MEMORANDUM OF UNDERSTANDING
                                  July 4, 2005

This  confidential  Memorandum of  Understanding  ("MOU") is entered into by and
between  USProduction  &  Exploration,  LLC  ("USPX"),  whose  address  is 20333
Southwest  Freeway,  #106,  Sugar Land,  Texas  77479,  and  Universal  Property
Development and Acquisition  Corp ("UPDA"),  whose address is 14255 U.S. Highway
1, Suite 2180, Juno Beach,  Florida 33408, and Triple Crown  Consulting  ("TCC")
whose  address  is 1946 N. Oak Haven  Circle,  Miami  Beach,  FL 33179.  For the
purpose  of this  MOU and  ease of  reference  all  aforementioned  parties  are
hereinafter referred to collectively as "Parties" and individually as "Party."

                                    RECITALS

      WHEREAS,  USPX is actively engaged directly and through  affiliates in the
Energy related Project Business  Development,  and their Ownership,  Management,
Engineering,  Procurement,  Construction,  Installation ("EPC"),  Operation, and
Plant and  facility  Maintenance  ("O&M").  Key to the  success  of USPX and its
affiliates is the capabilities, experiences, qualifications, market and industry
relationships  of its  shareholders/management  team  at  corporate  level,  and
information of project specific subsidiaries and joint venture partnerships, and
its key industry Strategic Alliance Partners.

      WHEREAS,  TCC is engaged in the Merchant & Investment Banking,  Commercial
Finance Brokerage Services, as well as business development services.

      WHEREAS,  UPDA is a public company engaged in the Real Estate Development,
with  the  ability  to fund  business  development  through  formation  of joint
ventures  or  strategic  alliances  for its  own  account  as  well  as  serving
independent clients.

      NOW, THEREFORE, USPX, UPDA, and TCC are desirous to enter into this MOU in
joining forces as strategic alliance partners through the establishment of a "C"
corporation.  The new corporation will be incorporated in the State of Nevada of
a contemplated new strategic  alliance between the parties whereas USPX will own
70% (Seventy percent), UPDA will own 25% (Twenty five percent), and TCC will own
5% (Five Percent) of the stock in the said new corporation.

                                   AGREEMENTS

The  parties  must  agree  that  foundation  of this MOU and the  impending  new
corporation is based on the following principles:

      A.    The purpose of a new  corporation  enables  the Parties  together to
            explore  the  business  development  and  funding  opportunities  in
            various  endeavors  while  each  party  retaining  its own  separate
            identity, operation, ownership, organization, and relationship.



      B.    The  new  corporation   shall  not  preclude  each  party  on  their
            own/separately  to  pursue  other  business   opportunities,   joint
            ventures,  and strategic alliances with other parties so long as the
            confidentiality  obligations  undertaken  hereunder are not breached
            thereby.

      C.    Parties   agree  that  the   formation,   identity,   organizational
            structure,  and by-laws of the said new corporation shall be decided
            on a  separate  accord by and  between  the  Parties.  However,  the
            parties have agreed to form a new corporation domiciled in the State
            of Nevada, and the name is Canyon Creek Oil and Gas, Inc.

      D.    Each  party  has a right  to  assign  his  respective  stock  in new
            corporation to other  entities that the party owns or controls.  Any
            reassignment  or sale of  stock  in the new  corporation  should  be
            allowed as long as the same party owns or  controls  the new entity.
            Any  reassignment or sale of the new corporation  stock by an entity
            that the said party  does not own or control  should be decided on a
            consensus by all stockholders of the new corporation.

      E.    ---------------Intentionally left blank ----------------

      F.    The parties desire to exchange  certain  proprietary or confidential
            information  for  the  purpose  of  exploring   potential   business
            development and funding opportunities.

      G.    The parties are willing to provide such information for such purpose
            in accordance with the terms hereof;

      H.    UPDA agrees to provide $500,000 (Five Hundred  Thousand  Dollars) in
            funding  to the new  corporation,  at the  rate of  $300,000  (Three
            Hundred  Thousand  Dollars)  within 30 days of execution  hereof and
            $200,000 (Two Hundred Thousand Dollars) ninety days thereafter. USPX
            agrees to utilize the funds provided by UPDA for the sole purpose of
            rejuvenation  and   reestablishing   the  oil  and  gas  production,
            including but not limited to,  modernizing  or  re-habilitating  the
            existing  infrastructure,  redevelopment  or restoration of existing
            active or  inactive  wells,  and  recompletion  to zones of interest
            capable of producing in  commercial  quantities.  The funds shall be
            utilized in normal  course of events,  including but not limited to,
            construction  of roads,  laying  flow-lines,  installing  electrical
            lines and panels,  installing  electric motors to run pumping units,
            and  installation  of  compressors,  delivery  and set-up of pumping
            units,   installing  rods  or  tubing,   replacing  or  refurbishing
            down-hole  pumps,  acquiring  regulatory  permits to  perform  work,
            insurance, field supervision, general administration,  and overhead.
            All  work  performed  by  USPX  shall  be done  in  accordance  with
            acceptable  industry  standards  and the  proposed  expenditures  as
            outlined  on Exhibit  "A" as  attached  hereto  and  titled  "Use of
            Funds".



      I.    USPX agrees to assign all Leases ("Subject  Leases") currently owned
            by USPX  and its  owners/members  to new  corporation  for the  sole
            benefit of the new corporation;  and USPX will secure a legal at its
            sole cost and expense to insure that the assignment is legally valid
            and may not be contested,  such leases and  assignment as Exhibit "B
            is  attached  hereto  and  titled  "Assignment,  Bill  of  Sale  and
            Conveyance."

      J.    TCC will work with all parties to facilitate funding needs.

      K.    USPX  will act a  managers  and  operators  of the new  corporation.
            Further  description  of  the  Management   Agreement  or  Operating
            Agreement  as Exhibit "C" is attached  hereto and titled  Management
            Agreement.

      L.    The Parties  hereby  agree a three member  individual  board will be
            elected to oversee the new corporation.  One director will be chosen
            by UPDA; the remaining two will be chosen by USPX.

      M.    The Parties hereby agree that all revenues of new  corporation  will
            be booked to the parent company (UPDA) and a distribution  mechanism
            will be put in  place  to  insure  that all  parties  receive  their
            proportionate fair share of the profits of the new corporation.  All
            revenues or oil and gas  proceeds  from the Subject  Leases shall be
            first  deposited  into the new  corporation  account  and the  lease
            operating  expenses  shall be deducted and paid prior to any profits
            being allocated to the Parties.

      N.    ---------------Intentionally left blank ----------------

      O.    The  parties  hereby  agree  that  UPDA will be  entitled  to file a
            mortgage against the leases herein referenced to secure  performance
            of the actions  contemplated  by this MOU.  UPDA shall  release said
            mortgages upon the  commencement  or completion of all of the events
            as set forth in Exhibit A, Use of Funds,  and shall be  entitled  to
            foreclose said mortgages,  at its sole  discretion,  upon failure to
            commence  or complete  performance  within the time frames set forth
            therein.

                            CONFIDENTIAL INFORMATION

1.    Definitions.

      a.  "Confidential  Information" shall mean all confidential or proprietary
      written,  recorded,  electronic  or oral  information  or data  (including
      without limitation  research,  developmental,  engineering  manufacturing,
      technical,  marketing,  sales, financial,  operating,  performance,  cost,
      business  and  process  information  or  data,   know-how,   and  computer
      programming and other software and software  techniques) provided (whether
      such confidentiality or proprietary status is indicated orally, or whether
      or not the specific words  "confidential"  or "proprietary" are used) to a
      Party(s) (the  "Receiving  Party(s)") by the other Party (the  "Disclosing
      Party(s)")  in the  course of the  exchange  of such  information  or data
      between the  Parties.  The  Confidential  Information  shall also  without
      limitation  include specific  business  transaction  opportunity  specific
      funding, credit enhancement,  contacts, buyers, sellers, investors, and or
      joint venture partners ("Sources").



      b. Each Party shall include any of the Party's subsidiaries or affiliates.

      c. "Person" shall be broadly  interpreted to include,  without limitation,
      any corporation, company, partnership, other identity or individual.

      d.  "Representatives"  shall  mean,  as  to  any  Person,  its  directors,
      officers,  employees, agents and advisors (including,  without limitation,
      financial advisors, attorneys and accountants).

