    07/05/05        N/A
Wesley J. Manning                                   Expedition Natural Resources Inc.    07/05/05        N/A
Flora D. Manning                                    Expedition Natural Resources Inc.    07/05/05        N/A
Jerry Manning                                       Expedition Natural Resources Inc.    07/05/05        N/A
Bertha Abercrombie                                  Expedition Natural Resources Inc.    07/05/05        N/A
JD Manning                                          Expedition Natural Resources Inc.    07/05/05        3170/208
Lena M. Manning Scott                               Expedition Natural Resources Inc.    07/12/05        N/A
Agious Manning III                                  Expedition Natural Resources Inc.    07/12/05        N/A
Vertice Lee Manning                                 Expedition Natural Resources Inc.    07/12/05        N/A
</TABLE>
                          Exhibit A. Part 1, Page -36-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Jessie Anderson                                     Expedition Natural Resources Inc.    07/12/05        N/A
Janice Gibson                                       GMX RESOURCES INC.                   07/12/05        N/A
Peggy N Manning                                     GMX RESOURCES INC.                   07/12/05        N/A
Ruby N Manning Raven                                GMX RESOURCES INC.                   07/12/05        N/A
Claudia A. Manning                                  GMX RESOURCES INC.                   07/12/05        N/A
Annie R Lane Fisher                                 Expedition Natural Resources Inc.    07/18/05        N/A
Linda Robinson Clark                                Expedition Natural Resources Inc.    07/18/05        N/A
James A Lane                                        GMX RESOURCES INC.                   07/18/05        N/A
Flora Jones                                         GMX RESOURCES INC.                   07/20/05        3164/141
Willie Charles Manning                              GMX RESOURCES INC.                   07/25/05        N/A
Joanna Rudd                                         GMX RESOURCES INC.                   07/25/05        3164/138
Gwendolyn Louise Rudd                               GMX RESOURCES INC.                   07/25/05        N/A
James Rudd                                          GMX RESOURCES INC.                   07/25/05        3164/132
Darlene Rudd                                        GMX RESOURCES INC.                   07/25/05        N/A
Brenda Joyce Rudd                                   GMX RESOURCES INC.                   07/25/05        3185/137
LaKiesha Monique Rudd                               GMX RESOURCES INC.                   07/25/05        3185/134
Marie Davis                                         GMX RESOURCES INC.                   07/25/05        3193/28
Bertha Abercrombie                                  GMX RESOURCES INC.                   07/27/05        N/A
Hattie B. Manning Miles                             GMX RESOURCES INC.                   07/27/05        N/A
Claudia A. Manning                                  GMX RESOURCES INC.                   07/27/05        N/A
Lena M. Manning Scott                               GMX RESOURCES INC.                   07/27/05        N/A
JC Manning                                          GMX RESOURCES INC.                   07/27/05        N/A
Ruby N Manning Raven                                GMX RESOURCES INC.                   07/27/05        N/A
Vertice Lee Manning                                 GMX RESOURCES INC.                   07/27/05        N/A
Wesley J Manning                                    GMX RESOURCES INC.                   07/27/05        N/A
Peggy N Manning                                     GMX RESOURCES INC.                   07/27/05        N/A
Jerry Manning                                       GMX RESOURCES INC.                   07/27/05        N/A
Agious Manning, III                                 GMX RESOURCES INC.                   07/27/05        N/A
Janice Gibson(aka Johnnie Lee Manning)              GMX RESOURCES INC.                   07/27/05        N/A
Luster D Manning                                    GMX RESOURCES INC.                   07/29/05        N/A
Jessie L. Manning                                   GMX RESOURCES INC.                   08/10/05        3164/135
Michael Davis                                       GMX RESOURCES INC.                   08/13/05        N/A

