SECURITIES AND EXCHANGE COMMISSION
                             Washington, DC  20549
                                   FORM 10-K
               Annual Report Pursuant to Section 13 or 15(d) of
                      The Securities Exchange Act of 1934


For Fiscal Year Ended December 31, 2000            Commission File Number 0-9669

                    CALCASIEU REAL ESTATE AND OIL CO., INC.
            (Exact Name of registrant as specified in its charter)

                 Louisiana                               72-0144530
      (State of other jurisdiction of                 (I.R.S. Employer
      incorporation or organization)                 Identification No.)

            One Lakeside Plaza                               70601
          Lake Charles, Louisiana                          (Zip Code)
  (Address of principal executive offices)

      Registrant's telephone number, including area code: (337) 494-4256

          Securities registered pursuant to Section 12(b) of the Act:

           Title of each Class               Name of each exchange
           -------------------               ---------------------
                                              on which registered
                                              -------------------

                  None                          Not Applicable


          Securities registered pursuant to Section 12(g) of the Act:


                          Common Stock, No Par Value
                               (Title of Class)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 of 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.              Yes    x     No_______
                                                    -------

State the aggregate market value of the voting stock held by non-affiliates of
the registrant. Trading in the Company's common stock is limited and sporadic
and its common stock has no readily established market value.

Indicate the number of shares outstanding of each of the registrant's classes of
common stock as of the latest practicable date.  Common Stock, No Par Value,
1,951,446 shares outstanding at February 28, 2001.

                      Documents Incorporated by Reference

               Document                                Part of Form 10K
               --------                                ----------------

      Definitive Proxy Statement                       Parts I and III


                                     Part 1


Item 1. BUSINESS
        --------

     The registrant, Calcasieu Real Estate and Oil Co., Inc., (the "Company")
was incorporated under Louisiana law in 1930 to hold real estate and royalty
interests located in Southwest Louisiana.

     The principal office of the Company is One Lakeside Plaza, Lake Charles,
Louisiana. The business of the Company is conducted primarily at the principal
offices of its officers, who have other full-time employment.

     The principal business of the Company has been the ownership and
preservation of the assets acquired at the Company's organization and
subsequently. The Company's primary activities have consisted of leasing its
properties and collecting rents and royalties derived therefrom. The mineral
interests of the Company are located in the Parishes of Calcasieu, Allen,
Acadia, Cameron, St. Landry, St. Mary, Vermilion and Jefferson Davis in
Louisiana. The Company owns approximately 12,170 acres of land in fee in the
Parishes of Allen, Beauregard, Calcasieu, Cameron, Jefferson Davis, LaFourche,
Sabine, St. Landry and Vermilion in Louisiana. Most of the Company's land and
mineral interests are located within 100 miles of the City of Lake Charles, in
southwestern and central Louisiana.

     Of this total, 5,701 represents a 1/6th interest in 34,189 acres, which is
managed by Walker Louisiana Properties, a joint venture consisting of the land
owners. The Company also owns a 40% interest in 1,577 of these acres. Of the
Walker Louisiana acreage, the Company does not own minerals on the acres.

     In April, 1992, the Company purchased a 100% interest in the surface rights
and a 50% interest in the mineral rights to 952 acres, consisting of mainly
timber lands located in Beauregard and Calcasieu Parishes. There is no
production on this acreage.

     On October 29, 1997, Calcasieu Real Estate and Oil Co., Inc. purchased
3,496 acres of agricultural land in Cameron Parish, Louisiana, from Amoco
Production for $1,663,000. No minerals were included in the purchase.

Operations
- ----------

     The Company's income is derived primarily from its oil and gas properties.
Agriculture and timber income are the next largest sources of income. Additional
oil and gas income in the future will come from discoveries on the Company's
land.

                                       1


Industry Segments
- -----------------

     The purchase of additional real estate in 1990, 1992, 1997, and 1999 has
created "Agricultural Properties" and "Timber Properties" as additional industry
segments because revenues from these properties exceed 10% of total revenues.
The Company also receives mineral rentals and royalties from some of these
properties. Note 7 to the Financial Statements on page 24 sets forth information
on the business segments.

Employees
- ---------

     The Company currently employs a total of five persons in a part-time
capacity. The Company is subject to no union contracts nor does the Company have
any pension, profit sharing or deferred compensation plans.

Customers
- ---------

     The Company had one customer, the sales to which equal or exceed 10% of the
Company's total revenues. In 2000, sales to Neumin Production accounted for 65%
of revenues.

Item 2. PROPERTIES
        ----------

     Until early 1990, the Company owned 2,022 acres in fee, a 50% undivided
interest in 440 acres, and a 40% undivided interest in 1,748 acres of immovable
(real) property located in the parishes of Allen, Beauregard, Calcasieu,
Jefferson Davis, Sabine and St. Landry in Louisiana. The Company also owns a 20%
interest in the minerals under approximately 3,330 surface acres, and a 40%
interest in the minerals under approximately 160 surface acres, located in the
parishes of Acadia, Allen, Cameron, Jefferson Davis, St. Landry, St. Mary and
Vermilion in Louisiana. All of the foregoing property is located in southwestern
and central Louisiana, within approximately 100 miles of the City of Lake
Charles. Approximately half of the acreage in which only mineral interests are
held is in oil and gas production. In addition, the Company owns fractional
royalty interest in 36 properties covering 6,040 gross acres in eight parishes
in Louisiana.

     In February of 1990 the Company acquired a 12.5% undivided fee interest in
34,309 acres (4,289) net acres) located in the Louisiana parishes of Allen,
Beauregard, Calcasieu, Cameron, Jefferson Davis, Sabine and Vermilion, and in
1999 the Company acquired an additional 4.17% interest in the same acreage. A
portion of these lands are the same as the 1,748 acres in which the company
owned a 40% position described in the first paragraph above. This property
consists of 17,088 gross acres of agriculture land, 7,572 acres of commercial
timber, 4,196 acres in pasture, 4,253 acres of marsh land and 1,200 acres for
future subdivision as it is contiguous to the city limits of Lake Charles. The
company participates in oil and gas production in Southeast Lunita Field, Lake
Arthur Field, Edgerly Field, Welsh Field and North Indian Village Field. The
largest oil and gas income in 2000 came from the company's 50% ownership in 443
acres that are located in the North English Bayou Field, Calcasieu Parish,

                                       2


developed and operated by Neumin Production Company. The Company has also
participated for its 1/6th interest in the granting of oil and gas leases which
are yet to be drilled on Walker Louisiana acreage.

     In April of 1992, the Company purchased 952 acres of timberland in
Calcasieu and Beauregard Parishes for $475,000.

     On October 29, 1997, Calcasieu Real Estate and Oil Co., Inc. purchased
3,496 acres of land in Cameron Parish, Louisiana, from Amoco Production Company
for $1,663,000.