2.    Confidentiality   and  Non-Use.  In  any  consideration  of  each  Party's
      providing Confidential Information, the Parties agree as follows:

      e. The Receiving  Party(s) shall hold confidential and not disclose to any
      Person  without  prior written  consent of the  Disclosing  Party(s),  all
      Confidential   Information   and  any   information   about  the  Proposed
      Transaction,  or the  terms or  conditions  or any  other  facts  relating
      thereto,  including,  without  limitation,  the fact that  discussions are
      taking place with respect thereto or the status thereof,  or the fact that
      Confidential Information has been made available to the Receiving Party(s)
      or its Representatives;  provided, however that the Receiving Party(s) may
      disclose such  Confidential  Information  to its  Representatives  who are
      actively  and directly  participating  in its  evaluation  of the Proposed
      transaction or otherwise need to know the Confidential Information for the
      purpose of evaluating the Proposed Transactions;

      f. The Receiving  Party(s) shall cause all its  Representatives to observe
      the terms of this MOU and shall be responsible for any breach of the terms
      of this MOU by it or its Representatives; and

      g. The  Receiving  Party(s)  shall  return  or  destroy  all  Confidential
      Information  (including all copies thereof) within 30 days of receipt of a
      written request therefore by the Disclosing Party(s).

3.    In addition to the forgoing,  each of the Receiving  Party(s) will not use
      the Confidential Information for any purpose other than in connection with
      the Proposed Transaction between the Parties.



4.    Exceptions to the Confidentiality and NON-Use Obligations. The obligations
      imposed by Section 2 hereof shall not apply,  or shall cease to apply,  to
      any Confidential Information if or when, but only to the extent that, such
      Confidential Information:

      h. Was  known  to the  Receiving  Party(s)  prior  to the  receipt  of the
      Confidential Information hereunder; or

      i.  Was,  or  becomes,   through  no  breach  of  the  Receiving  Party(s)
      obligations hereunder, known to the public; or

      j. Becomes  known to the  Receiving  Party(s)  from sources other than the
      Disclosing  Party(s) under  circumstances  not involving any breach of any
      confidentiality obligation; or

      k. Is independently  developed by the Receiving Party(s),  as evidenced by
      the written records thereof.

It  shall  not be a  breach  of the  confidentiality  obligations  hereof  for a
Receiving Party(s) to disclose  Confidential  Information where, but only to the
extent that, such disclosure is required by law or applicable legal process, and
or the course of conduct of  ordinary  business of the new  corporation  for the
mutual benefits on a need to know basis.

                            MISCELLANEOUS PROVISIONS

5.    No  Representations   and  Warranties.   Each  of  the  Parties  makes  no
      representations  or  warranties,  express or  implied,  of any kind to the
      other  Party  with  respect  to the  Confidential  Information,  including
      without  limitation  with the  respect  to the  accuracy  or  completeness
      thereof.  Any representations or warranties shall be made, if at all, only
      in definitive written MOU that may be entered into hereafter.

6.    Termination;  Duration of Obligations.  Unless sooner terminated by mutual
      written  MOU of the Parties  hereto or by  integration  into a  definitive
      agreement and creation of the new corporation  contemplated  hereby,  this
      MOU and the obligations hereunder shall terminate five years from the date
      hereof.  Notwithstanding anything to the contrary, in the event UPDA fails
      to make its  obligations  as outlined in the paragraph H above,  then this
      MOU shall terminate unless extended in writing by the Parties.



7.    Entire MOU. This MOU  represents the entire  understanding  and MOU of the
      Parties  and  supersedes  all  prior  communications;   this  MOU  is  the
      understandings between the Parties relating to the subject matter hereof.

8.    Waivers;  Amendments;  Assignment;  Counterparts.  This  MOU  may  not  be
      modified,  amended or waived except by a written  instrument duly executed
      by both  Parties.  No failure or delay by either Party in  exercising  any
      right, power or privilege hereunder shall operate as a waiver thereof, nor
      shall any single or partial exercise thereof preclude any other or further
      exercise  thereof  or  the  exercise  of any  right,  power  or  privilege
      hereunder.  This MOU may not be assigned by either Party without the prior
      written  consent  of the other and shall be  binding  on, and inure to the
      benefit of, the respective  successors of the Parties hereto. This MOU may
      be  signed  in two or more  counterpart  originals,  each of  which  shall
      constitute an original document.

9.    Governing  Law;  Disputes.  This  MOU is  made  subject  to and  shall  be
      construed under the laws of the State of Nevada,  without giving effect to
      its principles or rules regarding conflict laws.

10.   Remedies. Without prejudice to the rights and remedies otherwise available
      to either Party,  each Party shall be entitled to equitable  relief by way
      of  injunction  or  otherwise  if  the  Receiving  Party(s)  or any of its
      Representatives breach or threaten to breach any of the provisions of this
      MOU and the  Receiving  Party(s)  shall not plead in defense  thereto that
      there would be an adequate remedy at law.

IN WITNESS  WHEREOF,  each of the  Parties has caused this MOU to be executed by
their respective,  fully authorized representatives as of the date first written
above.

USProduction & Exploration, LLC


By:
    -----------------------------------------
    Donald W. Orr                   Title

Universal Property Development and Acquisition Corp.


By:
    -----------------------------------------
    Kamal Abdallah                  Title

Triple Crown Consulting


By:
    -----------------------------------------
    Benjamin Kaplan                 Title



                                   EXHIBIT "A"

                      Attached to and made a part hereof to
                      That certain MOU dated June 30, 2005

                                  Use of Funds
                       (See attached Microsoft Excel File)



                                   EXHIBIT "B"

                       Attached to and made a part hereof
                     To that certain MOU dated June 30, 2005

                     ASSIGNMENT, BILL OF SALE AND CONVEYANCE

                                  June 27, 2005

STATE OF TEXAS
                                           KNOWN ALL MEN BY THESE PRESENTS: THAT
COUNTY OF PALO PINTO

WHEREAS, Donald W. Orr, (herein called "Grantor"),  subject to the reservations,
exceptions and agreements noted below, desires to assign and convey an undivided
rights,  title, and interest in and to those certain Oil and Gas Leases, oil and
gas well,  assets and  properties  described on Exhibit  "A",  which is attached
hereto and made a part  hereof for all  purposes,  to  ________________________,
whose  address is  ___________________________,  hereinafter  referred to as the
"Grantee".

NOW,  THEREFORE,  for and in  consideration  of the sum of Ten Dollars and other
good and valuable  consideration the receipt and sufficiency of which are hereby
acknowledged  by Grantors,  and the  assumption  and  covenant and  agreement of
Grantee, Grantor does hereby GRANT, BARGAIN, SELL, CONVEY, ASSIGN, TRANSFER, SET
OVER, and DELIVER unto Grantee the undivided interest in the following described
properties,  rights and interests (the  "Properties")  with an effective date of
June 1, 2005:

            (a) An undivided  __________ of 8/8th of the Grantor's right,  title
      and  interest  of Grantor in and to the oil and gas leases  (the  "Subject
      Leases"),  described  on Exhibit  "A" hereto  (and any  ratifications  and
      amendments thereto,  whether or not the same are described on Exhibit "A",
      and  subject to  landowner's  royalties,  overriding  royalties  and other
      matters); and

            (b) An undivided  ______________ of 8/8th without  limitation of the
      foregoing,  of the other rights, titles and interests (of whatever kind or
      character,  whether legal or equitable,  and whether vested or contingent)
      of Grantor in and to the oil, gas and other  minerals in and under or that
      may be produced  from the lands  described on Exhibit "A" hereto or in the
      Subject Leases or in any other instrument described on Exhibit "A" hereto;
      and

            (c) An undivided __________________ of 8/8th of the right, title and
      interest of Grantor in and to, or otherwise  derived  from,  all presently
      existing and valid oil, gas and/or mineral  unitization,  pooling,  and/or
      communitization  agreements,  declarations,   designations  and/or  orders
      (including, without limitation, those described on Exhibit "A" hereto) and
      in and to the properties covered and the units created thereby (including,
      without limitation, all units formed under orders, rules, regulations,  or
      other  official  acts of an  federal,  state,  or other  authority  having
      jurisdiction,  and voluntary unitization  agreements,  designations and/or
      declarations)  relating to the properties  described in subparagraphs  (a)
      and (b) above;



            (d) An  undivided  ______________  of 8/8th of the right,  title and
      interest of Grantor in and to all presently  existing and valid production
      sales contracts,  operating agreements, and other agreements and contracts
      which relate to any of the properties  described in subparagraphs (a), (b)
      and (c) above; and

            (e) An undivided  ________________  of 8/8th of the right, title and
      interest  of  Grantor  in  and  to  all  materials,  supplies,  machinery,
      equipment,   improvements   and  other  personal   property  and  fixtures
      (including,  but not by way of limitation,  all wells, wellhead equipment,
      pumping  units,  flow-lines,  tanks,  buildings,  compressors,   saltwater
      disposal  facilities,   injection  facilities,   compression   facilities,
      gathering  systems,  and  other  equipment)  used in  connection  with the
      exploration,  development,  operation  or  maintenance  of the  properties
      described  in  subparagraphs  (a),  (b)  and (c)  above  and in and to all
      permits and licenses including,  without limitation, all environmental and
      other governmental permits,  licenses and authorizations),  rights of way,
      easements,  and other rights of surface use and other rights and interests
      used  in  connection  with  the  exploration,  development,  operation  or
      maintenance of the properties  described in subparagraphs (a), (b) and (c)
      above.  THIS SALE OF PERSONAL  PROPERTY AND FIXTURES IS MADE AS IS WITHOUT
      WARRANTY  OF ANY KIND,  EXPRESS OR  IMPLIED,  AND IN  PARTICULAR,  WITHOUT
      WARRANTY AS TO  MERCHANTABILITY  OR AS TO FITNESS OF SUCH  PROPERTY OR ANY
      PART THEREOF FOR ANY PURPOSE OR INTENDED  USE, ALL OF WHICH  WARRANTIES OF
      MERCHANTABILITY,  FITNESS  FOR USE AND  FREEDOM  FROM  APPARENT  OR LATENT
      DEFECTS,  ARISING BY IMPLICATION,  LAW, STATUTE,  REGULATION OR OTHERWISE,
      ARE EXPRESSLY WAIVED BY ASSIGNEE.