WM. SMITH SURVEY A-21

Pauline Foster                                      Expedition Natural Resources Inc.    05/09/01        2262/75
Winnie R. Houston                                   Expedition Natural Resources Inc.    05/09/01        2262/71
Neva Neil Riney                                     Expedition Natural Resources Inc.    05/09/01        2262/63
Penny Star Cox                                      Expedition Natural Resources Inc.    05/09/01        2262/67
Juanita Wadlington                                  Expedition Natural Resources Inc.    05/09/01        2262/80
Essie Manning                                       Expedition Natural Resources Inc.    09/26/01        2312/47
Lizzie Manning Tamplin                              Expedition Natural Resources Inc.    09/26/01        2330/298
Bertha Jennings                                     Expedition Natural Resources Inc.    05/13/05        3103/120
Glen Edward Williams                                Expedition Natural Resources Inc.    05/13/05        3178/122
Olden Davis Manning, Jr.                            Expedition Natural Resources Inc.    05/13/05        3112/163
Annie Mosely                                        Expedition Natural Resources Inc.    05/13/05        3106/120
Melba Manning                                       Expedition Natural Resources Inc.    05/13/05        3112/166
Elessia Mae Leffall                                 Expedition Natural Resources Inc.    05/13/05        N/A
Darrell Manning                                     Expedition Natural Resources Inc.    05/13/05        N/A
Edward Manning                                      Expedition Natural Resources Inc.    05/13/05        3112/145
Johnnie Rohelia Manning                             Expedition Natural Resources Inc.    05/13/05        3112/154
</TABLE>
                          Exhibit A. Part 1, Page -37-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Raymond David Manning, Sr.                          Expedition Natural Resources Inc.    05/13/05        N/A
Cornelia Manning Caines                             Expedition Natural Resources Inc.    05/13/05        3112/151
Mary Ann Jennings                                   Expedition Natural Resources Inc.    05/13/05        3113/255
Velma Jean M. Shambry                               Expedition Natural Resources Inc.    05/13/05        N/A
James Leon Williams                                 Expedition Natural Resources Inc.    05/13/05        N/A
Tina Lee Ebukam                                     Expedition Natural Resources Inc.    05/13/05        N/A
Ernest Lee Jennings                                 Expedition Natural Resources Inc.    05/13/05        N/A
Billy Ray Else                                      Expedition Natural Resources Inc.    05/13/05        N/A
Lonnie Calvin Manning                               Expedition Natural Resources Inc.    05/20/05        3112/160
Pauline Manning Reeves                              Expedition Natural Resources Inc.    05/20/05        3112/163
Rufus Manning                                       Expedition Natural Resources Inc.    05/20/05        3103/114
Clemonteen Manning                                  Expedition Natural Resources Inc.    05/20/05        3106/114
Horace Manning                                      Expedition Natural Resources Inc.    05/20/05        3106/117
Cecil Manning                                       Expedition Natural Resources Inc.    05/20/05        3106/123
Shanna Rosetta Starr                                Expedition Natural Resources Inc.    05/20/05        3116/98
Haward Manning, Jr.                                 Expedition Natural Resources Inc.    05/20/05        N/A
Lee Manning                                         Expedition Natural Resources Inc.    05/20/05        3112/157
Dorothy Manning Abercrombie                         Expedition Natural Resources Inc.    05/20/05        3112/148
Delois Manning Barr                                 Expedition Natural Resources Inc.    05/20/05        N/A
Louis Bernard Manning                               Expedition Natural Resources Inc.    05/20/05        N/A