     The table below shows, for the years ended December 31, 2000, December 31,
1999, and December 31, 1998, net gas produced in thousands of cubic feet (MCF)
and net oil (including condensate and natural gas liquids) produced in barrels
(Bbl), average sales prices and average production costs, relating to oil and
gas attributable to the royalty interests and working interest held by the
Company.



                                                     Year Ended               Year Ended               Year Ended
                                                      12/31/98                 12/31/99                 12/31/00
                                                     ----------               ----------               ----------
                                                                                              
Net gas produced (MCF)                                 169,595                  364,883                  338,352

Average gas sales price (Per MCF)(1)                  $   2.31                 $   2.28                 $   3.56

Net Oil Produced (Bbl)                                   8,196                   32,987                   10,258

Average Oil Sales price (Per Bbl)(1)                  $  13.28                 $  16.58                 $  27.55

Average sales price of oil and gas per                $   2.47                 $   3.63                 $   3.72
 MCF equivalent (1)(2)

Average production cost of oil and gas
 per MCF equivalent (2)
     Royalty Interests                                     .11                      .13                      .16

     Working Interests                                    3.06                     1.48                      .81


(1) Before deduction of production
and severance taxes.

(2) Oil production is converted to
MCF equivalents at the rate of 6
MCF's per barrel, representing the
approximate relative energy content
of oil and natural gas.

Item 3. LEGAL PROCEEDINGS
        -----------------

     The Company is a co-defendant in a lawsuit filed by owners of eighty acres,
which the defendants owned the minerals. The landowners are asserting that the
mineral interest proscribed. Company's counsel has advised that he cannot offer
an opinion on the outcome awaiting review of the facts. The defendants intend to
defend the suit vigorously.

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
        ---------------------------------------------------

     There were no matters submitted to security holders during the fourth
quarter.

                                       3


                                    PART II
                                    -------

Item 5.   MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED
          -----------------------------------------------------
          SECURITY HOLDER MATTERS
          ------------------------

          As of February 28, 2001, the common stock of Calcasieu Real Estate and
Oil Co., Inc. was owned by 724 stockholders. During the three years preceding
the date hereof, there has been only limited and sporadic trading in the
Company's Common Stock, principally among its shareholders.

          In the year ended December 31, 2000, 152,500 shares were traded with a
high of 4 1/2 and a low of 2 3/4. The last trade during this period was on
December 14, 1999, for 8,000 shares at a price of 4 1/2. Below is the trading
range.

                                    Volume           High          Low
                                    ------           ----          ---
      01/01/99 - 03/31/99           12,900           4 1/2          4
      04/01/99 - 06/30/99           58,900           6              4 1/2
      07/01/99 - 09/30/99           27,100           8              5 1/4
      10/01/99 - 12/31/99           53,600           6              4 1/4

Dividends were paid per share on Common Stock as follows by record date:, March
27, 1998, $.03; June 26, 1998, $.03; September 30, 1998, $.03; September 30,
1999, $.03; December 28, 1999, $.05; March 29, 2000, $.05; June 30, 2000, $.05;
September 27, 2000, $.05; December 29, 2000, $.05 regular and $.05 extra. There
are no restrictions on the paying of dividends.

Item 6.  SELECTED FINANCIAL DATA
         -----------------------


                                     Ended          Ended          Ended          Ended          Ended
                                    12/31/96       12/31/97       12/31/98       12/31/99       12/31/00
                                  ----------     ----------     ----------     ----------     ----------
                                                                               
Revenues                          $  672,294     $  967,632     $  897,027     $2,646,491     $2,497,118

Income before income taxes         1,244,583        776,445        585,182      2,279,814      2,144,821

Earnings per common share (1)            .40            .26            .20            .78            .73

Total assets                      $3,445,721     $4,307,077     $4,759,327     $5,212,540     $6,035,717

Cash Dividends declared per
 common stock                            .09            .12            .09            .08            .25


(1)  Earnings per common share presented are based on the weighted average
     outstanding shares of about 1,955,000 in 2000, 1,979,000 in 1999, 1,995,000
     in 1998, 1,997,000 in 1997 and 1,997,000 in 1996.

                                       4


Item 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          -------------------------------------------------
          CONDITION AND RESULTS OF OPERATIONS
          -----------------------------------

          Income after taxes was down 7% in 2000 from 1999. The Company had a
decrease in revenues of 6% in 2000 from 1999 and a decrease in expenses of 4%.
The increase in gas prices more than offset the decrease in gas production in
2000 from 1999. The decrease in oil production in 2000 from 1999 was not offset
by the increase in oil prices. Timber sales increased 49% in 2000 over 1999 due
in large part to cuttings to recoup timber damaged by fire.

          Information on the oil and gas properties is included in the notes to
financial statements, specifically as to reserve quantities and standardized
measure of discounted net cash flows. Both of those are unaudited.

          Management believes that the company's revenues will be sufficient to
meet its existing capital needs and the needs of its anticipated future
operations. Long-term trends will depend upon the ability of management to find
new production to replace the depletion of the Company's present minerals.

Item 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
          -------------------------------------------

          All Financial statements required by Regulation S-X are listed in the
Table of Contents to Financial Statements and Supplemental Schedules appearing
immediately after the signature page of this Form 10K and are included herein by
reference. See Item 14.

Item 9.   DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
          ----------------------------------------------------

          Not applicable

                                   PART III

Item 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
          --------------------------------------------------

          The information required by Item 10 as to directors is included in the
Registrant's definitive proxy statement to be filed pursuant to Section 14(a) of
the Securities Exchange Act of 1934 and is included herein by reference.

Executive officer of Registrant as of February, 2001, are as follows:

          Name                  Age            Position with Registrant
          ----                  ---            ------------------------

     Arthur Hollins, III        70        President & Director
     William D. Blake           68        Vice President, Treasurer and Director
     Charles D. Viccellio       67        Vice President, Secretary and Director

                                       5


The occupations of such excessive officers during the last five years and other
principal affiliations are:

        Name
        ----

Arthur Hollins, III           Director of the Company since 1975; President of
                              the Company since 1979; Chairman of the Board at
                              the First National Bank of Lake Charles from 1968
                              to 1999; President of Bank One, Southwest
                              Louisiana, from 1998 to April, 1999.

William D. Blake              Director of the Company since 1966; Secretary-
                              Treasurer of the Company from 1966-1979; Vice-
                              President and Treasurer of the Company since 1979;
                              President of Lacassane Co., Inc. and Howell
                              Industries, Inc.; Director of Sweetlake Land and
                              Oil Co., Inc.

Charles D. Viccellio          Vice-President and Secretary of the Company since
                              1997 and Director of the Company since 1996.
                              Partner in the law firm of Stockwell, Sievert,
                              Viccellio, Clements & Shaddock, LLP.