TO HAVE AND TO HOLD the  above  described  Properties  unto  Grantee,  Grantee's
heirs,  devisees,  personal  representatives,  successors  and assigns,  without
warranty of any kind, either expressed or implied.

IN WITNESS WHEREOF this Conveyance has been executed on June 27, 2005, effective
as to runs of oil and deliveries of gas as of 7:00 A.M.  Central Time on June 1,
2005.



GRANTOR:

Donald W. Orr


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


STATE OF TEXAS

COUNTY OF _____________

      On  this  ____day  of  __________,   2005,  before  me,  the  undersigned,
authority,  personally came and appeared Donald W. Orr, that he signed the above
and  foregoing  document  as his own  free  act and  deed  and for the  uses and
purposes therein set forth and apparent.


                                             -----------------------------------
                                             NOTARY PUBLIC, State of ___________



                                   Exhibit "A"

I.    OIL, GAS, AND MINERAL LEASES SUBJECT TO THIS AGREEMENT

ARCHER COUNTY, TEXAS

1.    UNIT NAME:         Jones-Ford Unit

      LEASE NUMBER:      TX  6331-000
      LEASE DATE:        4-26-45
      LESSOR:            Walter Ford, et al
      LESSEE:            E. R. Perkins
      RECORDED:          Book 200, Page 161
      DESCRIPTION:  INSOFAR AS SAID LEASE COVERS THE  FOLLOWING  DESCRIBED  LAND
      SITUATED IN ARCHER COUNTY,  TEXAS: 220.5 acres, more or less out of Survey
      19,  Block  1, TC RR Co.  Survey,  Abstract  223,  described  as  follows:
      Beginning at the  Northwest  corner of a 160 acre tract  conveyed to W. I.
      Haston by deed  recorded  in Volume U,  Page 43,  Deed  Records  of Archer
      County,  Texas; thence North 1455.56 foot to North line of said Survey 19,
      corner in road; thence West with North line of said Survey 1538.09 feet to
      Northeast  corner of the 10 acre tract sold to the  church;  thence  South
      1089.92 feet to corner; thence West 330 feet to corner; thence South 707.5
      feet to corner;  thence  west 770 feet to the West line of said Survey 19;
      thence  South 725 feet to Southeast  corner of the  original  Krebs tract;
      thence East 833.3 feet to  Northeast  corner of the R. H. Dearing 112 acre
      tract;  thence South with East line of said Dearing tract 2600 feet to the
      Southeast  corner  thereof in the South line of Section  19;  thence  East
      1805.56 feet;  thence North  passing the  Southwest  corner of said Haston
      tract, in all 3666.67 feet to place of beginning.

2.    UNIT NAME:         Jones-Ford Unit

      LEASE NUMBER:      TX  6332-000
      LEASE DATE:        9-1-45
      LESSOR:            First Evangelical Church
      LESSEE:            E. R. Perkins
      RECORDED:          Book 200, Page 229

      DESCRIPTION:  INSOFAR AS SAID LEASE COVERS THE  FOLLOWING  DESCRIBED  LAND
      SITUATED IN ARCHER COUNTY, TEXAS: 40 acres of land out of Survey 19, Block
      1, H & TC RR Co.  Survey,  Abstract  223  described by metes and bounds as
      follows: Beginning at Northwest corner of said Survey 19; thence East with
      its North line 1100 feet to corner;  thence South  1009.92 feet to corner;
      thence West 330 feet to corner;  thence South 707.5 feet to corner; thence
      West 770 feet to corner in West line of Section 19; thence North with West
      line of Section 19, 1797.4 feet to place of beginning.



3.    UNIT NAME:         Jones-Ford Unit

      LEASE NUMBER:      TX 6331-000
      LEASE DATE:        4-26-45
      LESSOR:            Walter Ford, et al
      LESSEE:            E. R. Perkins
      RECORDED:          Book 200, Page 161

      DESCRIPTION:  INSOFAR AS SAID LEASE COVERS THE  FOLLOWING  DESCRIBED  LAND
      SITUATED IN ARCHER COUNTY, TEXAS: 40 acres of land out of Survey 19; Block
      1, H & TC RR Co., Survey,  Abstract 223,  described by metes and bounds as
      follows: Beginning at Northwest corner of said Survey 19, thence East with
      its North line 1100 feet to corner;  thence South  1089.92 feet to corner;
      thence  West 330 feet to corner;  thence  West 330 feet to corner;  thence
      South 707.5 feet to corner; thence West 770 feet to corner in West line of
      Section  19;  thence  North with West line of Section  19,  1797.4 feet to
      place of beginning.

4.    UNIT NAME:         Jones-Ford Unit

      LEASE NUMBER:      TX  6333-000
      LEASE DATE:        6-20-45
      LESSOR:            O. A. Jones
      LESSEE:            E. R. Perkins
      RECORDED:          Book 200, Page 151
      DESCRIPTION:  INSOFAR AS SAID LEASE COVERS THE  FOLLOWING  DESCRIBED  LAND
      SITUATED IN ARCHER COUNTY,  TEXAS: All of the East 120 acres of the 237.75
      acre tract out of the R. H. Kirk Survey,  Abstract 250, situated in Archer
      County,  Texas said 237.75 acre tract being  described by metes and bounds
      as follows,  to-wit:  Beginning at the most Westerly  Northwest  corner of
      said  survey,  thence East 3253 feet with Public  Road;  thence South with
      said road 134 feet; thence East with road 685 feet; thence South with road
      2531 feet;  thence West 3907.5  feet;  thence North with West line of said
      Survey,  2662 feet to the place of beginning and containing  237.75 acres,
      more or less,  being the same land conveyed in a Deed from John Krebs,  et
      ux, to O. A. Jones,  dated February 21, 1920,  recorded in volume 64, Page
      181, Deed Records, Archer County, Texas, to which reference is here made.

5.    UNIT NAME:         Jones-Ford Unit

      LEASE NUMBER:      TX  6334-000
      LEASE DATE:        10-18-45
      LESSOR:            O. A. Jones, et ux
      LESSEE:            Fred M. Manning, Inc.
      RECORDED:          Book 200, Page 237



      DESCRIPTION:  INSOFAR AS SAID LEASE COVERS THE  FOLLOWING  DESCRIBED  LAND
      SITUATED IN ARCHER COUNTY,  TEXAS:  The West 117.75 acres of a 237.75 acre
      tract out the H. H. Kirk Survey,  Abstract 250, Archer County, Texas, said
      237.75  acre  tract  being  described  by metes  and  bounds  as  follows:
      Beginning at the most  Westerly  Northwest  corner of said survey,  thence
      East 3253 feet with  Public  Road;  thence  South with said road 134 feet;
      thence East with road 605 feet;  thence South with road 2531 feet;  thence
      West 3907.5 feet; thence North with West line of said Survey, 2662 feet to
      the place of beginning and containing  237.75 acres,  more or less,  being
      the same land  conveyed in a Deed from John Krebs,  et ux, to O. A. Jones,
      dated  February 21, 1920,  recorded in volume 64, Page 181,  Deed Records,
      Archer County, Texas, to which reference is here made.

6.    UNIT NAME:         Jones-Ford Unit

      LEASE NUMBER:      TX  6336-000
      LEASE DATE:        12-6-55
      LESSOR:            W. H. F. Mahler, et ux, Lida Mahler
      LESSEE:            The Ibex Company
      RECORDED:          Book 254, Page 99
      DESCRIPTION:  INSOFAR AND ONLY  INSOFAR AS SAID LEASE  COVERS THE OIL, GAS
      AND OTHER MINERALS IN AND PRODUCED FROM THE HULL-SILK SAND FORMATION UNDER
      THE FOLLOWING DESCRIBED LAND SITUATED IN ARCHER COUNTY, TEXAS: 20 acres of
      land out of 112 acres of land,  more or less,  said 112 acres  tract being
      described  by metes and bounds in an oil and gas lease dated June 20, 1945
      from  Margaret  Park  Dearing,  as Lessor,  to E. R.  Perkins,  as Lessee,
      recorded in Volume 199, Page 572, Deed Records of Archer County,  Texas to
      which lease reference is here made for a complete  description of said 112
      acre  tract,  said 20 acre tract  being  described  by metes and bounds as
      follows:  Beginning at the Northwest corner of said 112 acre tract; thence
      Easterly with the North line of said tract,  a distance of 927.9 feet to a
      point;  thence in a Southerly direction and parallel with the West line of
      said 112 acre tract a distance of 928.9 feet to a point;  thence  Westerly
      and  parallel  with North line of said tract 937.9 feet with the West line
      of said tract;  thence  Northerly  with the West line of said tract to the
      place of beginning,  and being the same 20 acre tract  assigned by Fred M.
      Manning,  Inc.,  et al , to Jack E. Kadane on July 29, 1947, by instrument
      shown of record in Volume 207,  Page 519,  Deed Records of Archer  County,
      Texas,  and  subsequently  released  by Jack E.  Kadane  in an  instrument
      recorded in Volume 247, Page 197, Deed Records of Archer County, Texas.