J. MAXIMILLIN SURVEY A-444

Karen Fults Fritschi                                Expedition Natural Resources Inc.    08/11/04        2975/216
Brenda Hayner Moon                                  Expedition Natural Resources Inc.    08/10/04        2925/65
James Brandon Cullum                                Expedition Natural Resources Inc.    09/07/04        2968/20
Jerry D. Fults                                      Expedition Natural Resources Inc.    08/12/04        2953/206
James Earl Fults                                    Expedition Natural Resources Inc.    08/12/04        2953/211
Francis Paul Cullum                                 Expedition Natural Resources Inc.    09/02/04        2961/55
Judy Fults, Travis Vernon & Farrah Elise Fults      Expedition Natural Resources Inc.    08/10/04        2943/257
Barbara Midlo, et al                                Expedition Natural Resources Inc.    03/28/05        3070/152
Evelyn Warren                                       Expedition Natural Resources Inc.    03/28/05        3075/228
Betty Mae Jackson                                   Expedition Natural Resources Inc.    03/28/05        3069/267
James Howard                                        Expedition Natural Resources Inc.    03/28/05        3069/270
Vernell Howard                                      Expedition Natural Resources Inc.    03/28/05        3069/276
E. Jesse Howard                                     Expedition Natural Resources Inc.    03/28/05        3069/273
Vernetta Howard                                     Expedition Natural Resources Inc.    03/28/05        3070/155
Arthur D. Hollie                                    Expedition Natural Resources Inc.    03/28/05        3070/185
Ketra James                                         Expedition Natural Resources Inc.    03/28/05        3075/222
Albert James, Sr.                                   Expedition Natural Resources Inc.    03/28/05        3075/225
Benita James                                        Expedition Natural Resources Inc.    03/28/05        3075/237
Velma White                                         Expedition Natural Resources Inc.    03/17/05        3075/231
Beverly James Smith                                 Expedition Natural Resources Inc.    03/28/05        3075/234
Henry McCarver                                      Expedition Natural Resources Inc.    03/28/05        3079/80
Lonnie Veasey                                       Expedition Natural Resources Inc.    03/30/05        3079/74
Thelma Lois Veasey                                  Expedition Natural Resources Inc.    03/17/05        3079/77
Audrey James                                        Expedition Natural Resources Inc.    04/11/05        3082/346
Troy Howard                                         Expedition Natural Resources Inc.    03/28/05        3082/343
Jimmie Ray Howard                                   Expedition Natural Resources Inc.    03/28/05        3082/340
William Charles Howard                              Expedition Natural Resources Inc.    03/28/05        3083/1
Sherilyn Howard                                     Expedition Natural Resources Inc.    04/18/05        3095/123
</TABLE>
                          Exhibit A. Part 1, Page -38-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Francis Paul Cullum                                 Expedition Natural Resources Inc.    05/24/05        N/A
Brenda Moon                                         Expedition Natural Resources Inc.    05/24/05        N/A
James Brandon Cullum                                Expedition Natural Resources Inc.    05/24/05        N/A
Eugene B. Harvey, Jr.                               Expedition Natural Resources Inc.    07/09/04        2903/316
James Ford Harvey                                   Expedition Natural Resources Inc.    07/09/04        2938/268
John Stewart Harvey                                 Expedition Natural Resources Inc.    07/09/04        2938/264
Audrey James                                        Expedition Natural Resources Inc.    04/11/05        3082/346
Sherilyn Howard                                     Expedition Natural Resources Inc.    04/18/05        3095/123
Gladys Howard                                       Expedition Natural Resources Inc.    04/18/05        3106/129
Johnny Howard, Jr.                                  Expedition Natural Resources Inc.    04/18/05        3106/126
Judy Fults, Travis Fults, Farrah Fults              Expedition Natural Resources Inc.    05/02/05        N/A
Karen Fults Fritschi                                Expedition Natural Resources Inc.    05/31/05        N/A
Jo Ann Fults Scott                                  Expedition Natural Resources Inc.    06/24/05        N/A
Velma Denson                                        Expedition Natural Resources Inc.    06/29/05        N/A
Brenda Williams                                     Expedition Natural Resources Inc.    06/29/05        N/A
Erma Perryman                                       Expedition Natural Resources Inc.    06/29/05        3178/117
Freddie Kendrick                                    Expedition Natural Resources Inc.    06/29/05        3170/199
Georgia Davis Johnson                               Expedition Natural Resources Inc.    07/04/05        3164/155
Elvy Pharr Callies                                  Expedition Natural Resources Inc.    07/04/05        3164/155
Margaret Jefferson Harvey                           Expedition Natural Resources Inc.    07/04/05        N/A
Charlotte C. Thomas                                 Expedition Natural Resources Inc.    07/08/05        N/A
James B. Crawley                                    Expedition Natural Resources Inc.    07/08/05        N/A
Orestus Cavness                                     GMX RESOURCES INC.                   07/15/05        N/A
OJ Holt, Jr. et ux Diane Holt                       GMX RESOURCES INC.                   08/14/05        3164/150
Donald Quayle Powell                                GMX RESOURCES INC.                   08/18/05        3170/202
Eura Lee Cavness, Jr.                               GMX RESOURCES INC.                   09/07/05        3189/250
Eura Jean Cavness Wallace                           GMX RESOURCES INC.                   09/07/05        3191/308
Maurice Cavness                                     GMX RESOURCES INC.                   09/07/05        N/A
Annie Laurie Perkins                                GMX RESOURCES INC.                   09/14/05        N/A
Gregory Johnson                                     GMX RESOURCES INC.                   09/14/05        N/A
John Dixon, Jr.                                     GMX RESOURCES INC.                   09/14/05        N/A
Evelyn Warren                                       GMX RESOURCES INC.                   09/22/05        N/A
Hallard Green                                       GMX RESOURCES INC.                   09/26/05        N/A
Jacob C. Bell, Jr. et ux Ruby Wade Bell             GMX RESOURCES INC.                   09/26/05        3191/314
Corine Williams                                     GMX RESOURCES INC.                   09/28/05        N/A
Vernon G. Calvin, Jr.                               GMX RESOURCES INC.                   10/03/05        N/A
Corinthian Calvin White                             GMX RESOURCES INC.                   10/03/05        N/A
Velma Dixon                                         GMX RESOURCES INC.                   10/03/05        N/A
Phyllis Calvin Tucker                               GMX RESOURCES INC.                   10/03/05        N/A

SARAH SHOTO SURVEY A-632

Lake C. Brown Test. Trust                           Expedition Natural Resources Inc.    10/29/04        2963/244
Hester Marie Lucas Miller                           Expedition Natural Resources Inc.    11/10/04        2968/7
Audrey Wickerham                                    Expedition Natural Resources Inc.    11/15/04        2985/91
Jessie Thomas                                       Expedition Natural Resources Inc.    11/15/04        3000/196
Eva Beasley                                         Expedition Natural Resources Inc.    11/15/04        3000/200
Natasha Bradley                                     Expedition Natural Resources Inc.    11/15/04        3000/204
Joseph Thomas                                       Expedition Natural Resources Inc.    11/15/04        3027/90
Marcellas Smith                                     Expedition Natural Resources Inc.    11/19/04        3000/191
Horace Taylor, Jr. & Cassandra Taylor               Expedition Natural Resources Inc.    11/19/04        3000/188
</TABLE>
                          Exhibit A. Part 1, Page -39-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Brenda S. Pullum                                    Expedition Natural Resources Inc.    11/19/04        2985/82
Eliza Stewart                                       Expedition Natural Resources Inc.    11/19/04        3000/211
Pearl McGregor                                      Expedition Natural Resources Inc.    11/19/04        3000/299
Pearl Prosper                                       Expedition Natural Resources Inc.    11/19/04        2985/85
Evelyn Diaz                                         Expedition Natural Resources Inc.    11/19/04        3000/223
Annie Wilson                                        Expedition Natural Resources Inc.    11/19/04        3000/226
Gracie Lee Henderson                                Expedition Natural Resources Inc.    11/19/04        3024/102
Georgia Daniels                                     Expedition Natural Resources Inc.    11/19/04        3015/72
Cassandra Taylor                                    Expedition Natural Resources Inc.    11/19/04        3000/208
Riva Butler                                         Expedition Natural Resources Inc.    11/19/04        3015/63
Minnie Mary Sapp                                    Expedition Natural Resources Inc.    11/19/04        3015/69
Carl Roberson                                       Expedition Natural Resources Inc.    11/19/04        3053/152
Alberts Malory, et ux                               Expedition Natural Resources Inc.    11/19/04        3000/185
Larry Smith                                         Expedition Natural Resources Inc.    11/30/04        2985/88
Mary Wingo                                          Expedition Natural Resources Inc.    11/30/04        3000/214
Virginia McGruder                                   Expedition Natural Resources Inc.    11/30/04        3000/220
Wilbert Alexander                                   Expedition Natural Resources Inc.    11/30/04        2985/79
Gerald Northington                                  Expedition Natural Resources Inc.    11/30/04        3000/217
Charles Northington                                 Expedition Natural Resources Inc.    11/30/04        3015/66
Robert Earl Roberson                                Expedition Natural Resources Inc.    11/30/04        3053/149
Marjorie Barnwell Brown                             Expedition Natural Resources Inc.    02/04/05        3027/86
Janice Malone                                       Expedition Natural Resources Inc.    05/23/05        3112/178
Donnetter Williams                                  Expedition Natural Resources Inc.    06/07/05        3112/181