Item 11.  EXECUTIVE COMPENSATION
          ----------------------

     The information required by Item 11 is included in the Registrant's
definitive proxy statement to be filed pursuant to Section 14(a) of the
Securities and Exchange Act of 1934 and is included herein by reference.

Item 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
          ---------------------------------------------------
          MANAGEMENT
          ----------

     The information required by Item 12 is included in the Registrant's
definitive proxy statement to be filed pursuant to Section 14(a) of the
Securities Exchange Act of 1934 and is included herein by reference.

                                    PART IV

Item 13.  EXHIBITS, FINANCIAL STATEMENTS, SCHEDULES AND REPORTS ON FORM 8-K
          -----------------------------------------------------------------

        (a)  The following documents are filed as part of the report:

             1.   All Financial Statements. See Table of Contents to Financial
                  Statements and schedule on page 8.
             2.   Financial Statement Schedules. See Table of Contents to
                  Financial Statements and Schedules on page 8.
             3.   List of Exhibits - None

        (b)  Reports on Form 8-K - None

                                       6


                                  SIGNATURES

     Pursuant to the requirement of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this registration statement
to be signed on its behalf by the undersigned, thereunto duly authorized.

                         CALCASIEU REAL ESTATE AND OIL CO., INC.


                         BY:  /s/ Arthur Hollins, III
                             -----------------------------------
                              Arthur Hollins, III, President
Dated March 5, 2001

     Pursuant to the requirements of the Securities Act of 1934, this report has
been signed below by the following persons in the capacities with regard to
Calcasieu Real Estate and Oil Co., Inc. and on the date indicated:

                                      President
  Arthur Hollins, III                 (Chief Executive Officer and Director)
  ------------------------------
                                      Vice President & Treasurer

  William D. Blake                    (Principal Financial Officer and Director)
  ------------------------------

  Charles D. Viccellio                Vice President & Secretary, (Director)
  ------------------------------

  Henry C. Alexander                  Director
  ------------------------------

  Troy A. Freund                      Director
  ------------------------------

  Laura A. Leach                      Director
  ------------------------------

  Frank O. Pruitt                     Director
  ------------------------------

  B. James Reaves, III                Director
  ------------------------------

  Mary W. Savoy                       Director
  ------------------------------


Dated:  March 5, 2001

                                       7


                     CALCASIEU REAL ESTATE & OIL CO., INC.

                            Lake Charles, Louisiana







                                C O N T E N T S



                                                                    Page
                                                                 
INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS
        AND SUPPLEMENTARY INFORMATION                                9

FINANCIAL STATEMENTS

        Balance sheets                                              10
        Statements of income                                        11
        Statements of changes in stockholders' equity            12-13
        Statements of cash flows                                 14-15
        Notes to financial statements                            16-28

SUPPLEMENTARY INFORMATION

        Property, plant and equipment                               29
        Accumulated depreciation, depletion and amortization        30



SCHEDULE OMITTED

        Schedules, other than those listed above, have been omitted
        because of the absence of the conditions under which they
        are required or because the required information is included
        in the financial statements or notes thereto.


[LETTERHEAD OF McELROY, QUIRK & BURCH]


                          INDEPENDENT AUDITOR'S REPORT


To the Board of Directors
Calcasieu Real Estate & Oil Co., Inc.
Lake Charles, Louisiana


     We have audited the accompanying balance sheets of Calcasieu Real Estate &
Oil Co., Inc. as of December 31, 2000 and 1999, and the related statements of
income, changes in stockholders' equity, and cash flows for the years ended
December 31, 2000, 1999 and 1998. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits. We did not audit the
financial statements of the Co-owners' Undivided Two-Thirds Interest in Walker
Louisiana Properties as of and for the year ending December 31, 1998, of which
Calcasieu Real Estate & Oil Co., Inc. owns a twenty-five percent undivided
interest. The twenty-five percent undivided interest consists of total assets of
$1,781,597 as of December 31, 1998, and total revenues of $443,421 for the year
then ended. Those statements were audited by other auditors whose report has
been furnished to us, and in our opinion, insofar as it relates to the amounts
included for the Co-Owners' Undivided Two-Thirds Interest in Walker Louisiana
Properties, is based solely on the report of the other auditors.

     We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

     In our opinion, based on our audits and the report of the other auditors,
the financial statements referred to above present fairly, in all material
respects, the financial position of Calcasieu Real Estate & Oil Co., Inc. as of
December 31, 2000 and 1999, and the results of its operations and its cash flows
for the years ended December 31, 2000, 1999 and 1998, in conformity with
generally accepted accounting principles.

     Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary information on pages 31
and 32 is presented for the purposes of additional analysis and is not a
required part of the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, is fairly stated in all material respects in
relation to the basic financial statements taken as a whole.


/S/ McElroy, Quirk & Burch
Lake Charles, Louisiana
March 2, 2001

                                       9


                     CALCASIEU REAL ESTATE & OIL CO., INC.


                                BALANCE SHEETS
                          December 31, 2000 and 1999



             ASSETS                                                   2000         1999
                                                                   ----------   ---------
                                                                          
CURRENT ASSETS
        Cash and cash equivalents                                  $  638,063   $  471,821
        Accounts receivable                                           129,220      452,955
        Inventory-harvested crops                                       4,427       10,281
        Prepaid income taxes                                           74,878           --
        Prepaid expense and other                                       3,309          674
                                                                  -----------   ----------
                        Total current assets                          849,897      935,731
                                                                  -----------   ----------
SECURITIES AVAILABLE-FOR-SALE                                       1,058,359       76,267
                                                                  -----------   ----------
PROPERTY AND EQUIPMENT (less accumulated depreciation,
        depletion and amortization of $449,424 in 2000 and
        $450,507 in 1999)                                              97,103       98,563
        Timber (less accumulated depletion of $258,968 in 2000
                and $213,876 in 1999)                                 414,458      486,188
        Land                                                        3,615,900    3,615,791
                                                                  -----------   ----------
                                                                    4,127,461    4,200,542
                                                                  -----------   ----------
                                                                   $6,035,717   $5,212,540
                                                                  ===========   ==========
   LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
        Trade payables and accrued expenses                        $   15,082   $   11,144
        Dividends payable                                             195,504       98,938
        Income taxes payable:
                Current                                                    --      151,282
                Deferred, net                                          30,614       20,173
                                                                  -----------   ----------
                        Total current liabilities                     241,200      281,537
                                                                  -----------   ----------
STOCKHOLDERS' EQUITY
        Common stock, no par value; 3,000,000 shares authorized;
                2,100,000 shares issued                                72,256       72,256
        Retained earnings                                           6,004,642    5,059,618
        Accumulated other comprehensive income                         24,448       12,086
                                                                  -----------   ----------
                                                                    6,101,346    5,143,960
        Less cost of treasury stock (2000 144,956 shares and
                1999 125,648 shares)                                  306,829      212,957
                                                                  -----------   ----------
                                                                    5,794,517    4,931,003
                                                                  -----------   ----------
                                                                   $6,035,717   $5,212,540
                                                                  ===========   ==========


See Notes to Financial Statements.