7.    UNIT NAME:         Jones-Ford Unit

      LEASE NUMBER:      TX  6336-001
      LEASE DATE:        12-6-55



      LESSOR:            Margaret Park Dearing
      LESSEE:            The Ibex Company
      RECORDED:          Book 254, Page 194
      DESCRIPTION:  INSOFAR AND ONLY  INSOFAR AS SAID LEASE  COVERS THE OIL, GAS
      AND OTHER MINERALS IN AND PRODUCED FROM THE HULL-SILK SAND FORMATION UNDER
      THE FOLLOWING DESCRIBED LAND SITUATED IN ARCHER COUNTY, TEXAS: 20 acres of
      land out of 112 acres of land,  more or less,  said 112 acres  tract being
      described  by metes and bounds in an oil and gas lease dated June 20, 1945
      from  Margaret  Park  Dearing,  as Lessor,  to E. R.  Perkins,  as Lessee,
      recorded in Volume 199, Page 572, Deed Records of Archer County,  Texas to
      which lease reference is here made for a complete  description of said 112
      acre  tract,  said 20 acre tract  being  described  by metes and bounds as
      follows:  Beginning at the Northwest corner of said 112 acre tract; thence
      Easterly with the North line of said tract,  a distance of 927.9 feet to a
      point;  thence in a Southerly direction and parallel with the West line of
      said 112 acre tract a distance of 928.9 feet to a point;  thence  Westerly
      and  parallel  with North line of said tract 937.9 feet with the West line
      of said tract;  thence  Northerly  with the West line of said tract to the
      place of beginning,  and being the same 20 acre tract  assigned by Fred M.
      Manning,  Inc.,  et al , to Jack E. Kadane on July 29, 1947, by instrument
      shown of record in Volume 207,  Page 519,  Deed Records of Archer  County,
      Texas,  and  subsequently  released  by Jack E.  Kadane  in an  instrument
      recorded in Volume 247, Page 197, Deed Records of Archer County, Texas.

8.    UNIT NAME:         Jones-Ford Unit

      LEASE NUMBER:      TX  6335-000
      LEASE DATE:        6-20-45
      LESSOR:            W. H. F.  Mahler, et ux
      LESSEE:            E. R. Perkins
      RECORDED:          Book 200, Page 159
      DESCRIPTION:  INSOFAR AND ONLY  INSOFAR AS SAID LEASE  COVERS THE OIL, GAS
      AND OTHER MINERALS IN AND PRODUCED FROM THE HULL-SILK SAND FORMATION UNDER
      THE FOLLOWING DESCRIBED LAND SITUATED IN ARCHER COUNTY, TEXAS: 19.52 acres
      of land,  more or less,  being all of the 112 acres of land, more or less,
      out of the I. Kornicky  Survey No. 12, Abstract 244, The H. H. Kirk Survey
      Abstract 250, and Section 19, Block1, H & TC RR Co. Survey,  Abstract 223,
      and described by metes and bounds as follows:  Beginning at a point on the
      North line of Section 20, Block 1, H & TC RR Co. Survey,  322.0 varas East
      of the Northwest  corner thereof,  same being the Southwest corner of this
      tract;  thence East along the north line of Section 20, Block 1, H & TC RR
      Co.  Survey 675.3 varas to corner in fence;  thence North 940.3 varas with
      fence to a corner in  fence;  thence  West  675.3  varas to the  Northwest
      corner of said 112 acre tract at corner in fence;  thence South with fence
      line  929.1  varas to the place of  beginning,  and  being the same  tract
      conveyed to R. H. Dearing by Z. E. Scofield, et ux, by deed dated June 29,
      1920,  recorded in Volume 64,  Page 414,  Deed  Records of Archer  County,
      Texas,  SAVE AND EXCEPT the following:  That certain 20 acre tract of land
      described in Lease No. TX 6336-000 and TX 6336-001,  above with respect to
      the Mahler-Dearing (20 acre) Lease,



9.    UNIT NAME:         Jones-Ford Unit

      LEASE NUMBER:      TX 6335-001
      LEASE DATE:        6-20-45
      LESSOR:            Margaret Park Dearing
      LESSEE:            E. R. Perkins
      RECORDED:          Book 119, Page 572

      DESCRIPTION:  INSOFAR AND ONLY  INSOFAR AS SAID LEASE  COVERS THE OIL, GAS
      AND OTHER MINERALS IN AND PRODUCED FROM THE HULL-SILK SAND FORMATION UNDER
      THE FOLLOWING DESCRIBED LAND SITUATED IN ARCHER COUNTY, TEXAS: 19.52 acres
      of land,  more or less,  being all of the 112 acres of land, more or less,
      out of the I. Kornicky Survey No. 12, Abstract 244, the R. H. Kirk Survey,
      Abstract 250, and Section 19, Block 1, H & TC RR Co. Survey, Abstract 223,
      and described by metes and bounds as follows:  Beginning at a point on the
      North line of Section 20, Block 1, H & TC RR Co. Survey,  322.0 varas East
      of the Northwest  corner thereof,  same being the Southwest corner of this
      tract;  thence East along the North line of Section 20, Block 1, H & TC RR
      Co.  Survey 675.3 varas to corner in fence;  thence North 940.3 varas with
      fence to a corner in  fence;  thence  West  675.3  varas to the  Northwest
      corner of said 112 acre tract at corner in fence;  thence South with fence
      line  929.1  varas to the place of  beginning,  and  being the same  tract
      conveyed to R. H. Dearing by Z. E. Scofield,  etux, by deed dated June 29,
      1920,  recorded in Volume 64,  Page 414,  Deed  Records of Archer  County,
      Texas,  SAVE AND EXCEPT the following:  That certain 20 acre tract of land
      described in Lease No. TX 6336-000 and TX 6336-001,  above with respect to
      the Mahler-Dearing (20 acre) Lease.

10.   UNIT NAME:         Jones-Ford Unit

      LEASE NUMBER:      TX 6337-000
      LEASE DATE:        6-20-45
      LESSOR:            W. H. F. Mahler, et ux
      LESSEE:            E. R. Perkins
      RECORDED:          Book 200, Page 153



      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS THE  FOLLOWING
      DESCRIBED LAND SITUATED IN ARCHER COUNTY,  TEXAS: The North 29.65 acres of
      the East 42.53 acres of a tract of 70.42 acres,  more or less,  out of the
      I.  Kornicky  Survey  No. 12,  Abstract  244,  and the R. H. Kirk  Survey,
      Abstract 250, said 70.42 acre tract being described by metes and bounds as
      follows: Beginning at a point in the present fence line 352.3 feet West of
      the  Northwest  corner of Survey 20, Block 1, H & TC RR Co.  Survey,  same
      being the  Southwest  corner of a 40 acre tract leased to E. R. Perkins by
      instrument  recorded  in Volume  200,  Page 157,  Deed  Records  of Archer
      County,  Texas;  thence  North  with the West  line of said 40 acre  tract
      533.15  varas to its  Northwest  corner;  thence East 423.55  varas to the
      Northeast  corner of said 40 acre tract;  thence North with the fence line
      and the West line of the  original  R. H.  Dearing  112 acre tract  395.95
      varas to a point in fence line;  thence West 675.4 varas to the  Northeast
      corner of a 227.09 acre tract  917.9  varas to point in fence,  same being
      the  Southeast  corner of said 227.09 acre tract;  thence South with fence
      and the East line of said 227.09 acre tract 917.9 varas to point in fence,
      same being the  Southeast  corner of said 227.09  acre tract;  thence East
      with fence 251.5 varas to place of beginning.