H. S. HOPE SURVEY A-325

Bob D. Hines & Vicki Renee Johnson                  Expedition Natural Resources Inc.    10/11/04        2966/256
Jacob C. Bell, Jr. et ux Ruby Wade Bell             GMX RESOURCES INC.                   09/26/05        3191/314

DAVID EARL SURVEY A-235

Lafayette Williams                                  Expedition Natural Resources Inc.    09/16/04        2950/92
Charles R. Williams                                 Expedition Natural Resources Inc.    09/16/04        2953/203
Gladys Fisher                                       Expedition Natural Resources Inc.    09/16/04        2950/89
Jennie Mae Shiner                                   Expedition Natural Resources Inc.    09/16/04        2950/98
Margarita Wilson                                    Expedition Natural Resources Inc.    09/16/04        2950/95
Clemmie Cooper Walton                               Expedition Natural Resources Inc.    10/03/04        2950/104
Henry Lawrence Cooper                               Expedition Natural Resources Inc.    10/03/04        2950/107
Annie Marie Thomas                                  Expedition Natural Resources Inc.    10/03/04        2950/113
Mabel Wilson                                        Expedition Natural Resources Inc.    10/03/04        2950/110
Bertha M. Cooper                                    Expedition Natural Resources Inc.    10/03/04        2950/101
Wille F. Cooper, III                                Expedition Natural Resources Inc.    10/03/04        3053/146
Sally Hesser Bates, et vir, Billy J. Bates          Expedition Natural Resources Inc.    03/07/05        3050/223
Francis Paul Cullum                                 Expedition Natural Resources Inc.    05/24/05        N/A
Brenda Moon                                         Expedition Natural Resources Inc.    05/24/05        N/A
James Brandon Cullum                                Expedition Natural Resources Inc.    05/24/05        N/A
Judy Fults, Travis Fults, Farrah Fults              Expedition Natural Resources Inc.    05/02/05        N/A
J. B. Williams                                      Expedition Natural Resources Inc.    05/23/05        N/A
Dorothy L. Smith                                    Expedition Natural Resources Inc.    05/23/05        N/A
Laveorn Clements                                    Expedition Natural Resources Inc.    05/23/05        N/A
LaRuth Brown                                        Expedition Natural Resources Inc.    05/23/05        3119/347
</TABLE>
                          Exhibit A. Part 1, Page -40-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
Sherba Manuel                                       Expedition Natural Resources Inc.    05/23/05        3119/335
Gwendolyn Williams                                  Expedition Natural Resources Inc.    05/23/05        N/A
Jewell Williams                                     Expedition Natural Resources Inc.    05/23/05        N/A
Ludene Harper                                       Expedition Natural Resources Inc.    05/23/05        3116/101
Norma Hollins                                       Expedition Natural Resources Inc.    05/23/05        3116/107
Audrey Williams Ashford                             Expedition Natural Resources Inc.    05/23/05        3116/104
Janice Williams                                     Expedition Natural Resources Inc.    05/23/05        3113/249
Cynthia Williams                                    Expedition Natural Resources Inc.    05/23/05        3113/246
Deborah Williams                                    Expedition Natural Resources Inc.    05/23/05        3113/243
Kenneth Ray Williams                                Expedition Natural Resources Inc.    05/23/05        3112/175
Christopher Williams                                Expedition Natural Resources Inc.    05/23/05        3128/40
Jerry Williams                                      Expedition Natural Resources Inc.    05/23/05        3128/43
Clarice Brazile                                     Expedition Natural Resources Inc.    05/23/05        N/A
John Williams                                       Expedition Natural Resources Inc.    05/23/05        N/A
Lorenzo Williams                                    Expedition Natural Resources Inc.    05/23/05        N/A
Karen Fults Fritschi                                Expedition Natural Resources Inc.    05/31/05        N/A
Jo Ann Fults Scott                                  Expedition Natural Resources Inc.    06/24/05        N/A
Velma Denson                                        Expedition Natural Resources Inc.    06/29/05        N/A
Brenda Williams                                     Expedition Natural Resources Inc.    06/29/05        N/A
Erma Perryman                                       Expedition Natural Resources Inc.    06/29/05        3178/117
Freddie Kendrick                                    Expedition Natural Resources Inc.    06/29/05        3170/199
Georgia Davis Johnson                               GMX RESOURCES INC.                   07/04/05        3164/155
Elvy Pharr Callies                                  Expedition Natural Resources Inc.    07/04/05        N/A
Margaret Jefferson Harvey                           Expedition Natural Resources Inc.    07/04/05        N/A
Charlotte C. Thomas                                 Expedition Natural Resources Inc.    07/08/05        N/A
James B. Crawley                                    Expedition Natural Resources Inc.    07/08/05        N/A
Mary Anne Convis                                    GMX RESOURCES INC.                   07/08/05        3164/147
Sarah McKay                                         Expedition Natural Resources Inc.    07/11/05        N/A
Orestus Cavness                                     GMX RESOURCES INC.                   07/15/05        N/A
Mary Ida Cavness Cross                              GMX RESOURCES INC.                   07/29/05        N/A
Jerry D Fults Est., by J.E. "Buddy" Fults,
Independent Executor                                GMX RESOURCES INC.                   08/01/05        3166/273
James Earl "Buddy" Fults                            GMX RESOURCES INC.                   08/01/05        3166/273
Frankie Crawford                                    GMX RESOURCES INC.                   08/26/05        N/A
Josephine Yancy                                     GMX RESOURCES INC.                   08/31/05        3185/128
Angelina Williams, Tommy Williams III, Lekeithon
Williams                                            Expedition Natural Resources Inc.    09/02/05        3191/311
Eura Lee Cavness, Jr.                               GMX RESOURCES INC.                   09/07/05        3189/250
Eura Jean Cavness Wallace                           GMX RESOURCES INC.                   09/07/05        3191/308
Maurice Cavness                                     GMX RESOURCES INC.                   09/07/05        N/A
Emmett Shankle, Jr.                                 GMX RESOURCES INC.                   09/09/05        3191/302
Annie Laurie Perkins                                GMX RESOURCES INC.                   09/14/05        N/A
Gregory Johnson                                     GMX RESOURCES INC.                   09/14/05        N/A
John Dixon, Jr.                                     GMX RESOURCES INC.                   09/14/05        N/A
Evelyn Warren                                       GMX RESOURCES INC.                   09/22/05        N/A
Hallard Green                                       GMX RESOURCES INC.                   09/26/05        N/A
Vernon G. Calvin, Jr.                               GMX RESOURCES INC.                   10/03/05        N/A
Corinthian Calvin White                             GMX RESOURCES INC.                   10/03/05        N/A
Velma Dixon                                         GMX RESOURCES INC.                   10/03/05        N/A
Phyllis Calvin Tucker                               GMX RESOURCES INC.                   10/03/05        N/A
</TABLE>
                          Exhibit A. Part 1, Page -41-
<PAGE>
<TABLE><CAPTION>
<S>                                                 <C>                                  <C>             <C>
THOMAS BORDEN SURVEY A-124