                                       10


                      CALCASIEU REAL ESTATE & OIL CO., INC.

                              STATEMENTS OF INCOME
                  Years Ended December 31, 2000, 1999 and 1998




                                                              2000           1999           1998
                                                           ----------     ----------     ----------
                                                                                
Revenues                                                   $2,497,118     $2,646,491     $  897,027
                                                           ----------     ----------     ----------
Costs and expenses:
        Oil and gas production                                 78,176         84,605         50,511
        Agricultural                                           10,601         12,886         10,935
        Timber                                                 61,359         45,651         17,324
        Depreciation, depletion and amortization               38,490         20,484         16,817
                                                           ----------     ----------     ----------
                                                              188,626        163,626         95,587
                                                           ----------     ----------     ----------

                        Income from operations              2,308,492      2,482,865        801,440
                                                           ----------     ----------     ----------
Other income (expense):
        Interest income                                        38,907         22,508         17,022
        Dividends on stock                                     11,402          2,159          1,799
        Realized gain on sale of investments in
                available-for-sale securities                      --             --         13,172
        Gain on sale of assets                                    414         31,536             --
        General and administrative                           (214,394)      (207,962)      (180,381)
        Interest expense                                           --        (51,292)       (67,870)
                                                           ----------     ----------     ----------
                                                             (163,671)      (203,051)      (216,258)
                                                           ----------     ----------     ----------

                        Income before income taxes          2,144,821      2,279,814        585,182
                                                           ----------     ----------     ----------
Federal and state income taxes:
        Current                                               706,592        732,622        180,987
        Deferred                                                2,200          2,132            264
                                                           ----------     ----------     ----------
                                                              708,792        734,754        181,251
                                                           ----------     ----------     ----------
                        Net income (per common share):
                          2000 $.73; 1999 $.78; 1998
                          $.20                            $ 1,436,029     $1,545,060    $   403,931
                                                          ===========     ==========    ===========


See Notes to Financial Statements.

                                      11


                      CALCASIEU REAL ESTATE & OIL CO., INC.

                  STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                  Years Ended December 31, 2000, 1999 and 1998



                                                                               Accumulated
                                                                                  Other         Capital
                                                  Comprehensive    Retained   Comprehensive      Stock         Treasury
                                                      Income       Earnings       Income         Issued         Stock
                                                  -------------   ---------   -------------     --------      ----------
                                                                                               
Balance, January 1, 1998                          $       --     $3,445,006   $    7,364       $   72,256     $  137,703

Comprehensive income:
        Net income                                   403,931        403,931           --               --             --

Other comprehensive income:
        Unrealized gains on securities
                available for sale:
                Unrealized holding gains
                  occurring during period net
                  of taxes of $2,949                   4,423             --           --               --             --
                Less reclassification
                  adjustment for gains included
                  in net income, net of taxes
                  of $5,269                           (7,903)            --           --               --             --
                                                  ----------
        Other comprehensive income, net
                of tax                                (3,480)            --       (3,480)              --             --
                                                  ----------

        Total comprehensive income                $  400,451
                                                  ==========
Purchase of treasury stock                                               --           --               --         55,650
Dividends                                                          (179,744)          --               --             --
                                                                 ----------     --------       ----------     ----------

Balance, December 31, 1998                                        3,669,193        3,884           72,256        193,353

Comprehensive income:
        Net income                                $1,545,060      1,545,060           --               --             --

Other comprehensive income:
        Unrealized gains on securities
                available for sale:
                Unrealized holding gains
                  occurring during period net
                  of taxes of $5,568                   8,202             --           --               --             --
                                                  ----------
        Other comprehensive income, net
                of tax                                 8,202             --        8,202               --             --
                                                  ----------
        Total comprehensive income                $1,553,262
                                                  ==========



                                                      (continued on next page)

                                 12


                      CALCASIEU REAL ESTATE & OIL CO., INC.

                  STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                  Years Ended December 31, 2000, 1999 and 1998
                                   (Continued)




                                                                            Accumulated
                                                                               Other        Capital
                                              Comprehensive   Retained     Comprehensive     Stock    Treasury
                                                  Income      Earnings         Income        Issued      Stock
                                              -------------  ----------    --------------   --------  ---------
                                                                                        
Purchase of treasury stock                                            --           --             --    19,604
Dividends                                                       (158,300)          --             --        --
Refund of prior year unclaimed
        dividends and other                                        3,665           --             --        --
                                                             -----------     --------       --------  --------
Balance, December 31, 1999                                     5,059,619       12,086         72,256   212,957

Comprehensive income:
        Net income                              $1,436,029     1,436,029

Other comprehensive income:
        Unrealized gains on securities
                available for sale:
                Unrealized holding gains
                  occurring during period net
                  of taxes of $8,240                12,362
                                                ----------
        Other comprehensive income, net
                of tax                              12,362                     12,362
                                                ----------
        Total comprehensive income              $1,448,391
                                                ==========
Purchase of treasury stock
Dividends                                                       (492,548)                               93,872
Refund of prior year unclaimed
        dividends and other                                        1,542
                                                             -----------     --------       --------  --------
Balance, December 31, 2000                                   $ 6,004,642     $ 24,448       $ 72,256  $306,829
                                                             ===========     ========       ========  ========


See Notes to Financial Statements.

                                      13


                      CALCASIEU REAL ESTATE & OIL CO., INC.

                            STATEMENTS OF CASH FLOWS
                  Years Ended December 31, 2000, 1999 and 1998



                                                                       2000            1999           1998
                                                                   -------------   ------------   -----------
                                                                                         
CASH FLOWS FROM OPERATING ACTIVITIES
        Net income                                                  $ 1,436,029    $  1,545,060   $   403,931
        Noncash (income) expenses included in net income:
                Depreciation, depletion and amortization                 39,282          20,484        16,817
                Realized (gains) on sale of available-for-sale
                  securities                                                 --              --       (13,172)
                Gain on sale of assets                                     (414)        (31,536)           --
                Loss on asset retirement                                    883             926            --
                Deferred income tax                                       2,200           2,132           264
                Change in assets and liabilities:
                  (Increase) decrease in trade accounts and
                    other receivables                                   323,735        (301,289)      (83,627)
                  (Increase) decrease in inventory                        5,855           1,695         1,641
                  (Increase) decrease in prepaid income taxes           (74,878)         71,882       (71,882)
                  Decrease in prepaid expenses                           (2,635)             99           989
                  Increase (decrease) in trade payables                   3,938           3,434       (15,082)
                  Increase (decrease) in other liabilities             (151,282)        250,221       (82,734)
                                                                   ------------    ------------   -----------
                        Net cash provided by operating activities     1,582,713       1,563,108       157,145
                                                                   ------------    ------------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES
        Proceeds from rights of way                                         500          43,846            --
        Proceeds from sale of timber and land                            54,917         123,142            --
        Available-for-sale securities:
                Purchases                                              (961,489)             --            --
                Sales                                                        --              --       208,000
        Purchase of land, property and equipment                        (22,087)        (10,149)     (625,548)
                                                                   ------------    ------------   -----------
                        Net cash provided by (used in) investing
                          activities                                   (928,159)        156,839      (417,548)
                                                                   ------------    ------------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES
        Proceeds from long-term borrowings                                   --              --       450,000
        Principal payments on long-term borrowing                            --      (1,187,064)      (62,936)
        Dividends paid, net of refunds                                 (394,440)       (154,635)     (179,744)
        Payments to acquire treasury stock                              (93,872)        (19,604)      (55,650)
                                                                   ------------    ------------   -----------
                        Net cash provided by (used in) financing
                          activities                                   (488,312)     (1,361,303)      151,670
                                                                   ------------    ------------   -----------
                        Net increase (decrease) in cash and
                          cash equivalents                              166,242        (358,644)     (108,733)