11.   UNIT NAME:         Jones-Ford Unit

      LEASE NUMBER:      TX 6337-000
      LEASE DATE:        6-20-45
      LESSOR:            W. H. F. Mahler, et ux
      LESSEE:            E. R. Perkins
      RECORDED:          Book 200, Page 153
      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS THE  FOLLOWING
      DESCRIBED LAND SITUATED IN ARCHER COUNTY,  TEXAS: The North 20.43 acres of
      the 55.78 acre tract  composed  of two tracts of land fully  described  as
      follows:  Tract I: The East 27.89  acres of a 227.89 acre tract out of the
      William Shaw Survey, Abstract 378, the I. Kornicky Survey No. 12, Abstract
      244,  and the R. H. Kirk Survey,  Abstract  250,  said entire  227.89 acre
      tract being described by metes and bounds as follows: Beginning at a point
      in the fence line as now located on the ground that is 351.8 varas West of
      the Northwest corner of Survey No. 20, Block 1, H & TC RR Co. Survey, same
      being a corner in fence  and the  southeast  corner  of the  tract  herein
      described:  thence North with fence 917.9 varas to point in fence;  thence
      West 356.8  varas to point in fence and the East line of the Shaw  Survey;
      thence South 125.4 varas to corner in fence; thence West 1273.2 varas with
      fence to corner in fence;  thence South with fence line to corner in fence
      and the  Southwest  corner of the Shaw  Survey;  thence East at 1220 varas
      passing the  Southeast  corner of the Shaw Survey,  in all 1574.4 varas to
      the place of beginning.  Tract 2: The West 27.89 acres of a tract of 70.42
      acres,  more or less, out of the I. Kornicky  Survey No. 12, Abstract 244,
      and the R.H. Kirk Survey,  Abstract 250,  described by metes and bounds as
      follows:  Beginning at the point in the present  fence line that is 100.75
      varas West of the Northwest  corner of the  aforesaid  Survey No. 20, same
      being  Southwest  corner of a 40 acre  tract,  leased to E. R.  Perkins by
      instrument  recorded  in Volume  200,  Page 157,  Deed  Records  of Archer
      County,  Texas;  thence  North  with the West  line of said 40 acre  tract
      533.15  varas to its  Northwest  corner;  thence East 423.55  varas to the
      Northeast  corner of said 40 acre tract;  thence North with the fence line
      and the West line of the  original  R. H.  Dearing  112 acre tract  395.95
      varas to point in fence line;  thence  West 675.4  varas to the  Northeast
      corner of a 227.89 acre tract;  thence  South with fence and the East line
      of said 227.89  acre tract  917.9 varas to point in fence,  same being the
      Southeast  corner of said 227.89 acre tract;  thence East with fence 251.5
      varas to place of beginning.



12.   UNIT NAME:         Mahler "A" Unit

      LEASE NUMBER:      TX 6342-000
      LEASE DATE:        2-11-44
      LESSOR:            Herman Mahler, et ux
      LESSEE:            J. G. Wooten
      RECORDED:          Book 194, Page 170
      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS THE  FOLLOWING
      DESCRIBED LAND SITUATED IN ARCHER  COUNTY,  TEXAS: A 20 acre tract of land
      described as follows:  Commencing  at the  Southwest  corner of a 160 acre
      tract more  specifically  described in said lease,  thence North with West
      line of said 160 acre tract 933 1/3 feet to a point for  Northwest  corner
      of this tract;  thence East  parallel with the South line of said 160 acre
      tract 933 1/3 feet to Northeast corner of this 20 acre tract; thence South
      parallel with the West line of this tract 933 1/3 feet to Southeast corner
      in the South  line of said 160 acre  tract  933 1/3 feet to the  Southwest
      corner in of this tract and the point of  commencement  and  containing in
      all 20 acres of land.  RIGHTS  LIMITED  TO A DEPTH  BELOW  1,000 FEET FROM
      SURFACE AND LESS AND EXCEPT ALL LEASEHOLD RIGHTS IN AND TO THE VOGTSBERGER
      HORIZON OF STRAWN AGE BEING  IDENTIFIED AT A SUBSURFACE  INTERVAL OF 4,541
      FEET TO 4, 794 FEET.

13.   UNIT NAME:         Mahler "A" Unit

      LEASE NUMBER:      TX 10077-000
      LEASE DATE:        4-24-85
      LESSOR:            Caroline Mahler, a widow and Doris Mahler
                         Pappan
      LESSEE:            American Petrofina Company of Texas
      RECORDED:          Book 446, Page 198
      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS THE  FOLLOWING
      DESCRIBED LAND SITUATED IN ARCHER COUNTY,  TEXAS:  182 acres of land, more
      or less, out of 202 acres of land, more or less,  being a part of the West
      One-Half  (W/2) of Section 180,  Block 1 of the Houston and Texas  Central
      Railroad  Company  Survey,  A 898;  and more  particularly  described in a
      Warranty Deed from Fred Mahler and wife,  Anna Mahler,  to Herman  Mahler,
      filed December 11, 1930, recorded in Volume 143, Page 544, Deed Records of
      Archer  County,  Texas.  Deed  reference  made herein for a more  complete
      description of metes and bounds. SAVE AND EXCEPT 20 acres of land, more or
      less,  committed to the East Vogtsberger Unit,  Archer County,  Texas, and
      being operated by American Petrofina Company of Texas; said 20 acres being
      out of an  original  160 acre lease  from  Herman  Mahler,  et ux to J. G.
      Wooten,  dated  February 11, 1944,  recorded in Volume 194, Page 170, Deed
      Records of Archer County, Texas. SAVE AND EXCEPT the oil, gas and minerals
      to a depth of 2,000 feet beneath the surface of the  Northeast  Quarter of
      the  Northwest  Quarter (NE/4 NW/4) of Section 18, Block 1, of the Houston
      and Texas Central  Railroad Company Survey,  A-898; and more  particularly
      described in an Oil, Gas and Mineral Lease from Caroline Mahler,  et al to
      Larry P.  McClendon,  recorded in Volume 374,  Page 284,  Deed  Records of
      Archer County, Texas.



14.   UNIT NAME:         East Vogtsberger

      LEASE NUMBER:      TX 6341-000
      LEASE DATE:        8-16-54
      LESSOR:            Walter Ford and wife, Esther B. Ford,
                         J. R. Wilson, Arch Dawson, Mrs. Carrie
                         Mahler, a widow, Mrs. Lydia Hughes and
                         husband, Les Hughes, Katherine F.
                         McLaughlin and husband, Arch McLaughlin
      LESSEE:            John M. Mouser
      RECORDED:          Book 235, Page 323
      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS THE  FOLLOWING
      DESCRIPTION:  88 ACRES OF LAND,  MORE OR LESS, OUT OF Survey No. 19, Block
      1, H & TC RR Co.  Survey,  described  as follows:  Beginning  at Northeast
      corner of said  Section  19;  thence  South  with its East line 1459 feet;
      thence West  parallel  with North line of said  Survey  2602 feet;  thence
      North 524 varas to North line of said section; thence East with North line
      of said section 2604 feet to the beginning and  containing 88 acres,  more
      or less.

15.   UNIT NAME:         East Vogtsberger

      NUMBER:            TX 6341-001
      LEASE DATE:        8-16-54
      LESSOR:            Arch McLaughlin and Katherine F.
                         McLaughlin, husband and wife
      LESSEE:            John M. Mouser
      RECORDED:          Book 235, Page 325
      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS THE  FOLLOWING
      DESCRIPTION:  88 acres of land,  more or less, out of Survey No. 19, Block
      1, H & TC RR Co.  Survey,  described  as follows:  Beginning  at Northeast
      corner of said  Section  19;  thence  South  with its East line 1459 feet,
      thence West  parallel  with North line of said  Survey  2602 feet;  thence
      North 524 varas to North line of said Section; thence East with North line
      of said Section 2604 feet to the beginning and  containing 88 acres,  more
      or less.



16.   UNIT NAME:         East Vogtsberger

      NUMBER:            TX  6342-000
      LEASE DATE:        2-11-44
      LESSOR:            Herman Mahler, et ux
      LESSEE:            J.G. Wootten
      RECORDED:          Book 194, Page 170
      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS ALL FARMATIONS
      BELOW  1000 FEET FROM THE  SURFACE  IN AND UNDER THE  FOLLOWING  DESCRIBED
      LAND: That certain 20 acre tract of land out of certain 160 acre tract out
      of H & TC RR Co. Survey No. 18, Certificate 32/3066, Block 1, Abstract No.
      8998 at the more  specifically  described  Oil and Gas Lease  here  before
      executed by Herman Mahler and wife Caroline Mahler,  as Lessors,  to J. C.
      Wootten,  as Lessee,  dated February 11, 1944 duly recorded in Volume 194,
      Page 170,  of the Deed  Records of Archer  County,  Texas and said 20 acre
      tract being more  specifically  described  as follows:  Commencing  at the
      Southwest  corner of said 160 acre tract;  thence  North with West line of
      said 160 acre tract 933 1/3 feet to a point for  Northwest  corner of this
      tract; thence East parallel with the South line of said 160 acre tract 933
      1/3 feet to Northeast corner of this 20 acre tract;  thence South parallel
      with the West line of this tract 933 1/3 feet to  Southeast  corner in the
      South  line of said 160 acre  tract;  thence  West along the South line of
      said 160 acre tract 933 1/3 feet to the Southwest corner of this tract and
      the point of commencement and containing in all 20 acres of land.  INSOFAR
      AND ONLY INSOFAR AS SAID TWENTY (20) ACRES COVER THE  VOGTSBERGER  HORIZON
      OF STRAWN AGE BEING  IDENTIFIED AT A SUNSURFACE  INTERVAL OF 4,641 FEET TO
      4,794 FEET.