Francis Paul Cullum                                 Expedition Natural Resources Inc.    05/24/05        N/A
Brenda Moon                                         Expedition Natural Resources Inc.    05/24/05        N/A
James Brandon Cullum                                Expedition Natural Resources Inc.    05/24/05        N/A
Judy Fults, Travis Fults, Farrah Fults              Expedition Natural Resources Inc.    05/02/05        N/A
Jo Ann Fults Scott                                  Expedition Natural Resources Inc.    06/24/05        N/A
Jerry D Fults Est., by J.E. "Buddy" Fults,
Independent Executor                                GMX RESOURCES INC.                   08/01/05        3166/276
James Earl "Buddy" Fults                            GMX RESOURCES INC.                   08/01/05        3166/276
Karen Fults Fritschi                                Expedition Natural Resources Inc.    05/31/05        N/A
</TABLE>

                          Exhibit A. Part 1, Page -42-
<PAGE>

                               EXHIBIT "A", PART 1

Attached to and made a part of that certain Deed of Trust, Mortgage, Assignment,
Security Agreement, Fixture Filing and Financing Statement by and between GMX
RESOURCES INC., as Grantor and Capital One, National Association, as Grantee,
dated June 7, 2006
<TABLE><CAPTION>
<S>                                           <C>                               <C>           <C>
PANOLA COUNTY, TEXAS

                 WELL NAME                                   WI                    NRI        LOCATION
TIMMINS (SUN) #7                                         0.7691374              0.6603494     J. Findley Survey A-247

LESSOR                                        LESSEE                            LEASE DATE    BOOK/PAGE
Mrs. Marie Black Hogg, et vir                 A. M. Rozeman                     03/18/54      352/636
Mrs. Era Black Webb, et vir                   A. M. Rozeman                     03/18/54      352/632
R. W. Williams, et al                         Charles F. DeBardeleben, Jr.      01/19/55      446/555
Mrs. Florence J. Russenberger, et al          A. M. Rozeman                     06/17/53      427/343
W. C. Feazel, et al                           Barnwell Production Company       11/12/55      381/369
W. C. Feazel, et al                           Barnwell Production Company       09/16/55      381/26
Mrs. Ottelia A. McGill                        A. M. Rozeman                     06/18/53      427/378
John Tutle, et al                             A. M. Rozeman                     04/28/55      419/416
Mrs. Octavia Timmins, et al                   A. M. Rozeman                     04/29/53      338/325
A. F. Timmins, et us                          A. M. Rozeman                     04/29/54      338/308