Cash and cash equivalents:
        Beginning                                                       471,821         113,177       221,910
                                                                   ------------     -----------   -----------
        Ending                                                     $    638,063     $   471,821   $   113,177
                                                                   ============     ===========   ===========

                                                (continued on next page)

                                      14


                     CALCASIEU REAL ESTATE & OIL CO., INC.

                           STATEMENTS OF CASH FLOWS
                 Years Ended December 31, 2000, 1999 and 1998
                                  (Continued)



                                                         2000        1999        1998
                                                     -----------  ----------  -----------
                                                                     
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
  INFORMATION
  Cash payments for:
    Interest                                         $        --  $   53,506  $    66,573
    Income taxes                                         932,752     509,458      275,686


SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING
  AND FINANCING ACTIVITIES
  Net change in unrealized and realized
     gains on available-for-sale securities               12,362       8,202       (3,480)


See Notes to Financial Statements.

                                       15


                     CALCASIEU REAL ESTATE & OIL CO., INC.

                         NOTES TO FINANCIAL STATEMENTS




Note 1.   Nature of Business and Significant Accounting Policies


          Nature of business:

               The Company's business is the ownership and preservation of the
               assets acquired at the Company's organization and subsequent
               thereto. The primary activities have consisted of leasing its
               properties and collecting rents and royalties derived therefrom.


               In February, 1990, the Company acquired a 12.5% interest in
               34,189 acres of land in Southwest Louisiana. Among other uses, a
               portion of the land is devoted to agricultural purposes. In
               November, 1998, the Company purchased an additional 4.2% interest
               in this land, bringing its total interest to 16.7%.


               In April, 1992, the Company purchased a 100% interest in the
               surface rights and a 50% interest in the mineral rights to 952
               acres, consisting of mainly timber land.


               In October, 1997, the Company purchased approximately 3,496 acres
               of agricultural property.



          Significant accounting policies:


             Cash and cash equivalents:

               For purposes of the statement of cash flows, cash equivalents
               include time deposits, certificates of deposit, and all highly
               liquid debt instruments with original maturities of three months
               or less.


             Inventory:

               Inventory consists of harvested crops valued at estimated selling
               price at the date of the balance sheet.

                                       16


                         NOTES TO FINANCIAL STATEMENTS




     Pervasiveness of estimates:

          The preparation of financial statements in conformity with generally
          accepted accounting principles requires management to make estimates
          and assumptions that affect the reported amounts of assets and
          liabilities and disclosure of contingent assets and liabilities at the
          date of the financial statements and the reported amounts of revenues
          and expenses during the reporting period. Actual results could differ
          from those estimates.


     Agricultural revenue:

          Most agricultural income is derived under U.S. Government subsidy
          programs. Under these programs, loans are made against crops as
          harvested. However, delivery of the crops fulfills any further
          obligation under the loan agreement, and thus revenues are recognized
          as the harvested crops are delivered. Differences in the price at
          ultimate sale of the products could result from quantity, grade, and
          price, and additional revenues are derived at that time.


     Investment securities:

          The Company complies with the provisions of Financial Accounting
          Standards Board Statement No. 115, Accounting for Certain Investments
          in Debt and Equity Securities. Under the provisions of this statement,
          management must make a determination at the time of acquisition
          whether certain investments in debt and equity securities are to be
          held as investments to maturity, held as available for sale, or held
          for trading. Management, under a policy adopted by the board of
          directors of the Company, made a determination that all debt and
          equity securities owned at that date and subject to the provisions of
          the statement would be classified as held available-for-sale.

          Under the accounting policies provided for investments classified as
          held available-for-sale, all such debt securities and equity
          securities that have readily determinable fair value shall be measured
          at fair value in the balance sheet. Unrealized holding gains and
          losses for available-for-sale securities shall be excluded from
          earnings and reported as a net amount (net of income taxes) as a
          separate component of retained earnings until realized. Realized gains
          and losses and declines in value judged to be other than temporary on
          available-for-sale securities are included in income. The cost of
          securities sold is based on the specific identification method.
          Interest on debt securities is recognized in income as earned, and
          dividends on marketable equity securities are recognized in income
          when declared.

                                       17


                         NOTES TO FINANCIAL STATEMENTS



     Property and equipment:

          Property and equipment is stated at cost. Major additions are
          capitalized; maintenance and repairs are charged to income currently.
          Depreciation is computed on the straight-line and accelerated methods
          over the estimated useful lives of the assets.


     Successful efforts accounting method:

          The Company uses the successful efforts method of accounting for its
          oil and gas operations. Under the successful efforts method, the costs
          of acquiring mineral interest, drilling and equipping successful
          exploratory wells, and all development wells and related facilities
          are capitalized. All other exploration costs, including geological and
          geophysical costs, lease rentals and the cost of drilling unsuccessful
          exploratory wells are charged to expense. Due to the Company's small
          percentage ownership (in relation to the total) of oil and gas
          properties, reserve information is not available to the Company for
          mineral interests acquired. Depletion of these interests is computed
          on the straight-line and accelerated methods over an estimated life of
          five to seven years. Acquisition costs of proved mineral interests for
          which reserve information is available are depleted using the unit-of-
          production method based on production and estimated proved reserves.
          Related tangible and intangible costs are depreciated and amortized
          using the unit-of-production method based on production and estimated
          proved developed reserves.


     Earnings per share:

          Earnings per share is based on the weighted average number of common
          shares outstanding during the years.


     Income taxes:

          The Company complies with the provisions of FASB Statement of
          Financial Accounting Standards 109, Accounting for Income Taxes
          relative to the reporting of income taxes. This statement requires an
          asset and liability approach for financial accounting and reporting
          for income taxes. The objectives are to recognize the amount of taxes
          payable or refundable for the current year, and to recognize deferred
          tax liabilities and assets for the future tax consequences of events
          that have been recognized in the Company's financial statements or tax
          returns. The elements with different bases for financial and tax
          purposes are property and equipment, investments, accounts receivable,
          inventory and accounts payable.