17.   UNIT NAME:         East Vogtsberger

      NUMBER:            TX 6343-000
      LEASE DATE:        1-20-45
      LESSOR:            Blanche Nichols McKee, et al
      LESSEE:            J. G. Wooten
      RECORDED:          Book 198, Page 506
      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS THE  FOLLOWING
      DESCRIPTION:  Being Lots 1,2,3,4,5,  and 6 in and being all of Block 50 of
      the  American  Tribune  New Colony  Lands,  and being a part of Survey 19,
      Block 1, H & TC RR Co.  Survey,  Abstract  No.  223,  situated  in  Archer
      County,  Texas  according to the recorded map or plat said  subdivision of
      record in the office of the County Clerk of Archer County,Texas,  SAVE AND
      EXCEPT the South 128 acres  thereof,  and  containing  100 acres,  more or
      less.

18.   UNIT NAME:         East Vogtsberger

      NUMBER:            TX 6344 -000
      LEASE DATE:        11-19-54



      LESSOR:            Adelbert P. Nichols, Jr.
      LESSEE:            The Ibes Company
      RECORDED:          Book 247, Page 372
      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS THE  FOLLOWING
      DESCRIPTION: Being the South 128 acres of the following described tract of
      land: Lots 1,2,3,4,5, and 6 in Block 50 of the American Tribune New Colony
      Company Lands,  according to the recorded map or plat of said  subdivision
      of record in the office of the County Clerk of Archer County,  Texas,  and
      being the same 120 acres of land  described in the Partial  Release of Oil
      and Gas Lease from Fred M. Manning,  Inc. et al, to Blanche Nichols McKee,
      et al.

19.   UNIT NAME:         West Vogtsberger

      LEASE NUMBER:      TX 6331-000
      LEASE DATE:        4-26-45
      LESSOR:            Walter Ford, et al
      LESSEE:            E. R. Perkins
      RECORDED:          Book 200, Page 161  LEASE DATE:
      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS THE  FOLLOWING
      DESCRIPTION:  220.5 acres, more or less, out of Survey 19, Block 1, H & TC
      RR  Co.  Survey,  Abstract  223,described  as  follows:  Beginning  at the
      Northwest  corner  of a 160 acre  tract  conveyed  to W.I.  Haston by deed
      recorded  in Volume U, Page 43,  Deed  Records  of Archer  County,  Texas:
      thence North  1455.56 feet to the North line of said Survey 19,  corner in
      road; thence West with North line of said Survey 1538.89 feet to Northeast
      corner of the 10 acre tract sold to the Church;  thence South 1089.92 feet
      to corner;  thence  West 330 feet to corner;  thence  South  707.5 feet to
      corner;  thence West 770 feet to the West line of said  Survey 19;  thence
      South 725 feet to Southeast  corner of the original corner of the original
      Krebs  tract;  thence  East  833.3 feet to  Northeast  corner of the R. H.
      Dearing 112 acre tract;  thence South with East line of said Dearing tract
      2600 feet to the Southeast  corner thereof in the Southline of Section 19;
      thence East 1805.56 feet;  thence North  passing the  Southwest  corner of
      said Haston tract, in all 3666.67 feet to place of beginning.

20.   UNIT NAME:         West Vogtsberger

      NUMBER:            TX 6332-000
      LEASE DATE:        9-1-45
      LESSOR:            First Evangelical Church
      LESSEE:            E.R. Perkins
      RECORDED:          Book 200, Page 229
      DESCRIPTION:  INSOFAR AND OMLY INSOFAR AS SAID LEASE COVERS THE  FOLLOWING
      DESCRIPTION:  40  acres of land out of  Survey  19,  Block 1, H &TC RR Co.
      Survey, Abstract 233, described by metes and bounds as follows:  Beginning
      at the Northwest corner of said Survey 19; thence East with its North line
      1100 feet to corner;  thence South 1089.92 feet to corner; thence West 330
      feet to corner; thence South 707.5 feet to corner; thence West 770 feet to
      corner in West line of Section 19;  thence North with West line of Section
      19, 1797.4 feet to place of beginning, of Archer County, Texas.



21.   UNIT NAME:         West Vogtsberger

      NUMBER:            TX 6331-000
      LEASE DATE:        4-26-45
      LESSOR:            Walter Ford, et al
      LESSEE:            E. R. Perkins
      RECORDED:          Book 200, Page 161 LEASE DATE:
      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS THE  FOLLOWING
      DESCRIPTION:  40 acres of land out of  Survey  19,  Block 1, H & TC RR Co.
      Survey, Abstract 223, described by metes and bounds as follows:  Beginning
      at the Northwest corner of said Survey 19; thence East with its North line
      1100 feet to corner;  thence South 1089.92 feet to corner; thence West 330
      feet to corner; thence South 707.5 feet to corner; thence West 770 feet to
      corner in West line of Section 19;  thence North with West line of Section
      19, 1797.4 feet to place of beginning, of Archer County, Texas.

22.   UNIT NAME:         West Vogtsberger

      NUMBER:            TX 6333-000
      LEASE DATE:        6-20-45
      LESSOR:            O. A. Jones
      LESSEE:            E. R. Perkins
      RECORDED:          Book 200, Page 151
      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS THE  FOLLOWING
      DESCRIPTION:  All of the East 120 acres of a 237.75  acre tract out of the
      H. H. Kirk Survey,  Abstract 250,  situated in Archer County,  Texas, said
      237.75 acre tract being described by metes and bounds as follows,  to-wit;
      Beginning at the most  Westerly  Northwest  corner of said Survey;  thence
      East 3253 feet with  Public  Road;  thence  South with said road 134 feet;
      thence East with road 685 feet;  thence South with road 2531 feet;  thence
      West 3907.5 feet; thence North with West line of said Survey, 2662 feet to
      the place of beginning and containing  237.75 acres,  more of less,  being
      the same land  conveyed  in a Deed from John  Krebs et ux to O. A.  Jones,
      dated  February 21, 1920,  recorded in Volume 64, Page 181,  Deed Records,
      Archer County, Texas, to which reference is here made.

23.   UNIT NAME:         West Vogtsberger

      NUMBER:            TX 6335-000



      LEASE DATE:        6-20-45
      LESSOR:            W. H. F. Mahler, et ux
      LESSEE:            E. R. Perkins
      RECORDED:          Book 200, Page 159
      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS THE  FOLLOWING
      DESCRIPTION:  72.48 acres of land out of 112 acres of land,  more or less,
      described  by metes and bounds as follows:  Beginning on the North line of
      Section 20,  Block 1, H & TC RR Co.  Survey  322.8 varas East of Northwest
      corner  thereof;  thence East 675.3 varas to the Southeast  corner of said
      112 acre tract;  thence  North 0 degrees 7 minutes  East with East line of
      said 112 acre tract 605.9 varas;  thence Westerly  parallel with Northerly
      line of said 112 acre  tract  675.3  varas to a point on West line of said
      112 acre  tract and the  Southwest  corner of the  Mahler  Dearing 20 acre
      tract;  thence South 0 degrees;  7 minutes West with the West line of said
      112 acre tract 594.7 varas to the place of  beginning,  situated in Archer
      County, Texas.

24.   UNIT NAME:         West Vogtsberger

      NUMBER:            TX 6335-001
      LEASE DATE:        6-20-45
      LESSOR:            Margaret Park Dearing
      LESSEE:            E. R. Perkins
      RECORDED:          Book 199, Page 572
      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS THE  FOLLOWING
      DESCRIPTION:  72.48 acres of land out of 112 acres of land,  more or less,
      described  by metes and  bounds as  follows:  Beginning  on North  line of
      Section 20,  Block 1, H & TC RR Co.  Survey  322.8 varas East of Northwest
      corner  thereof;  thence East 675.3 varas to the Southeast  corner of said
      112 acre tract;  thence  North 0 degrees 7 minutes  East with East line of
      said 112 acre tract 605.9 varas;  thence Westerly  parallel with Northerly
      line of said 112 acre  tract  675.3  varas to a point on West line of said
      112 acre  tract and the  Southwest  corner of the  Mahler  Dearing 20 acre
      tract;  thence South 0 degrees,  7 minutes West with the West line of said
      112 acre tract 594.7 varas to the place of  beginning,  situated in Archer
      County, Texas.

25.   UNIT NAME:         West Vogtsberger

      NUMBER:            TX 6335-000
      LEASE DATE:        6-20-45
      LESSOR:            W. H. F. Mahler, et ux
      LESSEE:            E. R. Perkins
      RECORDED:          Book 200, Page 159
      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS THE  FOLLOWING
      DESCRIPTION-  SAVE AND EXCEPT  FROM SAID LAND  HULL-SILK  SAND  FORMATION:
      39.52 acres of land, more or less, being the same 39.52 acre tract of land
      described  in a Pooling  agreement  dated  April  16,  1959,  executed  by
      Margaret  Park  Dearing,  to  which  Pooling  Agreement  as  ratified  and
      supplemented, reference is here made for all purposes.