                 WELL NAME                                   WI                    NRI        LOCATION
A. P. LISTON GU #1C TA                                   0.8582868              0.6901584     D. Tuttle Survey A-668
A. P. LISTON GU #1T TA                                   0.8582868              0.6901584     D. Tuttle Survey A-668
A. P. LISTON GU #3                                       1.0000000              0.8029148     D. Tuttle Survey A-668

LESSOR                                        LESSEE                            LEASE DATE    BOOK/PAGE
A. P. Liston, et ux                           Gerald J. McDermott               04/18/52      322/20
J. R. Bondurant                               T. C. Huddle                      05/22/52      322/343
R. L. (Lee) Carr, et ux                       D. D. Dunn                        02/24/44      N/A
J. Liston, et al                              D. D. Dunn                        02/08/44      157/279
Mettie McNair, et vir                         D. D. Dunn                        02/29/44      161/120
Mrs. S. E. Stephenson, et vir                 D. D. Dunn                        02/24/44      N/A
Madie J. Liston, a widow                      D. D. Dunn                        02/17/44      N/A
Madie J. Liston, a widow                      D. D. Dunn                        02/29/44      161/105
W. O. Roquemore, et ux                        D. D. Dunn                        02/24/44      159/367
John Wesley Walton, et ux                     Imperial Production Corporation   12/11/50      312/697
John Wesley Walton, et ux                     Imperial Production Corporation   05/22/52      325/371
Albert Stevenson, et ux                       Imperial Production Corporation   12/11/50      312/694
Albert Stevenson, et ux                       Imperial Production Corporation   05/22/52      325/231
Jimmie Gipson, et ux                          James R. Bondurant                12/11/50      313/7
Jimmie Gipson, et ux                          James R. Bondurant                05/22/52      325/404
Finis Benefield, et ux                        James R. Bondurant                12/11/50      313/11
Finis Benefield, et ux                        James R. Bondurant                05/22/52      325/233
</TABLE>
                           Exhibit A. Part 1, Page -1-
<PAGE>
<TABLE><CAPTION>
<S>                                           <C>                               <C>           <C>

                 WELL NAME                                   WI                    NRI        LOCATION
J. F. ROBERTS GU #1C                                     0.8319521              0.6503612     D. Tuttle Survey A-668
J. F. ROBERTS GU #1T                                     0.8319521              0.6503612     D. Tuttle Survey A-668

LESSOR                                        LESSEE                            LEASE DATE    BOOK/PAGE
Joseph Franklin Roberts, et al                Barnwell Drilling Company         8/5/1954      359/507
Mims Chapel Methodist Church                  C. F. DeBardeleben, Jr.           1/2/1955      367/250
J. B. Furrh, et al                            Panola Trading Company, Inc.      7/9/1957      407/413
Climmie Lee Page, et vir                      Barnwell Production Company       4/24/1957     405/400
L. C. Nelson Cox, et al                       Barnwell Production Company       4/24/1957     407/367
Mattie Pearl Cooper Morgan, et vir            Barnwell Production Company       4/24/1957     405/241
Vince Cox, et al                              Barnwell Production Company       4/24/1957     404/570
Ben Cooper, et al                             Barnwell Production Company       4/24/1957     404/293
J. B. Furrh, et al                            Panola Trading Company, Inc.      7/8/1957      407/417
Margaret B. Moller, et al                     Panola Trading Company, Inc.      5/31/1957     407/301
J. B. Furrh, et al                            Panola Trading Company, Inc.      7/9/1957      407/409
Effie Cooper Mitchell, et al                  Panola Trading Company, Inc.      6/7/1957      408/188
Rose Anderson Love, et al                     Panola Trading Company, Inc.      7/29/1957     409/174
Senice Cooper                                 Panola Trading Company, Inc.      7/20/1957     408/254
Mattie Pearl Morgan, et vir                   Panola Trading Company, Inc.      6/14/1957     408/311
L. C. Cox, et al                              Panola Trading Company, Inc.      6/6/1957      406/103
Andrew Cooper, et al                          Panola Trading Company, Inc.      5/31/1957     411/303
Johnnie Cooper, et al                         Panola Trading Company, Inc.      5/31/1957     406/99
Willie Sewell, et al                          Panola Trading Company, Inc.      6/6/1957      406/87
Austin Cooper                                 Panola Trading Company, Inc.      8/19/1957     409/153
Tom Cooper, et us                             Panola Trading Company, Inc       5/31/1957     405/538
H. T. Long                                    Panola Trading Company, Inc.      5/31/1957     405/578
J. B. Furrh, et al                            Panola Trading Company, Inc.      7/9/1957      408/319
W. M. Steele, et al                           Panola Trading Company, Inc.      5/24/1957     408/25
Lawrence Macon                                Panola Trading Company, Inc.      6/25/1957     UKN
Ben Hawkins, et al                            Panola Trading Company, Inc.      5/24/1957     407/630
Lawrence Macon                                Panola Trading Company, Inc.      5/24/1957     407/527
Lawrence Macon                                Panola Trading Company, Inc.      6/25/1957     407/172
Leona Stafford, et al                         Panola Trading Company, Inc.      5/24/1957     407/180
Signora L. Green                              Panola Trading Company, Inc.      5/24/1957     407/176
Allie Bell Taylor, et al                      Panola Trading Company, Inc.      5/24/1957     406/95
John D. Furrh, Jr.                            Panola Trading Company, Inc.      7/9/1957      407/432
Johnnie Cooper, et us                         Panola Trading Company, Inc.      5/24/1957     405/397
John D. Furrh, Jr.                            Panola Trading Company, Inc.      7/9/1957      407/435