                                       18


                         NOTES TO FINANCIAL STATEMENTS




               The basic principles to be applied in accounting for income taxes
               at the date of the financial statements are:

               1.   A current tax liability or asset is recognized for the
                    estimated taxes payable or refundable on tax returns for the
                    current year.

               2.   A deferred tax liability or asset is recognized for the
                    estimated future tax effects attributable to temporary
                    differences and carryforwards.

               3.   The measurement of current and deferred tax liabilities and
                    assets is based on provisions of the enacted tax law; the
                    effects of future changes in tax laws or rates are not
                    anticipated.

               4.   The measurement of deferred tax assets is reduced, if
                    considered necessary, by the amount of any tax benefits
                    that, based on available evidence, are not expected to be
                    realized.


          Comprehensive income:

               Effective January 1, 1998, the Company adopted Statement of
               Financial Accounting Standards No. 130, "Reporting Comprehensive
               Income". This statement establishes standards for reporting and
               displaying comprehensive income and its components in the
               financial statements. Total comprehensive income and the
               components of accumulated other comprehensive income are
               presented in the Statements of Changes in Stockholders' Equity.
               Prior periods have been reclassified to conform to the
               requirements of SFAS 130. SFAS 130 had no impact on the Company's
               net income or stockholders' equity.


          Reclassifications:

               Certain prior year balances have been reclassified in order to
               conform to current year presentation.


Note 2.   Securities Available-for-Sale

          Debt and equity securities have been classified in the balance sheet
          according to management's intent in the current and noncurrent asset
          sections under the headings securities available-for-sale. The
          carrying amount of securities and their approximate fair values at
          December 31, 2000 and 1999 follow:

                                       19


                         NOTES TO FINANCIAL STATEMENTS




                                                     Gross          Gross
                                                   Amortized     Unrealized     Unrealized
                                                      Cost          Gains         Losses       Fair Value
                                                 ------------   ------------   ------------   ------------
                                                                                  
                December 31, 2000
          Available-for-sale securities:
            Equity securities                    $     56,123   $     18,706   $         --   $     74,829
            Preferred equity securities               279,257         15,619             --        294,876
            U.S. government securities                682,232          6,422                       688,654
                                                 ------------   ------------   ------------   ------------

                                                  $ 1,017,612   $     40,747   $         --   $  1,058,359
                                                 ============   ============   ============   ============

                December 31, 1999
          Available-for-sale securities:
            Equity securities                    $     56,123   $     20,144   $         --   $     76,267
            U.S. government securities                     --             --             --             --
                                                 ------------   ------------   ------------   ------------
                                                 $     56,123   $     20,144   $         --   $     76,267
                                                 ============   ============   ============   ============


          Gross realized gains and gross realized losses on sales of available-
          for-sale securities during 1998 are presented below. There were no
          gross realized gains and gross realized losses on sales of available-
          for-sale securities during 1999 and 2000.

                                                      Gains         Losses
                                                    ---------     ----------
                     1998
           Gross realized gains:
             U.S. government and agency securities  $      --     $       --
             Municipal securities                      13,172             --
             Equity securities                             --             --
                                                    ---------     ----------

                                                    $  13,172     $       --
                                                    =========     ==========

Note 3.   Oil and Gas Properties

          Results of operations for oil and gas producing activities at December
          31, 2000, 1999 and 1998 is as follows:

                                       20


                         NOTES TO FINANCIAL STATEMENTS




                                                2000             1999          1998
                                             -----------    -----------    ----------
                                                                  
     Gross revenues:
        Royalty interests                    $ 1,555,838    $ 2,017,723    $  563,033
        Working interests                         63,851         24,095        19,115
                                             -----------    -----------    ----------
                                               1,619,689      2,041,818       582,148
     Less:
        Production costs                          78,176         84,605        50,511
        Depreciation, depletion and
          amortization                                --            318           580
                                             -----------    -----------    ----------
          Results before income tax
            expenses                           1,541,513      1,956,895       531,057

     Income tax expenses                         509,419        630,682       164,487
                                             -----------    -----------    ----------
          Results of operations from
            producing activities
            (excluding corporate
            overhead)                        $ 1,032,094    $ 1,326,213    $  366,570
                                             ===========    ===========    ==========


  Costs incurred in oil and gas activities:

     The major costs incurred in connection with the Company's oil and gas
     operations (which are conducted entirely within the United States) at
     December 31, 2000, 1999 and 1998 are as follows:

                                                 2000       1999      1998
                                               --------   --------  --------
          Acquisition costs-working and
            royalty interests                  $     --   $     --  $     --
                                               ========   ========  ========

          Exploration costs                    $     --   $     --  $     --
                                               ========   ========  ========

          Development costs                    $     --   $    932  $  3,741
                                               ========   ========  ========

  Reserve quantities (unaudited):

     Reserve information relating to estimated quantities of the Company's
     interest in proved reserves of natural gas and crude (including condensate
     and natural gas liquids) is not available. Such reserves are located
     entirely within the United States. A schedule indicating such reserve
     quantities is, therefore, not presented.

                                       21


                         NOTES TO FINANCIAL STATEMENTS


          The wells remain in production at December 31, 2000, including royalty
          interests and working interests obtained through back-in provisions of
          royalty agreements. Production from such royalty interests and working
          interests comprises 100% of the Company's oil and gas revenues in
          2000, 1999 and 1998.

          Actual production has exceeded original estimates of reserves, and
          remaining reserves have not been revised. Therefore, the Company is
          not able to complete the computations of discounted future cash flows
          and reconciliation thereof.


Note 4.   Income Taxes

          The Company files federal income tax returns on a calendar year basis.