26.   UNIT NAME:         West Vogtsberger

      NUMBER:            TX 6338-000
      LEASE DATE:        7-3-62
      LESSOR:            Lida Mahler, Individually and as
                         Executrix of the Estate of W. H. F.
                         Mahler, deceased
      LESSEE:            Graridge Corporation
      RECORDED:          Book 288, Page 163
      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS THE FOLLOWING:
      Being 40 acres of land,  being parts of the I. Kornicky  Survey,  Abstract
      244,  and the H. H. Kirk  Survey,  Abstract  250,  described  by metes and
      bounds as follows:  Beginning  at a point of the North line of Section 20,
      Block 1, H &TC RR Co.  Lands  322.0  varas  East of the  Northwest  corner
      thereof,  same  being the  Southwest  corner  of a 112 acre  tract as more
      particularly described in Volume 64, Page 414, Deed Records Archer County,
      Texas, for the Southeast corner and beginning corner of this tract; thence
      North  with the fence line  533.15  varas to a corner in the fence for the
      Northeast  corner of this tract;  thence West parallel with the South line
      of this tract  423.55  varas to a point for the  Northwest  corner of this
      tract; thence South parallel with the West line of this tract 533.15 varas
      to a point in the fence line;  thence  East  423.55  varas to the place of
      beginning, and containing 40 acres, more or less.

27.   UNIT NAME:         West Vogtsberger

      NUMBER:            TX 6339-000
      LEASE DATE:        5-14-59
      LESSOR:            American Climax Petroleum Corp.
      LESSEE:            The Ibex Company
      RECORDED:          Book 269, Page 572
      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS THE FOLLOWING:
      The Northeast  Quarter of the  Northwest  Quarter (NE/4 NW/4) of H & TC RR
      Co. Survey, Block 20, Abstract 1198, Archer County, Texas.

28.   WELL NAME:         Block Estate

      LEASE NUMBER:      TX 6340-000
      LEASE DATE:        2-17-44
      LESSOR:            E.J. Mahler et al
      LESSEE:            J. G. Wooten



      RECORDED:          Book 197, Page 27
      DESCRIPTION:  INSOFAR AND ONLY INSOFAR AS SAID LEASE COVERS THE  FOLLOWING
      LANDS,  TO-WIT:  The North 160 acres of the East Half LESS AND  EXCEPT the
      Northwest  40 acres of the East Half from the surface of the earth to 2000
      feet below the surface of the earth.  Section  18,  Block 1, H & TC RR Co.
      Survey, A-898, Archer County, Texas.

COLEMAN COUNTY, TEXAS

TRACT I - May  Hagler  Lease:  The south 180 acres of the north 260 acres of the
west 413 acres of the  Bradford  Fowler  Survey No. 485, and being the same land
described  in said lease dated March 25, 1953,  executed by Ella May Hagler,  et
al, as Lessor, in favor of Carvel Walker, as Lessee,  recorded in Vol. 326, page
316, of the Deed Records of Coleman County, Texas,

TRACT II - J. G. Parker Lease: Lease recorded in Vol. 326, page 312, of the Deed
Records of Coleman  County,  Texas and  described as follows:  103 acres of land
located in the SW part of the Bradford  Fowler  Survey No. 485,  A-203,  Coleman
County,  Texas, to wit: all of the following described 153 acres of land, except
the west 50 acres  thereof:  beginning at the SW corner of said  survey;  thence
north  586.7 vrs. To the SW corner of and  80-acre  tract sold to P. B.  Hagler;
thence east 1550 vrs. with Hagler's south line to a st. md. set for NE corner of
the  subdivision;  thence  south 528.8 vrs. to st. set in the south line of said
Survey No. 485;  thence SW 1550 vrs. with the south boundary line of said survey
to the place of beginning, and being the same land described in the Deed from J.
A. Parker to Jett Parker dated November 27, 1908,  recorded in Vol. 65, page 367
of the Deed Records of Coleman County, Texas.

TRACT III - Donie Seal Lease:  Lease recorded in Vol. 326, page 304, of the Deed
Records of Coleman  County,  Texas,  and described as follows:  all that certain
tract of parcel of land,  lying and being  situated  in Coleman  County,  Texas,
being 80 acres out of the Bradford Fowler Survey No. 485, page no. 63, cert. No.
1144,  abstract 203, meted and bounded as follows,  to wit:  beginning at the NE
corner of an 180 acre  subdivision  out of the Bradford Fowler Survey No. 485, a
st. md. in the north line of said Survey,  and 971 vrs. west of the NE corner of
said  Survey;  thence  south  291.37  vrs.  with  east  line  of said  180  acre
subdivision to the SE corner of this 80 acre subdivision;  thence west 1550 vrs.
through said 180 acre subdivision to the SW corner of this 80 acre tract; in the
west line of said Survey No. 485; thence north 291.37 vrs. with the west line of
said Survey to a st. md. for the NW corner of said  Survey No. 485;  thence east
1550 vrs.  with the north  line of said  Survey to the place of  beginning,  and
being  the  same  land  described  in Deed  from J. L.  Saverance,  et ux,  Lola
Saverance,  to H. A. Hagler,  dated January 5, 1942,  recorded in Vol. 237, page
497,  Coleman County Deed Records,  here referred to, and containing 80 acres of
land, more or less.



TRACT IV - Fred  Knowles  Lease:  Recorded  in Vol.  327,  0age 470, of the Deed
Records of Coleman County, Texas, and described as follows; 150.62 acres of land
out of the M.D.J  Trevino  Survey No.  668,  and being  Block 1 of said  Survey,
described  by metes and bounds as  follows;  beginning  in the east line of said
Survey 2,115 vrs. north of the SE corner of said Survey;  thence west 599.2 vrs.
to the NW corner of Block No. 1; thence south 1419 vrs.; thence east 599.2 vrs.;
thence  north  with the east  line of said  Survey,  1419  vrs.  to the place of
beginning and being the same land described in the Deed to Fred Knowles and wife
dated March 29,  1951,  recorded in Vol.  303,  page 408, of the Deed Records of
Coleman County, Texas, SAVE AND EXCEPT the north 40 acres thereof.

TRACT V - A. R. Neff and Ruby Nell Neff Lease:  Recorded in Vol. 338, page 90 of
the Deed  Records of Coleman  County,  Texas  covering the  following  described
tracts:

      Tract  1-137  acres of Land out of the  Bradford  Fowler  Survey No.  485,
      A-203,  and  describe by metes and bounds as follows:  beginning at the SE
      corner of Survey NO. 484, a stake from wh a L.O. 10" in dia. Brs. S. 72 W.
      46 L. O. 10" in dia. Brs. S 49 W 41 vrs.; thence south 1449 vrs. a st. for
      corner;  thence south 87-3/48 W 529 vrs. a st. SW corner this tract and SE
      corner  of  subdivision  sold to E. W.  Parker;  thence  north  with E. W.
      Parker's  east line 1,469 vrs. a st. md in north line of  Bradford  Fowler
      Survey No. 485 for NW corner  this tract and NE corner of the E. W. Parker
      subdivision;  thence east with north line of said  Bradford  Fowler Survey
      529 vrs. to place of beginning,  and being the same land conveyed to L. C.
      Vaughn by Jett  Parker and N. C.  Parker by Deed  recorded in Vol 55, page
      228, Deed Records of Coleman County, Texas, same here referred to and made
      a part hereof.

      Tract 2-116 acres of land out of the Bradford  Fowler  Survey No. 485, and
      describe by metes and bounds as follows;  beginning  at a st. md. in north
      line of Survey No. 485 , 529 vrs. west of its NE corner for NE corner this
      tract;  and NW corner of  subdivision  owned by Jett Parker;  thence south
      with the west line of Jett Parker  subdivision  1469 vrs. st md. SE corner
      this tract SW corner Jett Parker tract;  thence south 83-3/4 deg. West 443
      vrs.; thence north 830 vrs. pass over SE corner subdivision of subdivision
      owned Alvin  Parker,  continue  north 646 vrs.  1486 vrs. in all st. md in
      north line of Survey No. 485 for NW corner  this  tract;  thence east with
      north line of said Survey,  443 vrs. to the place of beginning,  and being
      the same  land  conveyed  to L. C.  Vaughn by E. W.  Parker by Deed  dated
      August 20, 1905, and recorded in Vol. 55, page 229, of the Deed Records of
      Coleman county, Texas, here referred to and made a part hereof;

      AND BEING the same two tracts of land conveyed by M. H,  Gossett,  Trustee
      for the Federal Land Bank of Houston,  by Leonidas C.  Vaughn,  by Deed of
      Trust dated April 26,  1922,  filed April 29,  1922,  recorded in Vol. 44,
      page 144, Deed of Trust Records of Coleman County, Texas.