                 WELL NAME                                   WI                     NRI       LOCATION
ROBERTS MULLINS #1T                                      0.6920552               0.4817262    W. Mann Survey A-431

LESSOR                                        LESSEE                            LEASE DATE    BOOK/PAGE
O. B. Mullins, et ux                          G. L. Blaxton, Jr.                3/10/1952     319/557
</TABLE>
                           Exhibit A. Part 1, Page -2-
<PAGE>
<TABLE><CAPTION>
<S>                                           <C>                               <C>           <C>

                 WELL NAME                                   WI                    NRI        LOCATION
A. WILLIAMS GU #1C                                       0.8599137              0.6469630     F.G. Timmins Survey A-664
A. WILLIAMS #2 TA                                        1.0000000              0.7229680     H. Roberts Survey A-562
FURRH ESTATE #1 A TA                                     0.7897986              0.7271672     F.G. Timmins Survey A-664

LESSOR                                        LESSEE                            LEASE DATE    BOOK/PAGE
J. D. Furrh, et al                            J. B. Dial                        02/06/45      197/132
Mrs. C. C. Steel, et al                       J. B. Dial                        02/26/45      330/552
Security State Bank of Elysian Fields, Texas  J. B. Dial                        02/06/45      197/119
B. H. Timmins, et ux                          J. B. Dial                        02/06/45      281/11
J. B. Furrh, et al                            J. B. Dial                        02/06/45      197/12
J. B. Furrh, et al                            J. B. Dial                        02/06/45      276/463
Rufus Richardson, et al                       R. H. Pendleton                   05/10/54      354/633
Lloyd Richardson, et al                       J. B. Dial                        05/10/54      354/638
Obelia Herrod Allen                           Harry D. Kahn                     10/02/53      425/594
Obelia Herrod Allen                           Harry D. Kahn                     11/10/54      443/565
Acie Johnson, Jr., et us                      Marvin E. Pollard                 09/08/54      439/295
Arnold Lewis Williams                         J. G. Barker                      08/25/53      341/452
Ophelia Timmins                               J. G. Barker                      08/28/53      341/455
Asbie Cobb, et ux                             Marvin E. Pollard                 05/12/54      355/310

                 WELL NAME                                  WI                     NRI        LOCATION
JOE ROBERSON #1                                          0.346818               0.271682      BK 367, P 214
JOE ROBERSON #2                                          0.346818               0.271682      BK 367, P 214
JOE ROBERSON #3                                          0.346818               0.271682      BK 367, P 214

LESSOR                                        LESSEE                            LEASE DATE    BOOK/PAGE
Tony Williams, Jr., et ux                     James R. Bondurant                12/11/1950    313/4
Tony Williams, Jr., et ux                     J. R. Bondurant                   5/2/1952      325/369
Joe Roberson, et ux                           James R. Bondurant                12/11/1950    313/17
Joe Roberson, et ux                           J. R. Bondurant                   5/22/1952     325/365
Henry Gipson, et ux                           James R. Bondurant                12/11/1950    313/1
Henry Gipson, et ux                           J. R. Bondurant                   5/22/1952     325/367
Lonzell Beecham, et ux                        James R. Bondurant                12/11/1950    313/14
Lonzell Beecham, et ux                        J. R. Bondurant                   5/22/1952     325/400
Roosevelt Walton, et ux                       James R. Bondurant                12/11/1950    313/24
Roosevelt Walton, et ux                       J. R. Bondurant                   5/22/1952     325/402
Tommie Mason, et ux                           James R. Bondurant                12/11/1950    312/691
Tommie Mason, et ux                           J. R. Bondurant                   5/22/1952     326/166
Mrs. Annie Mae Hilliard, et al                T. C. Huddle                      2/18/1952     320/41
Albert Stevenson, et ux                       J. R. Bondurant                   12/11/1950    312/694
Albert Stevenson, et ux                       J. R. Bondurant                   5/22/1952     325/231
John Wesley Walton                            James R. Bondurant                12/11/1950    312/697
</TABLE>
                           Exhibit A. Part 1, Page -3-
<PAGE>

                                EXHIBIT A, PART 2

Attached to and made a part of that certain Deed of Trust, Mortgage, Assignment,
Security Agreement, Fixture Filing and Financing Statement by and between GMX
RESOURCES INC., Grantor, and Capital One, National Association, as Grantee,
dated June 7, 2006