          The net deferred tax liability in the accompanying balance sheet
          includes the following components at December 31, 2000 and 1999:



                                                              2000      1999
                                                            --------  --------
                                                                
               Deferred tax assets                          $     --  $  3,203
               Valuation allowance                                          --
               Deferred tax liabilities                      (14,316)  (15,318)
               Deferred tax liabilities on unrealized
                  appreciation of securities available
                  for sale                                   (16,298)   (8,058)
                                                            --------  --------

                    Net deferred tax liability              $(30,614) $(20,173)
                                                            ========  ========


          A reconciliation between income taxes, computed by applying statutory
          tax rates to income before income taxes and income taxes provided at
          December 31, 2000, 1999 and 1998 is as follows:



                                                  2000        1999       1998
                                               ---------   ---------  ---------
                                                             
               Tax at statutory rates          $ 729,239   $ 775,137  $ 198,962

               Tax effect of the following:
                 Statutory depletion             (82,145)    (99,490)   (27,084)
                 Dividend exclusion               (2,714)       (514)      (428)
                 State income tax                 60,375      61,094     13,126
                 Investment tax credit                --        (167)        --
                 Other                             4,037      (1,306)    (3,325)
                                               ---------   ---------  ---------

                                               $ 708,792   $ 734,754  $ 181,251
                                               =========   =========  =========


                                       22


                         NOTES TO FINANCIAL STATEMENTS


          Deferred income taxes result from timing differences in the
          recognition of revenue and expenses for tax and financial statement
          purposes. The effect of these timing differences at December 31, 2000
          and 1999 is as follows:



                                                                    2000           1999
                                                                 ----------     ----------
                                                                          
               Conversion of investment from tax cash basis
                 to accrual basis for financial
                 reporting                                       $  (14,304)    $  (14,344)

               Excess of depreciation and depletion
                 expensed for tax purposes (under)
                 amount expensed for financial
                 statement purposes                                     (12)         2,229

               Unrealized gain on marketable securities             (16,298)        (8,058)
                                                                 ----------     ----------

                                                                 $  (30,614)    $  (20,173)
                                                                 ==========     ==========


Note 5.   Line of Credit

          As of December 31, 2000, the Company had available an unsecured line
          of credit in the amount of $750,000. The balance on this line of
          credit was $-0- at December 31, 2000.


Note 6.   Company Operations

          Effective January 1, 1998, the Company adopted the Financial
          Accounting Standards Board Statement No. 131, "Disclosures About
          Segments of an Enterprise and Related Information". This statement
          replaces Statement No. 14, "Financial Reporting for Segments of a
          Business Enterprise", and establishes new standards for defining the
          Company's segments and disclosing information about them. It requires
          that the segments be based on the internal reporting of the Company's
          operations.


          The Company's operations are classified into three principal operating
          segments which are all located in the United States: oil and gas
          properties, agricultural properties, and timber properties. The
          Company's reportable business segments are strategic business units
          that offer income from different products. They are managed separately
          due to the unique aspects of each area.

                                       23


                         NOTES TO FINANCIAL STATEMENTS




          Following is a summary of segmented information for 2000, 1999 and
          1998:



                                                       2000            1999            1998
                                                   ------------   -------------   -------------
                                                                         
     REVENUES
        Oil and gas properties                     $  1,772,148   $   2,102,773   $     672,497
        Agricultural properties                         178,897         197,719         127,832
        Timber properties                               460,963         308,411          64,178
        All other segments                               85,110          37,588          32,520
                                                   ------------   -------------   -------------

                                                   $  2,497,118   $   2,646,491   $     897,027
                                                   ============   =============   =============

     COSTS AND EXPENSES
        Oil and gas properties                     $     78,176   $      84,923   $      51,091
        Agricultural properties                          15,126          16,667          13,509
        Timber properties                                93,962          61,104          29,723
        All other segments                                1,362             932           1,264
                                                   ------------   -------------   -------------

                                                   $    188,626   $     163,626   $      95,587
                                                   ============   =============   =============

     INCOME FROM OPERATIONS
        Oil and gas properties                     $  1,693,972   $   2,017,850   $     621,406
        Agricultural properties                         163,771         181,052         114,323
        Timber properties                               367,000         247,307          34,455
        All other segments                               83,749          36,656          31,256
                                                   ------------   -------------   -------------
                                                      2,308,492       2,482,865         801,440

     OTHER INCOME (EXPENSE)                            (163,671)       (203,051)       (216,258)
                                                   ------------   -------------   -------------

     INCOME BEFORE INCOME TAXES                    $  2,144,821   $   2,279,814   $     585,182
                                                   ============   =============   =============

     IDENTIFIABLE ASSETS
        Oil and gas properties                     $    683,952   $     980,179   $     694,203
        Agricultural properties                       2,522,280       2,530,002       2,531,025
        Timber properties                               964,852       1,067,912         891,510
        All other segments                               90,024          85,685          85,685
                                                   ------------   -------------   -------------
                                                      4,261,108       4,663,778       4,202,423

     GENERAL AND CORPORATE ASSETS                     1,699,731         548,762         556,904
                                                   ------------   -------------   -------------

     TOTAL ASSETS                                  $  5,960,839   $   5,212,540   $   4,759,327
                                                   ============   =============   =============


                                       24


                         NOTES TO FINANCIAL STATEMENTS




                                                       2000            1999            1998
                                                   ------------   -------------   -------------
                                                                         
     CAPITAL EXPENDITURES
        Oil and gas properties                     $        633   $       2,947   $      96,320
        Agricultural properties                          10,479              --         222,789
        Timber properties                                19,294           3,453         220,754
        All other segments                                5,443           3,749          85,685
                                                   ------------   -------------   -------------

                                                   $     35,849   $      10,149   $     625,548
                                                   ============   =============   =============

     DEPRECIATION, DEPLETION AND
        AMORTIZATION
        Oil and gas properties                     $         --   $         318   $         580
        Agricultural properties                           4,525           3,781           2,574
        Timber properties                                32,604          15,453          12,399
        All other segments                                2,153             932           1,264
                                                   ------------   -------------   -------------

                                                   $     39,282   $      20,484   $      16,817
                                                   ============   =============   =============


     There are no intersegment sales reported in the accompanying income
     statements. The accounting policies of the segments are the same as those
     described in the summary of significant accounting policies. The Company
     evaluates performance based on profit or loss from operations before income
     taxes excluding nonrecurring gains and losses on securities held available
     for sale. Income before income tax represents net sales less operating
     expenses and other income and expenses of a general corporate nature.
     Identifiable assets by segment are those assets that are used in the
     Company's operations within that industry. General corporate assets consist
     principally of cash and cash items, accounts receivable, and marketable
     equity and debt securities.


     The following summarizes major customer information at December 31, 2000,
     1999 and 1998 from oil and gas revenues:



                                                        Sales to Purchaser as a
                                                      Percentage of Total Revenues
                                                  ------------------------------------
                    Purchaser                         2000        1999        1998
                    ---------                     -----------  ----------  -----------
                                                                  
                Riceland Petroleum Company                  4%          2%          10%
                Mitchell Energy                             6%         12%          34%
                Neumin Production                          65%         78%          34%


                                       25


                         NOTES TO FINANCIAL STATEMENTS




Note 7. Related Party Transactions

        As of April 1, 1999, the President of the Company is serving as Chairman
        of the advisory board of Bank One, Southwest Louisiana (the Bank).
        Formerly, he was the President of the Bank. At December 31, 2000 and
        1999, the Company had $638,063 and $471,821, respectively, deposited in
        money-market and noninterest bearing checking accounts with the Bank.


        During 2000, 1999 and 1998, some board members entered into leases with
        the Company for water fowl hunting on property acquired during 1998.
        Lease income from these leases amounted to $3,200 for the year 2000 and
        $4,800 for each of the years ended December 31, 1999 and 1998.