TRACT VI - J. C. Parker Lease:  Lease dated  September 9, 1955,  and recorded in
Vol.  355,  page 439,  Deed Records of Coleman  County,  Texas and  described as
follows:  50 acres of land, more or less, being the west 50 acres of a tract 153
acres out of the Branford  Fowler Survey No. 485,  patent No. 63,  certification
No. 1144,  Abstract No. 203, Coleman County,  Texas and said 50 acres being more
particular described in Oil, Gas, and Mineral Lease from J. G. Parker, et ux, to
Frank W. Burger dated September 5, 1955,  recorded in Vol. 355, page 439, of the
Deed Records of Coleman County, Texas.

The above interests are subject to the terms and conditions of that certain Unit
Agreement for the Hagler (Capps Lime) Unit dated May 15, 1963,  and that certain
Unit Operating Agreement for the Hagler (Capps Line) unit dated May 15, 1963.

EAST HAGLER TRACT - Being 216.22 acres, more or less, and being out of the James
Foley  Survey No. 489,  Abstract  No. 200,  and the Andres Gable Survey No. 271,
Abstract  No.  226,  as  recorded  in Vol.  600,  page 329 of the Dee Records of
Coleman  County,  Texas,  INSOFAR  AND ONLY  INSOFAR  AS said  lease  covers the
proration unit around the East Hagler #1 well located 607.3' from the north line
and 681.3' from the west line of the James Foley  Survey No. 489, and being more
particularly  describe as follows,  to wit: beginning at the northwest corner of
said survey;  thence  south  937.3' to a point;  thence east 1011.3' to a point;
thence  north  937.3' to a point;  thence west 1011.3' to the place of beginning
and containing 21.76 acres, more or less.

CALLAHAN COUNTY, TEXAS

20 acres  around the Smith No. 1A  beginning  at a point 276.6 feet south of the
northwest  corner of the southeast  quarter  (SE/4) of said Survey 319 and being
the northwest corner of said 20 acre tract; thence east 1220 feet to a point for
the northeast  corner of said 20 acre tract;  thence south 714.1 feet to a point
being the  southeast  corner of said 20 acre  tract;  thence west 1220 feet to a
point for the southwest corner of said 20 acre tract; thence north 714.1 feet to
the place of beginning;

20 acres  around the Smith No. 1 well  beginning  at a point 990.7 feet south of
the  northwest  corner of the southeast  quarter  (SE/4) of said Survey 319 to a
point being the northwest corner of said 20 acre tract;  thence east 935 feet to
a point for the northeast corner of said 20 acre tract; thence south 935 feet to
a point for the southeast corner of said 20 acre tract;  thence west 935 feet to
a point for the southwest corner of said 20 acre tract; thence north 935 feet to
the place of the beginning;

20 acres around the Jacobs No. 2, 10 acres of which are located in the southeast
quarter  (SE/4) of said Section 319, said 20 acres being  described as beginning
at a point being north  89(degree)  27' 09" east 2289.15 feet from the southwest
corner of Section  319;  thence north  0(degree)  23' 12" west 1157.39 feet to a
point; thence north 89(degree) 27' 09" east 376.37 feet to a point; thence south
0(degree) 23' 12" east 415.57 feet to a point;  thence north  89(degree) 27' 09"
east 587.21 feet to a point;  thence south 0(degree) 23' 12" east 741.82 feet to
a point;  thence  south  89(degree)  27' 09" west  963.58  feet to the  place of
beginning and containing 20 acres of land, more of less;



20 acres  around  the  Jacobs No. 3-B well,  said 20 acres  being  described  as
beginning  at a point  north  89(degree)  27' 09"  east  2289.15  feet  from the
southwest  corner of Section  319;  thence  north 1157.4 feet to a point for the
northeast  corner of said 20 acre  tract;  thence west 752.7 feet to a point for
the  northwest  corner of said 20 acre tract;  thence  south  1157.4 feet to the
southwest  corner of said 20 acre tract;  thence east 752.7 feet to the place of
beginning.

20 acres  around  the  Jacobs  No.  1 well,  said 20 acres  being  described  as
beginning at a point 1157.4 feet north of the southeast  corner of the southwest
quarter  (SW/4)  of said  Survey  319 for the  southeast  corner of said 20 acre
tract; thence north 935 feet to a point for the northeast corner of said 20 acre
tract;  thence west 935 feet to a point for the northwest corner of said 20 acre
tract; thence south 935 feet to a point for the southwest corner of said 20 acre
tract; thence east 935 feet to the place of beginning.

1.    Lease  dated July 2, 1988,  from  George L. Ramsey and Homer K. Taylor and
      others,  as Lessor,  to D-T  Development  Company as Lessee,  recorded  in
      Volume 579, page 119, Deed Records,  Callahan  County,  Texas,  only as to
      depths below 2,000 feet.

2.    Lease dated  September  1, 1996,  from John H.  Wilson,  II,  Trustee,  as
      Lessor, to Richard D. Raughton as Lessee, recorded in Volume 42, page 129,
      Official Public Records, Callahan County, Texas.

3.    Lease dated August 29, 1996, from E. Murriell E. Wunderlich as Lessor,  to
      Richard D. Raughton as Lessee,  recorded in Volume 52, page 125,  Official
      Public Records, Callahan County, Texas.

4.    Lease  dated  August 29,  1996,  from  Manning  Oil  Partners,  a Colorado
      partnership,  as Lessor,  to Richard D.  Raughton  as Lessee,  recorded in
      Volume 52, page 122, Official Public Records, Callahan County, Texas.

5.    Lease dated  August 29, 1996,  from Mabel Dilger as Lessor,  to Richard D.
      Raughton  as Lessee,  recorded  in Volume 52,  page 132,  Official  Public
      Records, Callahan County, Texas.

6.    Lease dated June 13, 1996, from Mary Blackburn Bell as Lessor,  to Richard
      D. Raughton as Lessee,  recorded in Volume 52, page 144,  Official  Public
      Records, Callahan County, Texas.

7.    Lease dated June 13, 1996, from Eloise Zabloudil as Lessor,  to Richard D.
      Raughton  as Lessee,  recorded  in Volume 52,  page 138,  Official  Public
      Records, Callahan County, Texas.



8.    Lease  dated June 13,  1996,  from ZWM Trust,  Julie  Hagin,  Trustee,  as
      Lessor, to Richard D. Raughton as Lessee, recorded in Volume 52, page 141,
      Official Public Records, Callahan County, Texas.

9.    Lease dated August 9, 1996, from Cubelle L. Harris, Reciever for W.L. DeLa
      Houssaye and Ross W. Suggett as Lessor,  to Richard D. Raughton as Lessee,
      recorded in Volume 52, page 135, Official Public Records, Callahan County,
      Texas.

10.   Lease dated June 6, 1996,  from George L. Ramsey as  Attorney-in-Fact  for
      Jessie  Ramsey  Bryant,  as  Lessor,  to Richard  D.  Raughton  as Lessee,
      recorded in Volume 50, page 11, Official Public Records,  Callahan County,
      Texas.

11.   Lease  dated June 6, 1996,  from  George  Ramsey as Lessor,  to Richard D.
      Raughton  as  Lessee,  recorded  in Volume  50,  page 5,  Official  Public
      Records, Callahan County, Texas.

12.   Lease dated  October 1, 1996,  from Kathy  Sheree  Raughton  and George T.
      Smith as Lessor,  to Robert A.  Taylor as Lessee,  recorded  in Volume 54,
      page 17, Official Public Records, Callahan County, Texas.

PALO PINTO COUNTY, TEXAS

Oil and gas Lease between the City of Gordon, as Lessor, and Jack Parker,  Inc.,
as Lessee,  dated  December 15, 1978,  and recorded in Vol.  525, page 266, Deed
Records, Palo Pinto County, Texas, covering 320 acres, more or less.

Oil and Gas Lease dated June 18, 1946,  recorded in Volume 208,  Page 570,  Deed
Records  of Palo Pinto  County,  Texas,  executed  by F. B.  Belding,  et al, as
Lessor,  in favor of Palo Pinto Oil and Gas  Corporation,  covering 614.2 acres,
more or less,  out of Section 43,  Block 2, T&P Ry. Co.  Surveys,  Abstract  No.
1403, Palo Pinto County,  Texas,  and being all of said Section conveyed by Mrs.
Amelia  Lorenz to F.B.  Belding by Deed dated  November  29,  1935,  recorded in
Volume 182, Page 370, Deed Records,  SAVE AND EXCEPT those five tracts  excepted
from a Deed from F. B. Belding and wife to William  Sanders,  dated February 25,
1950, recorded in Volume 224, Page 19, Deed Records.  Limited to depths from the
surface of the earth to the depth of 1500 feet below the surface of the earth.



                                   Exhibit "C"

                              Management Agreement
                              (Under Construction)