---------------------------------------------------  ----------  ---------------
                         Declaration of Unit         Date Filed  Harrison County
                                                                    Book/Page
---------------------------------------------------  ----------  ---------------
Hancock Gas Unit #1, 352 Acres                        04/06/00      2075 / 61
Correction                                            06/__/01      ________
---------------------------------------------------  ----------  ---------------
Sanders Moore #1 Gas Unit 704 Acres                   04/09/01     2225 / 123
---------------------------------------------------  ----------  ---------------
Sanders Moore #1 Gas Unit 320 Acres                   04/09/01     2225 / 118
---------------------------------------------------  ----------  ---------------
Annie Perry #1 Gas Unit 701 Acres                     03/22/01      2217 / 20
---------------------------------------------------  ----------  ---------------
Barnwell-Wilson-Maxmillion Gas Unit #1 703.21 Acres   __/__/60      539 / 55
---------------------------------------------------  ----------  ---------------
A. P. Liston Gas Unit #1                              10/25/54      363 / 335
---------------------------------------------------  ----------  ---------------
Dowas Balous Gas Unit #1 704 Acres  (Corrected)       08/06/01     2282 / 135
Original                                              05/22/00     2091 / 239
---------------------------------------------------  ----------  ---------------
N. P. Cockrell Gas Unit #1 704 Acres                  __/__/57      486 / 61
Amendment                                             __/__/57      496 / 144
---------------------------------------------------  ----------  ---------------
Patsy Keyes Gas Unit 412.456 Acres                    05/28/04     2753 / 247
---------------------------------------------------  ----------  ---------------
Barnwell (Barker-Lentz) Oil Unit #5                   05/__/60      543 / 332
---------------------------------------------------  ----------  ---------------
Rains Gas Unit 357.618 Acres                          09/16/04     2929 / 144
---------------------------------------------------  ----------  ---------------
Bryant #1 Gas Unit 494.879 Acres                      07/21/04     2889 / 258
---------------------------------------------------  ----------  ---------------
Lawless Gas Unit #1                                                 459 / 388
Reformed 04/10/87                                                   1143 / 56
Reformed 10/07/87                                                  1160 / 402
---------------------------------------------------  ----------  ---------------
Richardson Gas Unit 340.76 Acres                      07/30/04     2897 / 120
---------------------------------------------------  ----------  ---------------
Barnwell-Waskom Oil Unit #8 81.13 Acres               __/__/62      571 / 63
---------------------------------------------------  ----------  ---------------
North Blocker Gas Unit #1                             __/__/57      488 /387
Amended 02/12/59 668.15 Acres                                       522 / 79
---------------------------------------------------  ----------  ---------------

                           Exhibit A. Part 2, Page -1-
<PAGE>

---------------------------------------------------  ----------  ---------------
Blocker Estate Travis Peak Gas Unit #2 668.15 Acres   __/__/59      522 / 137
---------------------------------------------------  ----------  ---------------
Bradshaw O'Brien #1 Gas Unit 321.72 Acres             05/12/04      2841 / 6
---------------------------------------------------  ----------  ---------------
George Neal Gas Unit #1 704 Acres                     __/__/59      528 / 574
---------------------------------------------------  ----------  ---------------
Furrh Gas Unit #3                                                   993 / 206
Amended 01/27/89 689.12 Acres                                       1211 / 36
Amended                                                            1228 / 315
---------------------------------------------------  ----------  ---------------
Furrh - Lewis Gas Unit #2 689.17 Acres                __/__/89     1288 / 319
---------------------------------------------------  ----------  ---------------
Floyd Wilson Oil Unit #1_4 80 Acres                   __/__/91     1283 / 634
---------------------------------------------------  ----------  ---------------

                           Exhibit A. Part 2, Page -2-
<PAGE>

                                EXHIBIT A, PART 3

Attached to and made a part of that certain Deed of Trust, Mortgage, Assignment,
Security Agreement, Fixture Filing and Financing Statement by and between GMX
RESOURCES INC., Grantor, and Capital One, National Association, as Grantee,
dated June 7, 2006

                                    CONTRACTS

     The Participation Agreement dated December 29, 2003, by and among Penn
     Virginia Oil & Gas Corporation, the Borrower, and Expedition Natural
     Resources Inc. and Endeavor Pipeline Inc., as amended by the First
     Amendment dated February 27, 2004, the Second Amendment dated March 9,
     2004, the Third Amendment dated April 6, 2004, the Fourth Amendment dated
     August 11, 2004, the Fifth Amendment dated March 2, 2005, and as further
     amended after the Closing Date in accordance with this Agreement. Penn
     Virginia Oil & Gas, L.P., a wholly owned subsidiary of Penn Virginia
     Corporation, is the successor to Penn Virginia Oil and Gas Corporation
     under the Participation Agreement.

     Operating Agreement dated May 9, 1989, for the A. P. Liston Unit, by Soniat
     Exploration Company as initial Operator.

     Any Operating Agreements by Penn Virginia Oil & Gas Corporation, as
     Operator, and Borrower, as non-Operator, including Operating Agreements
     dated December 5, 2003.

                           Exhibit A. Part 3, Page -1-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]