        In 1990, the Company purchased interests in properties managed by Walker
        Louisiana Properties (WLP), such properties being subject to a
        management agreement described at Note 9. In 1998, the Company purchased
        an additional interest in this property.


Note 8. Supplementary Income Statement Information

        Taxes, other than income taxes, of $109,569, $117,129 and $65,154, were
        charged to expense during 2000, 1999 and 1998, respectively.


Note 9. Management Agreement

        During 1990, the Company purchased an undivided interest in numerous
        parcels of land and other properties as described at Note 7. The
        Company's interest, along with the interests of other co-owners, is
        managed by an entity under a management agreement whereby costs are
        shared based on the percent of ownership.

                                      26


                         NOTES TO FINANCIAL STATEMENTS




Note 10.  Operating Leases

          The Company leases agricultural land to a third party. This agreement,
          with an original expiration date of September 30, 2002, was extended
          during year 2000 to September 30, 2004. The annual lease rental is
          $40,000. The lease requires payment of normal maintenance and
          insurance. The lease also requires the lessee to construct specific
          improvements to the property at an expenditure of at least $60,000 as
          additional consideration during the original term of the contract. In
          the event the lessee fails to spend $60,000 on the above mentioned
          improvements prior to September 30, 2002, the amounts unspent will be
          due and payable to the Company on September 30, 2002. As a condition
          of extending the lease contract for an additional two year period, the
          lessee is required to spend $40,000 each year for additional
          improvements to the properties, in addition to the annual lease
          payments.


          Total future minimum rental income under operating leases as of
          December 31, 2000 for the next five years is as follows:

               Years Ending December 31,
               -------------------------
                         2001                      $   40,000
                         2002                          40,000
                         2003                          40,000
                         2004                          40,000
                         2005                               -


Note 11.  Concentration of Credit Risk

          The Company maintains its cash balances in one financial institution.
          The amount on deposit in the financial institution is insured by the
          Federal Deposit Insurance Corporation up to $100,000.


Note 12.  Disclosures About Fair Value of Financial Instruments

          The following methods and assumptions were used to estimate the fair
          value of each class of financial instruments for which it was
          practical to estimate that value:

               Cash and cash equivalents:

                 For these short-term instruments, the carrying amount is a
                 reasonable estimate of fair value.

                                       27


                         NOTES TO FINANCIAL STATEMENTS


          Securities available-for-sale:

            Debt and equity securities were valued at fair value, which equals
            quoted market price.


      The estimated fair value of the Company's financial instruments at
      December 31, 2000 and 1999 are as follows. Amounts are presented in
      thousands.

                                         2000              1999
                                   ---------------------------------
                                   Carrying   Fair   Carrying   Fair
      Financial Assets              Value    Value    Value    Value
                                   -------- ------   -------- ------

   Cash and cash equivalents       $  638   $  638   $  472   $  472
   Securities available for sale    1,058    1,058       76       76
                                   -------- ------   -------- ------

                                   $1,696   $1,696   $  548   $  548
                                   ======== ======   ======== ======

Note 13.  Commitments and Contingencies

          The Company is a co-defendant in a lawsuit filed by previous owners of
          property that is now partially owned by the Company. In this suit, the
          Plaintiffs assert that the sale of a strip of property in 1914 created
          two servitudes, one of which, the co-defendants claim ownership,
          expired by liberative prescription in 1940. The Company has indicated
          that it will defend the suit vigorously, and it is anticipated that a
          motion for summary judgment in favor of the defendants will be filed
          in the near future.

                                       28


                     CALCASIEU REAL ESTATE & OIL CO., INC.

                         PROPERTY, PLANT AND EQUIPMENT
                 Years Ended December 31, 2000, 1999 and 1998



                                          Balance,                  Adjustments    Balance,
                                         Beginning                      and         End of
           2000                          of Period     Additions    Retirements     Period
           ----                          ----------   ----------    -----------   ----------
                                                                      
Oil and gas properties-proved            $  458,185   $       --    $     1,435   $  456,751

Other property:
  Buildings and equipment                    90,885       15,922         17,031       89,776
  Timber                                    715,064       19,295         60,933      673,426
  Land                                    3,615,791          632            522    3,615,900
                                         ----------   ----------    -----------   ----------
                                         $4,879,925   $   35,849    $    79,921   $4,835,853
                                         ==========   ==========    ===========   ==========

           1999
           ----
Oil and gas properties-proved            $  444,236   $    2,947    $   (11,002)  $  458,185

Other property:
  Buildings and equipment                    87,136        3,749             --       90,885
  Timber                                    803,086        3,453         91,475      715,064
  Land                                    3,660,478           --         44,687    3,615,791
                                         ----------   ----------    -----------   ----------
                                         $4,994,936   $   10,149    $   125,160   $4,879,925
                                         ==========   ==========    ===========   ==========

           1998
           ----
Oil and gas properties-proved            $  377,666   $   80,521    $    13,951   $  444,236

Other property:
  Buildings and equipment                    90,941        9,251         13,056       87,136
  Timber                                    575,785      227,301             --      803,086
  Land                                    3,352,003      308,475             --    3,660,478
                                         ----------   ----------    -----------   ----------
                                         $4,396,395   $  625,548    $    27,007   $4,994,936
                                         ==========   ==========    ===========   ==========


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                     CALCASIEU REAL ESTATE & OIL CO., INC.

             ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION
                 Years Ended December 31, 2000, 1999 and 1998



                                       Balance,                  Adjustments   Balance,
                                       Beginning                     and        End of
          2000                         of Period    Additions    Retirements    Period
          ----                         ---------    ---------    -----------  --------
                                                                  
Oil and gas properties-proved          $  377,039   $    2,496    $     --    $ 379,535
Other property:
  Buildings and equipment                  73,468        4,525       8,104       69,889
  Timber                                  228,876       32,261       2,169      258,968
                                       ----------   ----------    --------    ---------
                                       $  679,383   $   39,282    $ 10,273    $ 708,392
                                       ==========   ==========    ========    =========

          1999
          ----
Oil and gas properties-proved          $  362,770   $    3,050    $(11,219)   $ 377,039
Other property:
  Buildings and equipment                  71,487        1,981          --       73,468
  Timber                                  213,423       15,453          --      228,876
                                       ----------   ----------    --------    ---------
                                       $  647,680   $   20,484    $(11,219)   $ 679,383
                                       ==========   ==========    ========    =========

          1998
          ----

Oil and gas properties-proved          $  376,141   $      580    $ 13,951    $ 362,770
Other property:
  Buildings and equipment                  80,706        3,837      13,056       71,487
  Timber                                  201,023       12,400          --      213,423
                                       ----------   ----------    --------    ---------
                                       $  657,870   $   16,817    $ 27,007    $ 647,680
                                       ==========   ==========    ========    =========


                                      30